Enhanced AFCA Empowers Agency Fraud-Fighting, Creates Compliance Concerns for Federal Contractors and Others
Takeaways The Administrative False Claims Act expands federal agencies’ authority to investigate and resolve false claims independently. The $1 million monetary threshold for administrative claims allows agencies to handle larger fraud cases without going through judicial processes. Entities interacting with federal agencies could lower risks by enhancing their internal compliance programs and emphasizing accurate documentation and reporting. Article Significant revisions to the Program Fraud Civil Remedies Act of 1986 (PFCRA), now called the Administrative False Claims Act (AFCA), bolster federal agencies’ ability to address alleged fraud by expanding their authority to pursue and resolve false claims administratively. Government contractors, grant recipients, and other entities engaged with federal programs should consider the implications of the revisions passed in the National Defense Authorization Act (NDAA) for fiscal year 2025, enacted on Dec. 23, 2024. Background: False Claims ...