False Claims Act Enforcement Trends Expected for 2026

U.S. Justice Department secured a record $6.8 billion in False Claims Act recoveries during fiscal year 2025, largely stemming from investigations and whistleblower-initiated qui tam actions that began before the Trump administration took office. For corporate compliance officers monitoring enforcement trends, however, the current administration’s emerging focus areas may prove more significant than these historical figures.

“What we’re seeing in terms of current DOJ enforcement priorities—based on active investigations and litigation—are a steady drumbeat of healthcare-related matters, along with an uptick in actions focusing on alleged violations of customs laws, cybersecurity regulations, and Title IV funding requirements,” explained Douglas Baruch, litigation partner at Morgan Lewis.

The healthcare sector has traditionally dominated FCA cases, with pharmaceutical companies, hospital systems, and medical device manufacturers facing intense scrutiny over billing practices, kickback allegations, and quality of care issues. Industry analysts note that the complexity of healthcare billing systems and the massive federal expenditures in Medicare and Medicaid create fertile ground for potential fraud claims.

The DOJ’s expanding focus on customs violations marks a notable shift, reflecting the administration’s broader emphasis on trade enforcement. Companies importing goods face heightened scrutiny regarding country of origin declarations, tariff classifications, and compliance with anti-dumping regulations. Several multi-million dollar settlements in this area during the past year signal the government’s commitment to pursuing these cases.

Cybersecurity compliance has emerged as another key enforcement priority, particularly for government contractors. With federal agencies increasingly concerned about data protection and system integrity, contractors who misrepresent their security protocols or fail to report breaches face substantial liability under the FCA.

Title IV funding investigations target potential fraud in federal education programs, including student financial aid. For-profit educational institutions have faced particular scrutiny regarding recruitment practices, job placement statistics, and program accreditation claims.

Perhaps most striking in the 2025 data is the dramatic surge in whistleblower activity. Whistleblowers filed an unprecedented 1,297 qui tam cases in FY 2025, shattering the previous year’s record of 980 cases and more than tripling the government’s 401 self-initiated investigations. This whistleblower surge reflects both the administration’s active recruitment of insiders willing to report misconduct and the potentially lucrative rewards available under the FCA’s provisions.

Under the False Claims Act, whistleblowers who provide information about fraud against government programs can receive between 15 and 30 percent of any recovery. With several recent qui tam actions resulting in nine-figure settlements, the financial incentives for reporting potential violations have never been greater.

Legal experts note that the current administration has implemented several policies designed to encourage whistleblowing, including enhanced confidentiality protections, streamlined filing procedures, and public awareness campaigns highlighting successful cases and substantial rewards.

For corporate compliance officers, the message is clear: internal reporting systems must be robust enough to identify and address potential issues before employees feel compelled to report externally. Companies receiving federal funds or contracting with government agencies should review their compliance programs with particular attention to the DOJ’s current priority areas.

The record-breaking recovery figure, while impressive, also reflects the culmination of many long-running investigations. FCA cases typically develop over multiple years, with complex investigations often spanning administrative transitions. The cases resolved in 2025 frequently began under previous administrations, making them less indicative of current enforcement priorities than ongoing investigations and recent complaint filings.

As the administration continues to emphasize whistleblower participation and expand its enforcement focus beyond traditional healthcare fraud, companies across sectors face increasing pressure to ensure strict compliance with all federal program requirements and accurately represent their practices when seeking government funds.