DOJ revises Justice Manual to refocus False Claims Act enforcement

FCA enforcement under the Trump administration

The False Claims Act (FCA) has become a centerpiece of the anti-fraud agenda of the Trump administration–which has brought a number of actions against companies and individuals who allegedly submitted false claims or certifications to the government. In a May 2026 memorandum, Assistant Attorney General Brett Shumate called the FCA “one of the government’s most powerful weapons for fighting fraud and ensuring that government funds are spent properly.” DOJ recovered more than $6.8 billion in FCA settlements and judgments in fiscal year 2025–the highest single-year total since the Act’s passage. For the first half of 2026, the figure totaled more than $1.8 billion.

DOJ’s FCA enforcement has focused on several areas–including fraudulent Medicare and Medicaid billing, false claims tied to Paycheck Protection Program loans, and false cybersecurity certifications by defense contractors. Military procurement fraud accounted for nearly $634 million in DOJ recoveries in fiscal year 2025. DOJ has also expanded FCA enforcement into new territory–launching its Civil Rights Fraud Initiative in May 2025 to pursue federal fund recipients that knowingly violate anti-discrimination laws through DEI programs. The recent Shumate memorandum, meanwhile, directed U.S. Attorneys’ Offices to accelerate review of qui tam actions involving benefits fraud.

DOJ has also announced efforts at fairness in enforcement. Consistent with messages from other agencies, DOJ has stated that it wants to avoid regulation by enforcement by limiting the reliance on sub-regulatory guidance. Similarly, DOJ now requires its attorneys to review every FCA case it declines to determine whether they should dismiss the case outright, rather than leave it to relators to pursue a qui tam action.

Revision 1: Limiting the role of sub-regulatory guidance

The first revision to the Justice Manual reinstates and expands the principle that sub-regulatory guidance documents–such as agency manuals, FAQs, and policy statements–cannot impose legal obligations beyond those established by statute or regulation. Under the revised manual, DOJ must base enforcement actions on violations of binding legal or contractual requirements rather than noncompliance with nonbinding agency guidance. Associate Attorney General Stanley Woodward framed the revision as a commitment to fair notice and the rule of law, stating that “[t]he Department of Justice should enforce the law, not make law through enforcement.” Then-Associate Deputy Attorney General Paul Perkins similarly emphasized that DOJ would focus its resources on “holding fraudsters accountable for violations of binding legal or contractual obligations.”

The revision traces back to the first Trump administration–which adopted a similar approach through a November 2017 memorandum by Attorney General Jeff Sessions and a January 2018 memorandum by Associate Attorney General Rachel Brand. The Biden administration rescinded both memoranda in 2021. Although Attorney General Pam Bondi revived the prohibition in February 2025, the recently announced revision gives it a potentially more permanent home in the Justice Manual.

Despite the revision, guidance documents may still play an important role in FCA actions. The Justice Manual makes clear that DOJ may still cite guidance documents for certain purposes, such as evidence of a party’s knowledge of a legal requirement. 

Revision 2: Clarifying qui tam dismissal authority

The second revision to the Justice Manual clarifies when DOJ will exercise its authority to seek dismissal of qui tam actions that do not serve the interests of the United States. Qui tam actions comprise a significant percentage of FCA cases filed. When DOJ declines to intervene in a qui tam action, the relator may proceed independently–but the government retains authority under 31 U.S.C. § 3730(c)(2)(A) to seek dismissal over the relator’s objection. The revised Justice Manual now directs DOJ attorneys to assess whether the government’s interests warrant dismissal in every declined case. The prior version of the Justice Manual instructed attorneys only to “consider” seeking a dismissal. 

Assistant Attorney General Shumate tied the revision to efficient resource allocation, stating that “[e]valuating qui tam cases for potential dismissal ensures our enforcement efforts remain aligned with [U.S.] interests and promotes the efficient use of government resources.”

The Justice Manual revision builds on a January 2018 memorandum directing DOJ attorneys to evaluate whether dismissal would advance the government’s interests. That memorandum identified seven factors for attorneys to weigh–including “[c]urbing meritless actions,” “[p]reventing parasitic or opportunistic” suits, and “[p]reserving government resources.” The September 18 Justice Manual revision retains those seven factors, but makes the dismissal assessment mandatory rather than discretionary.

Key takeaways

• FCA enforcement decisions no longer turn on informal agency guidance. Under the revised Justice Manual, DOJ must base enforcement actions on violations of binding legal contractual requirements or formal agency regulations, rather than noncompliance with nonbinding, informal agency guidance. Companies should still treat agency guidance as an important input for compliance programs, but the revision limits DOJ’s ability to use that guidance as a stand-alone basis for enforcement. Parties may need to be prepared to substantiate an argument that certain guidance was not intended to be mandatory and thus should not be the basis for an FCA action.
• Qui tam relators face new headwinds. The revised Justice Manual’s mandatory dismissal assessment creates a meaningful checkpoint for non-intervened cases. Relators must now account for the possibility that DOJ will actively seek to end cases it views as meritless. Companies facing non-intervened qui tam suits should consider engaging DOJ early to present the case for dismissal.
• FCA enforcement remains a top priority. The Justice Manual revisions may narrow how DOJ pursues FCA cases, but they do not signal a retreat. DOJ’s simultaneous investment in a 500-person Fraud Division, its Department-wide self-disclosure policy, and its record-setting recoveries make clear that the Trump administration views the FCA as a central enforcement tool.