Contributors

DOJ’s Civil Division recently issued a memorandum prioritizing the expedited review of whistleblower-initiated False Claims Act (“FCA”) complaints targeting alleged fraud in state-administered programs receiving federal funding. This reform is designed to expedite FCA “meritorious qui tam cases, maximize finite enforcement resources, and focus on dismantling sophisticated fraud schemes that exploit taxpayer-funded programs,” including housing, food, medical care, and cash assistance. 

The new policy signals materially shorter response timelines, increased likelihood of parallel civil and criminal scrutiny, and heightened enforcement risks.

Background and Policy Context

President Trump’s Executive Order, Establishing the Task Force to Eliminate Fraud, directed DOJ to promote meritorious qui tams and ensure their prompt review. The policy also aligns with DOJ’s broader efforts to enhance enforcement efficiency, including the launch of the National Fraud Enforcement Division (see our alert here). 

These developments reflect a broader DOJ strategy to centralize, accelerate, and coordinate fraud enforcement across civil and criminal components. Notably, FCA recoveries surpassed $6.8 billion in 2025 – a record-setting year – evidencing DOJ’s commitment to aggressive FCA enforcement.

Key Features of the New Policy

Significantly Shortened Review Window 

According to the new policy, “DOJ will prioritize and…complete its review of new benefits fraud qui tam actions within the 60-day period described in 31 U.S.C. § 3730(b)(4), but no later than 120 days.” 

At the conclusion of its review, DOJ will adopt one of three paths:

  1. Permit the relator to proceed with the litigation, subject to government supervision and ultimate control;
  2. Continue government investigation where further development is warranted; or
  3. Seek dismissal under 31 U.S.C. § 3730(c)(2)(A) where allegations lack sufficient specificity or are legally deficient.

Factors Allowing Relators to Proceed

The memorandum identifies several factors relevant to whether DOJ will permit a relator to proceed promptly with litigation. 

Relevant considerations include whether:

  • The complaint alleges conduct that, if true, constitutes an FCA violation;
  • The allegations are supported or corroborated by available information, including data analytics, agency data, or insider knowledge;
  • The alleged scheme is not novel or complex;
  • Potential damages fall below the $10 million settlement authority delegated to the Director of Civil Fraud; and
  • Aggravating factors are present, such as beneficiary harm, ongoing misuse of federal funds, or concealment or deceit.

Expedited Further Investigation

Where DOJ determines further investigation is warranted, the matter will be handled on an accelerated timeline. The Fraud Section and the relevant U.S. Attorney’s Office will coordinate assignment and case strategy, with an initial investigative window of 120 days.

During this period, DOJ will, among other steps:

  • Develop a structured investigative plan;
  • Promptly issue Inspector General subpoenas and/or Civil Investigative Demands; and
  • Conduct early witness interviews.

Defendants will be required to respond to information requests within defined timeframes. If a defendant fails to comply without justification, DOJ may initiate enforcement actions to compel compliance. Extensions beyond the initial 120-day period require approval from the Civil Division.

Key Takeaways for Companies

  • Compressed timelines for response and risk assessment.  Companies operating in or servicing federally funded benefits programs should expect significantly faster government action on whistleblower complaints. The accelerated review framework reduces the time available to assess allegations, conduct internal investigations, engage with DOJ, and prepare defenses before litigation advances.  Companies should proactively evaluate FCA exposure, strengthen internal reporting and escalation mechanisms, identify and remediate potential vulnerabilities, and ensure readiness to respond to expedited government inquiries.
  • Greater relator leverage. The policy may enable relators to proceed with litigation earlier and more frequently in appropriate cases, particularly those that are less complex or lower in value.  This shift could reduce the window for companies to engage with DOJ before litigation progresses and increase the strategic importance of early case assessment and response.
  • Heightened focus on aggravating factors. Companies should pay close attention to the aggravating factors DOJ will consider, including beneficiary harm, ongoing misuse of federal funds, and concealment or deceit. Demonstrating good-faith compliance efforts, prompt self-correction of identified issues, and cooperation with government inquiries may help mitigate exposure under this heightened enforcement posture.
  • Parallel civil and criminal exposure. New benefits “fraud matters will be promptly referred to the Criminal Division and/or the National Fraud Enforcement Division” for potential criminal enforcement.  As a result, companies should expect information shared with one DOJ component to be rapidly disseminated across others, increasing the likelihood of parallel investigations and coordinated enforcement activity.

Womble Bond Dickinson (US) LLP’s White Collar Defense and Criminal Investigations Team navigates domestic and international clients in all manner of white collar, regulatory, corporate and congressional investigations. Our team includes a distinguished roster of veteran defense attorneys, former federal prosecutors and U.S. Attorneys who served at the highest levels of the Department of Justice and at leading United States Attorneys’ Offices. Our team includes Chambers Ranked (Band 1) lawyers and alumni of the U.S. Department of Justice, the SEC’s Enforcement Division, the U.S. Senate, House of Representatives, and in-house compliance specialists of publicly traded companies.