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HARRISBURG — For more than two decades, state lawmakers from both parties have pushed for a new law to crack down on fraudulent government spending and encourage whistleblowers to come forward.

Each time, powerful health care and business interests stunted those efforts, arguing the legislation would lead to a deluge of frivolous lawsuits and put struggling rural hospitals out of business.

Supporters hope the proposal finally makes it across the finish line this year.

Last summer, a bill that would give the state a new way to target fraud passed the state House with broad bipartisan support, but it has not advanced in the state Senate. Democratic Gov. Josh Shapiro highlighted the issue in his budget address earlier this month, saying the law would allow Pennsylvania to “collect additional damages and recoup more state dollars that would otherwise be lost to fraud.”

“Let’s finally get it done,” he said.

The proposed law would mirror the federal False Claims Act, which allows whistleblowers to file lawsuits on the government’s behalf and receive a share of the money that’s recovered in damages and penalties, or paid out as a settlement. Federal prosecutors say the law is one of their most powerful tools against fraud.

In the most recent fiscal...

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