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Friday, November 6, 2026

Whistleblowers Won’t Catch Every Fraudster - The Debt Dispatch

The Wall Street Journal recently reported on the Trump administration’s new whistleblower program, which would offer financial rewards of up to $30,000 to people who provide tips about fraud in government programs.

But as I point out in my Letter to the Editor, existing whistleblower programs have a mixed record and are prone to cronyism and profiteering. I recommend a different approach:

Preventing improper payments is more effective than chasing money that is already gone. Expanding the [Do Not Pay] system’s access to relevant data and requiring federal agencies to use it consistently could prevent further losses.

Congress should also pursue structural reforms that give states a bigger financial stake in curbing fraud in federal programs they run. Real accountability means changing the incentives and structures that invite waste and abuse—not paying people to expose it after the damage is done.

Read the full letter on Cato.org here.



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