Trump announces new incentive program for fraud tipsters
President Donald Trump announces a $25 million whistleblower program offering cash rewards for tips that lead to fraud convictions or major federal enforcement actions.
EXCLUSIVE - President Donald Trump is putting cash behind his crackdown on taxpayer fraud, offering Americans rewards for tips that help bring fraudsters to justice.
Speaking alongside Vice President JD Vance and independent journalist Nick Shirley in the Oval Office, Trump unveiled the Fraud Whistleblower Incentive Program and said qualifying tipsters would receive a 1% commission, subject to applicable laws and rules.
"If you turn somebody in and you, let's say report, and you find $1 billion, we are giving a commission to that person of 1%," Trump said.
Fox News Digital exclusively reported plans for the program ahead of Tuesday’s announcement. A White House official initially described a $25 million initiative administered by the Justice Department, with rewards of up to $30,000 for tips leading to a successful fraud conviction or significant federal enforcement action.
TRUMP'S WAR ON FRAUD EXPANDS AS TREASURY LAUNCHES NEW SITE WITH WHISTLEBLOWER INCENTIVES
President Donald Trump attends an Oval Office announcement unveiling the Fraud Whistleblower Incentive Program at the White House on Oct. 20, 2026. (Andrew Harnik/Getty Images)
Trump’s remarks outlined a different payout structure. He said journalists could also participate, subject to applicable rules and approval from their employers.
Americans can report suspected theft of taxpayer dollars through fraud.gov, Trump said.
The president also said he would personally settle disputes over who deserves a reward, describing a process in which he would determine whether competing tipsters should split a payment.
"I'll make that determination. It'll be done expeditiously and fairly," Trump said.
President Donald Trump joins Vice President JD Vance, independent journalist Nick Shirley and administration officials for an Oval Office announcement unveiling fraud whistleblower incentives on Oct. 20, 2026. (Andrew Harnik/Getty Images)
Vance said the initiative grew out of a conversation with Trump about recruiting Americans to help investigators uncover fraud.
"If you want to help us stop it, you get to share in the rewards," Vance said.
Shirley drew national attention in December 2025 after publishing a video questioning whether several Somali-run Minnesota daycare centers were operating as legitimate businesses. His video showed apparently empty facilities and included people who said they had not seen children at the locations.
AG BLANCHE UNVEILS FEDERAL CHARGES AGAINST 160 DEFENDANTS IN PANDEMIC RELIEF SWEEP
Independent journalist Nick Shirley joins President Donald Trump, Dr. Mehmet Oz and Vice President JD Vance as the administration unveils cash incentives for exposing taxpayer fraud. (Andrew Harnik/Getty Images)
The White House credited Shirley’s reporting with helping spur a surge of FBI and Department of Homeland Security resources into Minnesota, followed by investigations, arrests and new charges.
One facility featured in Shirley’s video was Future Leaders Early Learning Center, whose former CEO, Fahima Egeh Mahamud, pleaded guilty in July to wire fraud and conspiracy to defraud the United States.
HOUSE GOP BILL MOVES TO CLOSE WHISTLEBLOWER GAPS EXPOSED BY MINNESOTA MEDICAID FRAUD SCANDAL
Federal agents enter an office building as a search warrant is executed at Ultimate Home Health Services over potential Medicaid fraud on December 18, 2025, in Bloomington, Minnesota. (Christopher Juhn/Anadolu via Getty Images)
Prosecutors said Mahamud stole more than $4.6 million through false child care assistance claims and $850,000 through a federal child nutrition program connected to the Feeding Our Future scandal.
Shirley previously pointed to Mahamud’s guilty plea as vindication of his reporting amid efforts to discredit his investigations.
WHITE HOUSE LAUNCHES INTERACTIVE MAP TRACKING BILLIONS IN SUSPECTED FRAUD
"Well, numbers don't lie, and convictions don't lie either," he previously told Fox News Digital.
Trump praised the independent journalist’s work, telling him, "He's done an amazing job."
Shirley said his reporting had drawn threats and scrutiny of him rather than the suspected wrongdoing he sought to expose.
"Instead of the mainstream media investigating the fraud they investigated me," Shirley said.
TRUMP SAYS ANTI-FRAUD EFFORTS ARE UNCOVERING BILLIONS IN WASTE, CLAIMS SAVINGS COULD BALANCE BUDGET
Federal Trade Commission Chairman Andrew Ferguson speaks as President Donald Trump and Vice President JD Vance look on during a fraud task force announcement on Oct. 20, 2026. (Andrew Harnik/Getty Images)
The reward initiative adds a public tip incentive to the administration’s broader campaign against fraud in federal benefits programs.
Trump established the Task Force to Eliminate Fraud in March, with Vance serving as chairman. The executive order directed the group to coordinate efforts across federal agencies to uncover fraud, strengthen eligibility checks and prevent improper payments.
Under the new program, submitting an allegation alone would not qualify someone for a reward. The tip must lead to a successful fraud conviction or a significant federal enforcement action, according to the White House official.
"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. This administration has zero tolerance for individuals who steal from Americans," White House spokeswoman Lauren Bis told Fox News Digital.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
The event also brought a separate announcement from Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz, who said the administration was deferring another $1.2 billion in California Medicaid payments directed toward personal care services.
Oz cited questions about the program’s spending growth and said tips from people inside businesses can help investigators identify wrongdoing.
Federal Trade Commission Chairman Andrew Ferguson, the task force’s vice chairman, also called for Congress to impose mandatory minimum prison terms for benefits fraud and civil liability for state officials who fail to stop fraud they could have prevented.
Fox News Digital's David Unsworth contributed to this report.
