The National Fraud Enforcement Division’s New Whistleblower Incentive Program

The pilot offers eligible individual tipsters $10,000 to $30,000 when their information leads DOJ to obtain and unseal an indictment, information or complaint. In announcing the pilot, DOJ explained that its goal was to provide up-front awards at the charging stage rather than when matters are fully resolved, which is when existing government reward programs compensate whistleblowers. Nonetheless, a WHIP tipster may also remain eligible for a later, larger award under these other programs.

DOJ’s stated goal in designing the WHIP pilot was to encourage timely, detailed tips by providing greater certainty about the timing of whistleblower payments. However, whether a whistleblower qualifies for a payment is a matter of the DOJ’s sole discretion, as are the amount and timing of any payment. President Trump has separately indicated that he will be the final decisionmaker on who receives WHIP awards.

What does WHIP cover and who can qualify?
WHIP covers federal health care offenses and related crimes involving health care benefit programs, patients or others in the health care industry. It also covers fraud involving programs or benefits administered by the U.S. Departments of Agriculture, Labor, Health and Human Services, Housing and Urban Development, Education, Veterans Affairs, and War, and the Small Business Administration. The fraud need not directly target a federal program, so long as the program ultimately suffers some loss. And no minimum loss amount is required.

Initially, WHIP will prioritize hospice, home health care, day care and special-services fraud.

The WHIP launch event—which occurred at the White House—announced that the program’s first payment was a $10,000 award to influencer Nick Shirley, who produced a video alleging that Minnesota childcare centers were collecting federal subsidies without providing care. The video featured a childcare center owner who later pleaded guilty to wire fraud and conspiracy.

The three-year pilot eventually may expand to cover additional fraud categories, potentially including other types of offenses within NFED’s purview, including trade or tax crimes.

WHIP’s eligibility requirements include the following:

• The disclosure must be submitted in writing and voluntarily, i.e., not in response to a government inquiry, a preexisting reporting obligation or a threat of imminent disclosure.
• The information must be original, truthful and complete; and it must be sufficiently detailed to open or redirect an investigation.
• The disclosure must lead to DOJ obtaining and unsealing an indictment, information or a complaint.
• The whistleblower must be an individual and must cooperate fully with DOJ, including by testifying. Individuals who meaningfully participated in the fraud are ineligible, though DOJ may, in its discretion, consider awards for minimal participants.
• The information cannot be obtained through privileged communications or through officer, director, compliance, audit or investigative roles. But these exclusions generally do not apply if disclosure is needed to prevent imminent harm or obstruction, or if at least 120 days have passed since the issue was reported internally.

What does WHIP mean for companies?
WHIP gives DOJ a new tool to pursue the Administration’s priorities in health care and government-program fraud. By offering awards at the charging stage, without requiring substantial recoveries, the program seeks to generate tips that might otherwise go unreported. Companies operating in the covered sectors should anticipate additional scrutiny, including investigations prompted by allegations they have not received internally.

WHIP also raises questions about access to the benefits of voluntary self-disclosure. The Corporate Enforcement Policy (CEP) generally requires that disclosed misconduct not already be known to DOJ. Although the CEP includes an exception for whistleblowers who report both internally and to DOJ, the WHIP guidance does not explain how that exception applies to this program. A company that independently discovers and promptly discloses misconduct may therefore face uncertainty about its eligibility for a declination if, without its knowledge, a whistleblower has already reported to DOJ.

Companies should assess whether their compliance controls address the fraud risks WHIP targets and whether credible concerns are escalated promptly to allow timely investigation, appropriate remediation and an informed decision about potential disclosure. Accessible reporting channels, protection against retaliation and a consistent response to allegations remain essential, alongside employees’ ability to report directly to the government. Effective monitoring and timely investigation can help companies identify misconduct, limit ongoing harm and make informed disclosure decisions even when they do not know whether DOJ has received a tip.