Significant False Claims Act Activity Predicted in Health Care, Defense and Importing Industries during 2026

Times and presidential administrations change, but one unfortunate constant is that unscrupulous individuals and businesses keep trying to profit by committing fraud against the government. When this occurs, it is often up to honest whistleblowers to report the misconduct. In many cases, the federal False Claims Act (FCA) offers a special incentive to people who identify a problem that leads to a monetary recovery. By filing a qui tam lawsuit, a whistleblower, or “relator” in legal parlance, might be able to collect a significant share of what the government obtains from the party that engaged in fraud. 

Over the 2025 fiscal year, the Department of Justice reports that FCA settlements and judgments totaled nearly $7 billion. This represents a record figure for a single year, and is based in part on 1,297 qui tam cases filed during fiscal 2025, another high-water mark. As a reward for their effort and honesty, relators in successful qui tam actions typically receive between 15 and 30 percent of what is paid to the government. 

There should be similar activity under the FCA during 2026, with several industries particularly prone to whistleblower claims, such as:

  • Healthcare — Medicare and Medicaid fraud have cost the country billions of dollars, and dishonest operators in the healthcare industry keep finding new ways to misappropriate funds from these government programs. Often, a timely tip from someone inside the office where misconduct is occurring is the only way to recover illegally obtained funds. 

  • Defense — In 2025, major increases to the national defense budget were approved, and contractors sometimes believe that the system is too large and unwieldy to catch every instance of invoice padding. Reporting misrepresentation not only prevents the waste of taxpayer funds, but protects members of our armed forces. 

  • Import/export — Tariffs and other developments relating to international trade could lead companies in the import/export business to engage in fraud. A diligent employee might spot deception regarding the source of a product or how it was acquired.   

Whether you work in one of these industries or another type of job, blowing the whistle on misconduct is not just the right thing to do, but could lead to a significant financial award for you. Kardell Law Group has extensive experience successfully representing whistleblowers in qui tam claims. Please call or contact us online if you are aware of potential fraud against the government.