As the U.S. Department of Justice (DOJ) continues to expand its use of the False Claims Act (FCA) to advance the Trump administration’s policy priorities, immigration has emerged as the most recent focus area. The increased risk for federal contractors and recipients of federal funds takes several forms.

1. E-Verify. Two noteworthy FCA cases this year reflect a crackdown on federal contractors’ failure to use E-Verify to confirm that their employees were eligible to work in the United States. DOJ announced in September that Bayonne Drydock and Repair Corporation agreed to pay more than $4 million to resolve allegations that it violated the FCA by employing immigrants lacking work authorization for work under two federal contracts. This settlement follows an announcement in January — during the final days of the Biden administration — that a different federal contractor had agreed to pay just over $1 million to resolve similar allegations. Both cases alleged that the contractors failed to comply with Federal Acquisition Regulation 52.222-54, which requires employers to electronically confirm employees’ employment eligibility in the federal E-Verify database. These settlements underscore the importance of government contractors monitoring their compliance — and their subcontractors’ compliance — with E-Verify requirements.
2. PRWORA. Potential FCA exposure also might arise from the Trump administration’s July announcement that it was effectively rescinding longstanding guidance...

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