The bill would
• Clarify that a federal court may find that a person violated the False Claims Act (FCA) even if the federal government has foregone a refund or paid a claim despite having actual knowledge of fraud or misrepresentation by that person
• Require the government to identify a purpose for dismissing FCA cases brought by whistleblowers and give whistleblowers an opportunity to show that the dismissal is fraudulent, arbitrary, and capricious, or contrary to law
• Expand whistleblower protections in FCA cases to former employees
• Direct the Government Accountability Office to report on FCA’s effectiveness after the bill is enacted
Estimated budgetary effects would mainly stem from
• Additional collections from damages and penalties in FCA cases that would not otherwise have been brought or won
• Spending by federal agencies of recoveries from FCA penalties that would not otherwise have been collected
• Increases in spending subject to appropriation for the Department of Justice to justify FCA case dismissals
• Increases in spending subject to appropriation for reporting to the Congress
Areas of significant uncertainty include
• Estimates of the number of successful FCA cases that result in additional collections under the bill
• Estimates of the number of FCA cases that would not otherwise have been brought or would have been dismissed but for the bill
