Over the first five months of 2025, the US Department of Justice ramped up enforcement under the False Claims Act (FCA), finalising 128 settlements worth $1.257 billion, led by healthcare and COVID‑relief fraud cases, and launching key whistleblower‑driven actions, notably against major insurers and brokers accused of Medicare kickbacks. But beyond historic sectors, the DOJ has signalled a striking expansion, leveraging the FCA to pursue purported civil rights violations, tariff evasion, and non-compliance in Diversity, Equity & Inclusion (DEI) programmes.
This shift is reinforced by recent executive orders and internal DOJ guidance aimed at empowering whistleblowers and broadening FCA scope. Institutions receiving federal funding, including universities and healthcare providers, now face scrutiny if they misrepresent compliance in civil rights or DEI efforts. Similarly, trade compliance and tariff-related misconduct involving importers and brokers are on the radar, marking a departure from traditional fraud enforcement.
This enforcement recalibration aligns with broader DOJ trends. While the Foreign Corrupt Practices Act and anti‑bribery efforts have seen staffing reductions, the FCA’s toolkit continues to be emphasised as a central mechanism for corporate oversight. The Fraud Section’s 2024 Year in Review reported a record increase in prosecutions and recoveries – $2.3 billion in total, with healthcare fraud alone bringing in $3.26 billion in false claims.
For businesses and institutions, this evolving landscape demands proactive compliance strategies. Traditional anti‑fraud measures must now expand to audits of civil rights adherence, tariff reporting, and DEI compliance. Whistleblower programmes remain potent: over 83 % of FCA actions originate from qui tam filings, offering informants up to 30 per cent of recovered funds. Companies are urged to bolster internal reporting, confirm accurate federal fund usage, and diligently document DEI and trade practices.
Looking ahead, FCA enforcement is set to become even more pervasive and nuanced. With its expanded remit, the Act is no longer confined to billing or procurement fraud but extends to areas previously considered intangible or reputational. In this climate, robust internal controls, cross-sector training, and swift response protocols are essential to navigate risks and uphold compliance in a complex regulatory era.
