Dec 01, 2014
By U.S. Senator Chuck Grassley
Holding wrongdoers to account helps to uphold the public trust held by government, recover hard-earned tax dollars lost to fraud and strengthen our system of voluntary tax compliance. A federal law I beefed up nearly three decades ago has helped the U.S. Justice Department recoup nearly $45 billion through the False Claims Act. The law reminds me of the little engine that could.
Specifically, my bipartisan 1986 qui tam amendments allow citizens to file suit against wrongdoers on behalf of the U.S. government. In fiscal year 2014 alone, this fraud-fighting provision was credited for returning nearly $3 billion back to the federal treasury.
The vast size and scope of the federal bureaucracy paints a tempting target for those looking to line their pockets at taxpayer expense. Fortunately, the updated False Claims Act paints a bulls-eye on the backs of rip-off artists who seek to siphon dollars out of the federal funding stream, from grants, contracts, loans, subsidies, benefits, disaster assistance and other funds appropriated to serve the public.
Congress controls the purse strings. Lawmakers have a constitutional duty to guard against fraudulent spending and mismanagement. I’m committed to squeezing the most value out of every tax dollar sent to Washington. I have voted against giving Congress a blank check by raising the debt ceiling. Likewise, I have supported efforts to sequester out-of-control federal spending. Our $18 trillion national debt gives Iowa taxpayers at least 18 trillion reasons to demand better fiscal management and stewardship of the revenue they send to Washington.
Strengthening anti-fraud measures, such as the False Claims Act and whistleblower protection laws, are proven tools to reel in those who cheat the system and to deter untold more fraud from bilking taxpayers in the first place. Consider that every dollar lost to fraud is one less dollar for paying down the debt, building roads and bridges, investing in medical research, and budgeting for tax relief.
As the likely incoming chairman of the Senate Judiciary Committee in the 114th Congress, I will continue to train my sights on ways to empower whistleblowers and protect against misguided assaults on the Justice Department’s #1 fraud-fighting weapon. That includes shutting down proposals for loopholes that federal health care, defense and other federal contractors would like to use to water down these anti-fraud tools with an ineffective system of self-reporting.
Whistleblowers provide a crucial check on waste, fraud and abuse. Let’s consider the facts:
√ For the first year ever, the annual recovery from the False Claims Act exceeded $5 billion in fiscal 2014.
√ The number of lawsuits filed under the qui tam provisions exceeded 700 for the second year in a row.
√ Prior to the 1986 Grassley amendments, the False Claims Act delivered a fraction of today’s recovery, returning approximately $40 million annually. At that rate, Uncle Sam would have recovered $1 billion in the past 25 years. Thanks to the 1986 amendments, the Justice Department has recovered nearly 45 times that amount.
Congress cannot afford to let down its guard. A bloated bureaucracy requires all the eyes and ears we can get to report waste, fraud and abuse. As the reach of the federal government grows even more with implementation of the Affordable Care Act and many other programs within the vast reach of the federal bureaucracy, we need to encourage more disclosures of wrongdoing, not less. Upgrading incentives for whistleblowers to come forward is a time-tested way to derail 21st century bandits from riding Uncle Sam’s gravy train.
Dec 01, 2014
By U.S. Senator Chuck Grassley
Holding wrongdoers to account helps to uphold the public trust held by government, recover hard-earned tax dollars lost to fraud and strengthen our system of voluntary tax compliance. A federal law I beefed up nearly three decades ago has helped the U.S. Justice Department recoup nearly $45 billion through the False Claims Act. The law reminds me of the little engine that could.
Specifically, my bipartisan 1986 qui tam amendments allow citizens to file suit against wrongdoers on behalf of the U.S. government. In fiscal year 2014 alone, this fraud-fighting provision was credited for returning nearly $3 billion back to the federal treasury.
The vast size and scope of the federal bureaucracy paints a tempting target for those looking to line their pockets at taxpayer expense. Fortunately, the updated False Claims Act paints a bulls-eye on the backs of rip-off artists who seek to siphon dollars out of the federal funding stream, from grants, contracts, loans, subsidies, benefits, disaster assistance and other funds appropriated to serve the public.
Congress controls the purse strings. Lawmakers have a constitutional duty to guard against fraudulent spending and mismanagement. I’m committed to squeezing the most value out of every tax dollar sent to Washington. I have voted against giving Congress a blank check by raising the debt ceiling. Likewise, I have supported efforts to sequester out-of-control federal spending. Our $18 trillion national debt gives Iowa taxpayers at least 18 trillion reasons to demand better fiscal management and stewardship of the revenue they send to Washington.
Strengthening anti-fraud measures, such as the False Claims Act and whistleblower protection laws, are proven tools to reel in those who cheat the system and to deter untold more fraud from bilking taxpayers in the first place. Consider that every dollar lost to fraud is one less dollar for paying down the debt, building roads and bridges, investing in medical research, and budgeting for tax relief.
As the likely incoming chairman of the Senate Judiciary Committee in the 114th Congress, I will continue to train my sights on ways to empower whistleblowers and protect against misguided assaults on the Justice Department’s #1 fraud-fighting weapon. That includes shutting down proposals for loopholes that federal health care, defense and other federal contractors would like to use to water down these anti-fraud tools with an ineffective system of self-reporting.
Whistleblowers provide a crucial check on waste, fraud and abuse. Let’s consider the facts:
√ For the first year ever, the annual recovery from the False Claims Act exceeded $5 billion in fiscal 2014.
√ The number of lawsuits filed under the qui tam provisions exceeded 700 for the second year in a row.
√ Prior to the 1986 Grassley amendments, the False Claims Act delivered a fraction of today’s recovery, returning approximately $40 million annually. At that rate, Uncle Sam would have recovered $1 billion in the past 25 years. Thanks to the 1986 amendments, the Justice Department has recovered nearly 45 times that amount.
Congress cannot afford to let down its guard. A bloated bureaucracy requires all the eyes and ears we can get to report waste, fraud and abuse. As the reach of the federal government grows even more with implementation of the Affordable Care Act and many other programs within the vast reach of the federal bureaucracy, we need to encourage more disclosures of wrongdoing, not less. Upgrading incentives for whistleblowers to come forward is a time-tested way to derail 21st century bandits from riding Uncle Sam’s gravy train.