A new U.S. fraud tip program backed by $25 million in Treasury funding could reward informants before conviction, but President Donald Trump's account of its terms conflicts with Justice Department rules.
Trump and Vice President JD Vance announced the initiative Oct. 20. The Justice Department said Treasury has committed $25 million to the pilot, which has an initial three-year term. Its written terms anticipate awards of $10,000 to $30,000 for each distinct eligible tip.
Under those terms, a tip must lead to criminal charges. The department may make a payment around the time charges are filed, generally once they are public; a conviction is not required. Awards remain discretionary, and the Justice Department alone decides whether to grant them.
Trump described different terms at the announcement. He said tipsters would receive 1% of the fraud identified through their information and that he would decide between competing claims; when CBS News asked whether criminal charges were necessary, he said they were not. The published rules contain no percentage formula, tie awards to charges and give the department authority over payment decisions.
The pilot covers specified federal health care offenses and fraud involving programs or benefits administered by agencies listed in its rules. The Justice Department is prioritizing information about hospice, home health care, day care and special services. Applicants must submit original, truthful and complete information voluntarily in writing and cooperate with investigators.
People who meaningfully participated in the fraud are generally ineligible, although the detailed rules provide a limited exception for minimal participants. The department directs prospective applicants to an online intake form.
The program follows Trump's March 16 executive order establishing the Task Force to Eliminate Fraud, which Vance chairs. The Justice Department says payment at the charging stage is intended to encourage people to come forward sooner than they might under programs that wait for cases and appeals to end. An early award does not rule out a later award under another program.
