Justice Department Recovers Record Amount in False Claims Act Violations for 2025

Justice Department Reports Record $6.8 Billion in False Claims Act Recoveries

The Justice Department has achieved an unprecedented milestone in its fight against fraud, recovering $6.8 billion through False Claims Act settlements during fiscal year 2025—the largest sum in the department’s history.

The healthcare industry accounted for the vast majority of these recoveries, with $5.7 billion related to healthcare fraud cases. This reflects the government’s continued focus on combating fraud in one of the nation’s largest spending areas.

Whistleblowers played a crucial role in these efforts, with a record 1,297 qui tam lawsuits filed last year, spurring 401 government investigations. These figures underscore the effectiveness of whistleblower provisions in identifying and prosecuting fraudulent activities across various sectors.

Meanwhile, the Defense Department has joined the Treasury Department and Small Business Administration in expanding audits of the 8(a) small business contracting program. Defense Secretary Pete Hegseth announced a comprehensive review of all 8(a) sole-source contracts, with particular scrutiny on agreements exceeding $20 million.

“I’m ordering a line-by-line review of every small business sole source 8(a) contract that is over $20 million. We will look at everything smaller than that too,” Hegseth stated in a social media video.

The Pentagon, which spends approximately $100 million annually on 8(a) sole-source contracts, will conduct a two-stage review process. The first stage will assess whether contracts support the DoD mission, with those failing to meet this criterion facing cancellation. The second stage aims to verify that small businesses are performing the contracted work themselves rather than acting as pass-through entities.

In technology oversight developments, House Democrats have introduced legislation to establish stronger guardrails around the Department of Homeland Security’s use of facial recognition and biometric identification tools. The Realigning Mobile Phone Biometrics for American Privacy Protection Act comes amid concerns that Immigration and Customs Enforcement has been using an unverified biometric tool called Mobile Fortify to determine individuals’ legal status.

Federal workplace policies continue to evolve across agencies. The Office of Workers’ Compensation Programs is now offering remote work options to some employees, citing limited office space and recognizing that certain roles require less collaboration and more focused concentration. Simultaneously, an arbitrator has directed the Centers for Medicare and Medicaid Services to meet with one of its unions to discuss potential exemptions to its return-to-office mandate.

At the Department of Veterans Affairs, the search is underway for a permanent Under Secretary for Benefits to lead the Veterans Benefits Administration. The agency has achieved notable success during the Trump administration, reducing its backlog of benefits claims by 60%.

Transportation Security Administration employees secured a victory in their fight to maintain union representation. Federal Judge Jamal Whitehead ruled that TSA and the Department of Homeland Security violated a court order when they attempted to eliminate TSA collective bargaining rights late last year. The judge blocked a September DHS directive that would have dissolved TSA’s collective bargaining agreement, finding it would violate a preliminary injunction issued in June. The case is scheduled for trial in September.

In defense logistics, the Defense Logistics Agency is implementing artificial intelligence to enhance its demand planning capabilities. By incorporating maintenance, consumption, and supply data into its models—starting with Army data and expanding to other service branches—the agency aims to improve its currently 60% accurate demand forecasting, enhance inventory management, and reduce administrative and production lead times.

Finally, a bipartisan congressional effort seeks to hold military family housing contractors accountable for unsafe living conditions. The legislation, introduced by Senator Richard Blumenthal (D-Conn.), addresses longstanding issues including black mold, contaminated water, and asbestos exposure affecting approximately 700,000 service members and their families. The bill would establish humidity standards, create reporting mechanisms, require third-party oversight, and implement financial penalties for non-compliance.