United States President Donald Trump has announced a new initiative to combat taxpayer fraud, offering financial rewards to individuals who provide tips leading to successful fraud convictions or significant federal actions.
The Fraud Whistleblower Incentive Programme, known as WHIP, was launched by President Trump and Vice President JD Vance during an Oval Office event on Tuesday. The US$25 million programme, administered by the Department of Justice, promises rewards of between US$10,000 and US$30,000 for actionable information.
The Justice Department will determine whether to approve or decline reward payments, though President Trump added that he would act as the arbitrator in cases where multiple individuals claim to have provided the same tip.
"I will be the arbitrator of all of these decisions," he said. "In other words, I'll determine whether or not the person is deserving."
During the announcement, President Trump honoured right-wing influencer Nick Shirley with a US$10,000 reward for exposing suspected fraud in Minnesota. The tip led to several investigations, arrests, charges and a guilty plea.
Programme details
According to a statement from the National Fraud Enforcement Division, the Criminal Tip Rewards Pilot Programme is subject to an initial three-year term. It accelerates fraud detection by providing a defined US$10,000 to US$30,000 financial reward for actionable tips at the charging stage of a criminal case.
The division said most existing government whistleblower rewards programmes provide for payments only after the final resolution of a criminal matter, including the forfeiture and appeals process. By contrast, the new programme rewards whistleblowers at a much earlier stage of a prosecution and does not require the matter to result in large fines or forfeiture.
These early-stage rewards aim to encourage prompt disclosure of information by giving whistleblowers more certainty about the amount and timing of a possible reward payment, while still leaving them eligible for potentially larger rewards should their tips ultimately lead to large financial penalties or forfeiture.
The division said the reward payments will initially be limited to federal health care offences and related crimes involving health care benefit programmes or fraud against patients, or fraud on programmes administered by the Departments of Agriculture, Labor, Health and Human Services, Housing and Urban Development, Education, Veterans Affairs, and the Small Business Administration.
The programme places a particular emphasis on submissions involving hospice, home health care, day care and special services fraud.
The division said eligibility is limited to individuals who voluntarily provide truthful and complete original information in writing, and that the information must lead to criminal charges. Companies are not eligible, nor are officials, employees or contractors of the Justice Department, foreign government officials, or individuals who meaningfully participated in the criminal activity they reported.
The division added that it has the authority to impose a permanent bar on individuals who send frivolous or fraudulent submissions.
