DOJ Reports Record False Claims Act Recoveries in 2025, Outlines 2026 Priorities

Justice Department Secures Record $6.8 Billion in False Claims Act Settlements for 2025

The Department of Justice announced on January 16, 2026, that it recovered a historic $6.8 billion in settlements and judgments under the False Claims Act for the fiscal year ending September 30, 2025. This represents the largest annual recovery in the statute’s history and more than doubles the previous year’s total of $2.9 billion.

Deputy Attorney General Blanche emphasized the importance of this enforcement tool, describing the False Claims Act as “one of the government’s most powerful weapons against fraud” and pledged continued aggressive enforcement in the coming year.

Healthcare fraud remained the dominant area for recoveries, accounting for approximately $5.7 billion of the total. These cases covered a wide spectrum of misconduct including improper billing practices in managed care, prescription drug violations, and charges for medically unnecessary services. The substantial healthcare recovery underscores the government’s ongoing commitment to combating fraud in this sector, which continues to represent a significant portion of federal spending.

The Justice Department also highlighted several other priority enforcement areas, including cybersecurity violations, pandemic-related program fraud, and tariff evasion. The latter falls under what prosecutors term “reverse” false claims actions, where entities unlawfully retain money owed to the government through customs fraud or similar schemes.

A notable addition to this year’s enforcement priorities is the reference to Executive Order No. 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which was implemented on January 21, 2025. The administration designed this order to combat what it terms “unlawful DEI” practices. The prominent placement of this initiative in the DOJ’s press release, alongside mention of 401 new government investigations, signals a significant enforcement focus in this area.

Whistleblower-initiated cases, known as qui tam suits, drove the vast majority of recoveries. These actions, filed by private individuals on the government’s behalf, accounted for more than $5.3 billion of the total $6.8 billion recovered. Fiscal year 2025 saw 1,297 qui tam lawsuits filed – the highest number ever recorded in a single year.

The record number of whistleblower cases raises significant implications for businesses across all sectors. With many of these suits brought by employees or contractors with insider knowledge, companies face increased scrutiny of their compliance practices. The False Claims Act’s robust anti-retaliation provisions further empower potential whistleblowers, creating additional risk exposure for organizations that mishandle potential complaints.

Legal experts note that this unprecedented level of enforcement activity indicates that the False Claims Act remains a cornerstone of the government’s anti-fraud strategy, with no signs of diminishing importance. While voluntary self-disclosure and proactive remedial measures can mitigate potential penalties in certain circumstances, such decisions require careful consideration given the potential for collateral exposure under the FCA and related statutes.

Companies facing potential False Claims Act issues should consult with legal counsel before engaging with the government or initiating internal communications about possible violations. This approach helps preserve attorney-client privilege and allows for the development of a strategic response tailored to specific circumstances and industry context.

The record recovery amount and increased whistleblower activity suggest that federal fraud enforcement will remain aggressive throughout 2026, with companies in highly regulated industries like healthcare, defense, and government contracting facing particular scrutiny.