H.R. 5578: Expanding Whistleblower Protections for Contractors Act of 2025

This bill, known as the Expanding Whistleblower Protections for Contractors Act of 2025, aims to enhance the legal protections available to whistleblowers, particularly those working as contractors or subcontractors with the federal government. The bill seeks to safeguard these individuals from retaliation when they disclose certain types of wrongdoing or refuse to comply with illegal orders.

Key Provisions

• Definition of Protected Individuals: The bill defines “protected individuals” to include contractors, subcontractors, and employees of government entities involved with the Department of Defense and the National Aeronautics and Space Administration (NASA).
• Protection Against Retaliation: Protected individuals are prohibited from facing discrimination, including discharge or demotion, as retaliation for:
  • Refusing to comply with illegal orders that would violate laws or regulations related to federal contracts and grants.
  • Disclosing information that falls under categories of fraud, gross mismanagement, gross waste of funds, abuse of authority, or specific dangers to public health or safety.
• Clarification of Scope: The bill clarifies that the rights and protections provided cannot be waived through agreements such as predispute arbitration agreements. This aims to ensure that individuals maintain their rights to report misconduct without fear of losing their legal protections through contractual obligations.
• Accountability for Executives: Executive branch officials are barred from requesting that contractors engage in any retaliatory actions against protected individuals. Additionally, the bill calls for disciplinary action against officials who violate this provision.
• Enhanced Non-defense Contractor Protections: The bill extends similar protections to non-defense contractors working under federal contracts, ensuring they are equally protected from reprisals for whistleblowing activities.

Implementation and Oversight

The bill provides frameworks for agencies to enforce these protections and to propose disciplinary actions against any officials who request or engage in retaliatory behavior. This aims to establish a culture of accountability within government contracting and ensure that whistleblowers can report misconduct without fear of retribution.

Impact on Current Regulations

The proposed changes modify existing sections of U.S. Code relating to federal contractor whistleblower protections, expanding the definition of affected individuals and the scope of protected disclosures. This could lead to broader compliance requirements for contractors within the federal space.

Relevant Companies

• BA - Boeing: As a defense contractor, Boeing could see changes in how it handles disclosures from subcontractors and could face increased accountability measures if the bill passes.
• LMT - Lockheed Martin: Being one of the largest defense contractors, Lockheed would need to ensure its systems for reporting and addressing complaints are robust to comply with the expanded whistleblower protections.
• DYN - DynCorp: As a defense and government services contractor, DynCorp may be directly affected by any changes to whistleblower protections and the implications of enforcing them among its subcontractors.