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US Launches $25 Million Fraud Whistleblower Programme, Offers Rewards Up to $30,000

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Washington, October 21, 2026 (Yes Punjab News)

The United States has launched a $25 million whistleblower programme offering rewards of up to $30,000 to individuals whose information helps federal prosecutors bring criminal fraud charges, as the Trump administration intensifies efforts to detect the misuse of taxpayer money.

The Justice Department announced the Fraud Whistleblower Incentive Program (WHIP) on Tuesday. The initiative offers eligible informants rewards ranging from $10,000 to $30,000 for original information leading to criminal charges involving specified categories of fraud.

The Department of the Treasury has committed $25 million to fund the initiative, which will be administered by the Justice Department’s National Fraud Enforcement Division.

Attorney General Todd Blanche said the programme would encourage people with knowledge of fraudulent activities to report wrongdoing and help protect public funds.

“Protecting the American people from fraud remains a top priority of the Department of Justice,” Blanche said.

Under the new system, eligible payments can be made after criminal charges are filed and made public, rather than requiring individuals to wait for a conviction, forfeiture proceedings or the conclusion of appeals. The department said the mechanism was designed to encourage timely disclosures and help investigators identify fraudulent schemes before further public money was lost.

Assistant Attorney General Colin McDonald, who heads the National Fraud Enforcement Division, said the initiative would expand the government’s ability to obtain information about criminal wrongdoing.

To qualify, individuals must voluntarily provide original, specific, truthful and timely information that contributes to criminal charges. Those who actively participated in the fraud generally cannot receive rewards.

A whistleblower may become eligible when the information leads prosecutors to obtain and unseal an indictment or criminal complaint. However, payments are not guaranteed, as the Justice Department retains discretion over eligibility and awards.

Unlike some other federal whistleblower schemes, the programme does not require prosecutors to recover a minimum amount of money before considering an early-stage reward. Recipients may also remain eligible for additional awards under separate government programmes if their information later leads to substantial financial recoveries.

The initiative follows an October 1 directive from McDonald calling for stronger incentives to encourage credible fraud reporting. According to the department, the programme was developed in 19 days and will initially operate as a three-year pilot.

Members of the public can submit information through a federal fraud-reporting portal. The announcement comes as President Donald Trump and Vice President JD Vance have made tackling fraud involving federal programmes a priority of the administration.

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