Buried deep in the 2025 National Defense Authorization Act is a change to federal law that could breathe new life into an often-neglected civil fraud enforcement tool in the coming year. The newly anointed Administrative False Claims Act (AFCA) renames and revitalizes the Program Fraud Civil Remedies Act of 1986 (PFCRA). Introduced by U.S. Senator Chuck Grassley (R-IA), a champion of the False Claims Act (FCA), the legislation is heading to President Biden’s desk where it is expected to be signed into law within the next week. Under the new law, administrative agencies will soon have expanded powers to pursue and settle up to $1 million in fraud claims and other allegations of false statements made to the Government.
Legislative Background
The Administrative False Claims Act will strengthen and expand the reach of the PFCRA, making the frequently overlooked law more enticing for agency use. Enacted almost 40 years ago, the PFCRA provides a mechanism for administrative agencies, with U.S. Department of Justice approval, to pursue false claims and statements. It applies to false claims of $150,000 or less and imposes double damages and penalties up to $13,946 for each claim. The PFCRA also gives contracting and other administrative agencies the power to conduct their own investigations and settle claims. Unlike the FCA, there is no qui tam provision that would allow a whistleblower to bring a claim in the name of the Government. Notably, the PFCRA process has gone largely...
By Daniel Dale and Tami Luhby, CNN (CNN) — President Donald Trump is using false claims to promote his massive domestic policy bill. In a White House speech on Thursday, Trump falsely claimed Medi...