Pennsylvania Passes Bill to Recoup Ill-Gotten Funds and Incentivize Whistleblowers

Pennsylvania has taken a significant step in combating financial waste, fraud, and abuse by passing a bill that would allow the state attorney general to seek repayment of government money obtained through false information. The bill, sponsored by Rep. Frank Burns, aims to enact a false claims law in Pennsylvania, modeled after the federal False Claims Act, which has been successful in recouping millions of dollars in taxpayer money. The bill would also provide protections for whistleblowers who come forward to expose fraudulent activity.

Key Takeaways:

• The bill, H.B. 1697, would allow the state attorney general to seek repayment of government money obtained through false information, providing a mechanism to recoup misappropriated taxpayer money.
• The bill would incentivize private citizens to expose fraudulent activity by giving up to 30% of any recouped money to those who file successful civil lawsuits on behalf of the commonwealth.
• The bill would protect whistleblowers from retaliation, providing them with a deserved layer of protection.
• The legislation is modeled after the federal False Claims Act, which has generated hundreds of millions of dollars in recovery of taxpayer money.
• Pennsylvania is the largest state without a similar law in place, but the bill would put the state on a path to rectification and eligibility for a larger share of false claims lawsuits brought at the federal level.
• Federal false claims settlements and judgments exceeded $2.68 billion for fiscal year 2023.
• A recent example of a successful federal false claims settlement includes Booz Allen Hamilton Holding Corp., which paid $377 million to resolve allegations of overbilling for non-government work.

Statistics:

• Federal false claims settlements and judgments exceeded $2.68 billion for fiscal year 2023.
• One of the largest procurement false claim settlements, Booz Allen Hamilton Holding Corp. paid $377 million to resolve allegations that it overbilled the government for non-government work.
• A recent case in Eastern Pennsylvania resulted in a home care fraud kickback scheme that bilked Medicaid out of nearly $1.1 million.

Sources:

• "Rep. Frank Burns' bill to root out financial waste, fraud and abuse passes House" by Pennsylvania House of Representatives, Democratic Caucus, July 9, 2025.
• Federal False Claims Act.
• Pennsylvania House of Representatives. (2025, July 9). Rep. Frank Burns' bill to root out financial waste, fraud and abuse passes House. Retrieved from the Pennsylvania House of Representatives, Democratic Caucus website.
• United States Department of Justice. (2024, April). Fiscal Year 2023 False Claims Act Settlements.