DOJ’s National Fraud Enforcement Division launches Fraud Whistleblower Incentive Program

The Department of Justice (DOJ) and its National Fraud Enforcement Division (Fraud Division) recently announced the creation of the Fraud Whistleblower Incentive Program (WHIP), which DOJ described as “the first ever whistleblower rewards program that pays an up-front award for tips leading to criminal charges.” WHIP is the latest step in the rapid build-out of the Fraud Division, which DOJ established in April 2026 to lead federal fraud enforcement in cases involving the misuse of taxpayer dollars and other impacts on government programs. This announcement comes not long after Assistant Attorney General Colin M. McDonald’s October 1 memo on corporate enforcement—discussed in more detail in an update we published earlier this month—directing Fraud Division leadership to “design and implement policies and programs that appropriately incentivize whistleblowers.” WHIP is subject to an initial three-year term, and the Department of the Treasury is committing $25 million to its implementation. WHIP is currently limited to fraud involving hospice, home health care, day care, and special services, as well as fraud involving certain federal funds, but DOJ has signaled that the program could expand to other areas.

Key features of WHIP

To qualify for WHIP, whistleblowers must meet the following basic criteria, which we discuss in greater detail below:

• Only individuals—not companies—are eligible for the program.
• The individual’s submission must be voluntary, original, timely, truthful, and complete, and full cooperation with DOJ is required.
• The information must pertain to defined subject matter areas.
• The information must lead to criminal charges relating to the defined subject matter areas.
• The information must be provided by individuals who did not meaningfully participate in the fraud.

Subject matter. Reward payments pursuant to WHIP are limited to: (1) federal health care offenses and related crimes involving health care benefit programs or fraud against patients or others in the health care industry; and (2) fraud on programs or benefits administered by a variety of federal agencies, including the Department of Agriculture, the Department of Labor, the Department of Health and Human Services, the Department of Housing and Urban Development, the Department of Education, the Department of Veterans Affairs, the Department of War, and the Small Business Administration. The program places particular emphasis on submissions involving hospice, home health care, day care, and special services fraud. DOJ notes the program could be expanded to include additional categories in the future.

Early-stage awards. Unlike most government whistleblower programs, where payments are made to eligible participants only after final resolution of a matter (including forfeiture and appeals), WHIP pays an anticipated $10,000 to $30,000 award at or around the time criminal charges are filed (but no award is generally payable while charges remain under seal). Awards, including the amount within the specified range, are entirely discretionary and are not appealable or subject to judicial review.

Voluntary participation. An individual’s submission must be voluntary. A submission is voluntary if it occurs:

• before any request relating to the subject matter of the submission is directed to the individual (or anyone representing him or her) by DOJ in connection with any investigation, by federal law enforcement, or by a civil enforcement agency regarding the same misconduct;
• where the individual has no preexisting obligation pursuant to an agreement in connection with a criminal prosecution or civil enforcement action to report the information to any federal law enforcement or civil enforcement agency; and
• in the absence of any government investigation or threat of imminent disclosure to the government or the public. 

Notably, the program’s FAQs state that where a company receives a subpoena, its employees who are not personally obligated to provide information pursuant to that subpoena may still voluntarily provide information and potentially qualify for a reward. It will be important to see how DOJ assesses voluntariness where an individual is aware of an investigation directed at his or her employer but not the individual personally.

No awards for individuals who “meaningfully participated”. Individuals who “meaningfully participated” in the reported criminal activity, including by directing, planning, initiating, or knowingly profiting from it, are ineligible for WHIP, subject to a narrow exception for “minimal participants” (i.e., individuals whose role in the reported scheme was sufficiently limited that they could be described as “plainly among the least culpable of those involved in the conduct of a group”). DOJ may also deny an award based on a tipster’s management role, including where the tipster contributed to compliance failures or ignored red flags. 

Original information. Whistleblowers must provide “original information” that is derived from their independent knowledge and experiences (i.e., not derived from publicly available sources) or independent analysis of information that may be publicly available but reveals information that is not generally known to the public. The information must also not be already known to DOJ. Information is generally not “original” if obtained through privileged communications or from an internal investigation, or if the employee learned of the misconduct through their involvement in the company’s investigative or audit process.

Stacking with other programs. WHIP participants remain eligible for larger, later-stage awards under other government programs, including the Criminal Division’s Corporate Whistleblower Awards Pilot Program, if their tips ultimately lead to significant forfeiture in overlapping program areas.

Opportunity for multiple awards. Whistleblowers may receive one award for each distinct tip, and multiple tipsters may be rewarded in the same matter. 

Anonymous submissions. Anonymous submissions are permitted only through an attorney.

Retaliation and impeding communications. DOJ will consider retaliation against a whistleblower, as well as any effort to impede an individual from communicating with DOJ (including by enforcing confidentiality agreements), in assessing a company’s cooperation credit and compliance program, and may take enforcement action. DOJ also states that it may communicate directly with a company employee who has initiated contact with DOJ, without seeking the consent of the company’s counsel. 

WHIP joins several existing rewards programs

WHIP joins existing legal frameworks as well as a growing set of DOJ whistleblower initiatives. Under the False Claims Act, private citizens who successfully bring qui tam suits alleging fraud on the federal government may receive a portion of the recovery, which can be substantial. The Criminal Division’s Corporate Whistleblower Awards Pilot Program, which launched in August 2024 and was expanded in May 2025 to cover additional priorities of the administration, rewards individuals with a portion of forfeited assets. The Antitrust Division’s whistleblower rewards program, launched in July 2025, offers awards of up to 30% of criminal fines recovered in cases affecting the U.S. Postal Service where recoveries reach at least $1 million. 

Key takeaways

There are several noteworthy takeaways from the announcement:

• DOJ continues to encourage whistleblowers to report fraud, even if it does not fit in one of the categories covered by WHIP. The FAQs to the new program instruct that an individual who reports fraud outside the defined subject matter areas may still be eligible for the $10,000 to $30,000 reward if the tip helps DOJ uncover a crime within one or more of the covered areas. Whistleblowers may also qualify for a reward under another program. 
• The direct impact on large companies may be limited. The program prioritizes hospice, home health care, day care, and special services fraud, and may be more likely to prompt reports of suspected fraud by individuals or small businesses rather than by large corporations. But companies that receive federal funds or participate in federal health care programs should account for the impact of these new incentives when considering self-disclosing misconduct to DOJ. In addition, DOJ has signaled that WHIP may expand to additional categories of fraud, which may impact a much broader set of companies.
• DOJ continues to build out the Fraud Division. In roughly six months, DOJ established the Fraud Division, it issued enforcement priorities and a corporate enforcement memo, and the Fraud Division has now launched its own whistleblower program. These types of efforts usually signal that investigations and enforcement will follow.