Trump Claims Authority to Decide DOJ Fraud Whistleblower Rewards

President Donald Trump said Tuesday that he could personally decide how financial rewards are distributed under a new Department of Justice program designed to encourage Americans to report suspected fraud involving the federal government. The initiative, announced alongside Vice President JD Vance at the White House, offers eligible tipsters up to $30,000 when their information advances a criminal case.

Trump proposed taking charge of disputes when multiple people submit information about the same alleged wrongdoing. However, the Justice Department's website states that the department retains sole discretion over reward decisions, leaving the extent of Trump's proposed role unclear.

Explaining his proposal to reporters, Trump described himself as the person who would serve as “the arbitrator” of disputes over rewards.

“I was just thinking, when you do these things, sometimes there’s a dispute as to who turned ’em in and who didn’t turn ’em in, who’s supposed to get what and when, you know,” Trump told reporters.

He then outlined how he would handle disagreements and determine eligibility, drawing laughter from those present.

“So I am going to do something, which I think people will like, I will be the arbitrator of all of these decisions. In other words, I’ll determine whether or not the person is deserving, and I will be very generous, believe me,” Trump said.

Trump also addressed how quickly successful tipsters could receive payments, suggesting that he would resolve competing claims himself.

“You’ll get your money immediately, but I’ll make the determination. So if two people are fighting over it, maybe they’ll split it or maybe whatever, but I’ll make that determination. It’ll be done expeditiously and fairly,” Trump said.

The Justice Department describes its authority over the program as “sole discretion.” The department's published rules cap rewards at $30,000 for qualifying information provided during the “charging stage of a criminal case.” The Guardian said it had requested comment from both the Justice Department and the White House.

Trump's announcement also included a suggestion that tipsters could receive a share of the fraud uncovered. He indicated that participants might earn “millions and millions” of dollars, although the department's stated reward limit is substantially more restrictive than that description suggests.

Vance, who leads the White House task force focused on eliminating fraud, said the new initiative addresses gaps in existing whistleblower protections. Under the False Claims Act, people who bring lawsuits against individuals or companies accused of defrauding the government can receive 15% to 25% of financial penalties if the government intervenes in the case and pursues it.

Vance argued that the existing law does not cover most suspected fraud identified within federal government operations.

“Over 99% of the fraud that we’re finding in the federal government isn’t covered by the False Claims Act,” Vance said.

The new program is intended to provide an additional route for reporting suspected fraud and offers the possibility of compensation earlier in the investigative process, rather than requiring a case to produce substantial fines or asset forfeiture. Vance said he and Trump developed the initiative to encourage more people to come forward with information.

He cited conservative influencer Nick Shirley, who went viral earlier in the year after accusing Somali-run childcare centers in Minnesota of widespread fraud, as an example of the type of reporting that helped motivate the initiative.

Trump also encouraged journalists to investigate suspected fraud and submit information through the program, provided their news organizations permitted them to accept the money.

“We’re going to let the reporters partake because you know a lot of things that are happening,” Trump said.