President Trump is rolling out a $25 million Fraud Whistleblower Incentive Program administered by the Department of Justice, offering payments of up to $30,000 for fraud tips that result in a successful prosecution or government enforcement action, according to USA Today. Trump plans to announce the program at a White House event on Oct. 20.
Nick Shirley, a conservative influencer, will receive the first $10,000 fraud whistleblower check for a viral video alleging day care fraud in Minnesota. A woman featured in Shirley's video was later charged with fraud.
How the program fits Trump's midterm strategy
The initiative marries two efforts Trump has emphasized during his midterm campaign blitz: fighting fraud and distributing government funds directly to Americans.
Trump has seized on a sprawling fraud case in Minnesota involving dozens of people, many U.S. citizens of Somali descent, frequently lashing out at the Somali American community during rallies and tying fraud to his campaign against immigrants. At an Oct. 19 rally in Kansas, Trump said of Somalis: "They come here with low IQs and no money and they get rich."
He also targeted Rep. Ilhan Omar, a Minnesota Democrat and American citizen born in Somalia. Federal agents searched Omar's home this month as part of an investigation aimed at revoking her citizenship and deporting her, USA Today reported.
White House spokeswoman Lauren Bis said: "Every day, President Trump's Task Force to Eliminate Fraud is zeroing in on the rampant abuse of taxpayer dollars and giving Americans the accountability they deserve."
Vance's anti-fraud push and visa investigations
Vice President JD Vance was tapped to lead a new anti-fraud initiative earlier this year and has been traveling the country promoting the effort, accusing Democrat-led states of not doing enough to stop fraud in government programs such as Medicaid.
Earlier this month, Vance announced that Microsoft and seven other companies were suspended from a program that allows businesses to seek permanent residency in the United States for foreign workers, accusing them of abusing the system. Labor Department Inspector General Anthony D'Esposito said he is conducting an investigation into "visa fraud" at nine universities, according to USA Today.
Existing whistleblower protections already in place
The Trump administration's new program comes as whistleblower compensation already exists under federal law. The False Claims Act allows individuals to file civil lawsuits on the government's behalf against those suspected of fraud and potentially "receive a portion of the government's recovery," according to the Justice Department.
Congressional Republicans have amplified Trump's fraud push. House GOP leaders raised the issue repeatedly over the summer, with Republicans floating anti-fraud programs as a key aspect of a party-line bill. The House Oversight and Reform Committee grilled Minnesota's governor and attorney general in a heated hearing in March about the fraud scandal in Minnesota's social services programs.
Part of broader election-year spending announcements
The fraud whistleblower program is one of several direct-payment initiatives Trump has announced ahead of the midterms. He promised $5,000 to every adult American if Republicans maintain control of Congress, announced $500 rebate checks for Americans he said were overcharged for Affordable Care Act health policies, and promised $90 payments to 21 million seniors.
During a rally in Kansas on Oct. 20, Trump announced an $8 billion program to help farmers offset the cost of diesel fuel, which has risen to a record high as the Iran war has disrupted global energy markets.
The focus on fraud comes as Trump and GOP leaders have struggled to sell their economic agenda ahead of an election where polling indicates cost of living is a top concern, USA Today reported.