What Is the False Claims Act?
The False Claims Act is the federal government's primary tool for fighting fraud against public programs — and it empowers ordinary people to help.
What the False Claims Act does
The False Claims Act (FCA) makes it illegal to knowingly submit false or fraudulent claims for payment to the federal government. That covers a wide range of misconduct — from a hospital billing Medicare for services it never provided to a contractor overcharging a federal agency. Violators can be held liable for up to three times the government's losses, plus substantial per-claim penalties. What makes the law unusual is its "qui tam" provision, which lets private individuals file suit on the government's behalf and share in any money recovered.
A brief history: from Lincoln to today
Congress passed the False Claims Act in 1863, during the Civil War, after suppliers defrauded the Union Army with faulty goods — which is why it is sometimes called "Lincoln's Law." The statute was significantly strengthened in 1986, when Congress increased penalties and enhanced the financial rewards and protections available to whistleblowers. Those amendments transformed the FCA into the powerful enforcement tool it is today, and the government has recovered tens of billions of dollars under it since.
Who can bring a qui tam action
A private individual who brings an FCA case is called a "relator." Relators are often employees, former employees, contractors, or other insiders with firsthand knowledge of fraud. To bring a case, you generally need original, non-public information about the fraud, and you typically must be the first to file on that specific conduct. You do not need to have been personally harmed — you are suing on behalf of the government. Qui tam cases must be filed through an attorney and are filed under seal, keeping them confidential while the government investigates.
The government's role: intervention vs. declination
After a qui tam case is filed, the U.S. Department of Justice investigates and decides whether to "intervene" — that is, take over primary responsibility for the case. If the government intervenes, it leads the litigation. If it declines, the relator and their attorney may still pursue the case on their own. Intervention is often a strong signal of a case's strength, but many successful recoveries have come from cases the government initially declined.
Statute of limitations
FCA claims are subject to time limits. Generally, a case must be filed within six years of the violation, or within three years after the government knew or should have known the key facts — whichever is later — but no more than ten years after the violation. Because these deadlines are fact-specific and can be complicated, it is important to speak with an attorney promptly if you believe you have information about fraud.