H.R. 7824: Federal Funds Whistleblower Protection Extension Act

The Federal Funds Whistleblower Protection Extension Act aims to enhance protections for whistleblowers who report misuse of Federal funds that are managed by state and local governments. Here are the key components of the bill explained in simpler terms:

1. Protections for Whistleblowers

The bill introduces formal protection for individuals—such as employees or contractors—who expose misuse, fraud, abuse, or waste of Federal funds used by state or local governments. These individuals are referred to as "covered individuals."

2. Definitions of Key Terms

- **Covered Individual**: Refers to any employee, contractor, or agent working with state or local governments that receive Federal financial assistance.- **Covered Official**: Refers to any representative of state or local governments managing Federal funds.- **Protected Disclosure**: This is any lawful report made by a covered individual that concerns: - Misuse, waste, fraud, or abuse of Federal funds. - Violations of Federal law relating to funded programs. - Serious mismanagement of programs receiving Federal funds.

3. Prohibited Actions Against Whistleblowers

State and local officials are prohibited from taking negative actions against covered individuals if they make protected disclosures. Negative actions could include:- Being fired, suspended, or demoted.- Being reassigned or having their pay reduced.- Facing intimidation or harassment.

4. Criminal Penalties for Retaliation

The bill establishes criminal penalties for covered officials who retaliate against individuals for whistleblowing. The penalties vary based on the severity of the retaliation:- **Negligent Retaliation**: Up to $50,000 in fines.- **Knowing Retaliation**: Up to $100,000 in fines or a year in jail, or both.- **Intentional Retaliation for Personal Gain**: Up to $250,000 in fines or five years in jail, or both.

5. Referral for Criminal Prosecution

If a Federal agency finds reasonable evidence that retaliation against a whistleblower occurred, they can refer the matter to the Attorney General for potential criminal prosecution.

6. Conditions for Federal Funding

States and local governments must certify compliance with these whistleblower protections as a condition for receiving Federal financial assistance. Non-compliance could result in:- Required corrective actions.- Suspension of Federal funds.- Termination of Federal funding for the related program.

7. Conforming Amendments

The act proposes updates to existing laws to include this new chapter on whistleblower protections for federally funded state programs.

Relevant Companies

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