HR7824-119

In Committee

Federal Funds Whistleblower Protection Extension Act

119th Congress Introduced Mar 5, 2026

Summary

What This Bill Does

The Federal Funds Whistleblower Protection Extension Act protects an employee, contractor, subgrantee, or agent of a state or local government or nonfederal entity that administers or receives federal financial assistance. A protected disclosure is lawful information the person reasonably believes shows federal-fund waste, fraud, abuse, a related federal-law violation, or gross program mismanagement.

A state or local officer, employee, or agent connected to federal-assistance administration may not take or fail to take a personnel action because of a protected disclosure. Covered actions include termination, suspension, demotion, reassignment, pay or benefit reduction, major duty changes, intimidation, threats, harassment, or another materially adverse action.

The criminal-penalty section first says a covered official who knowingly retaliates is subject to penalties, but then establishes a negligence tier up to $50,000, a knowing tier up to $100,000 and one year in prison, and an intentional concealment or personal-benefit tier up to $250,000 and five years. The threshold clause and negligence tier conflict, leaving uncertainty about whether merely negligent retaliation is actually an offense.

A federal agency or inspector general that finds reasonable cause may refer retaliation to the Attorney General; referral is discretionary. Each state or local government receiving federal financial assistance must certify compliance. Failure may lead to corrective action, suspension, or termination of funding for the affected program.

The bill does not create a private right of action, reinstatement process, backpay remedy, administrative complaint deadline, mandatory investigation, burden-of-proof framework, or protection for unlawful disclosures. Funding suspension can affect program beneficiaries as well as the noncompliant government.

Who Benefits and How

State, local, contractor, subgrantee, and nonprofit workers gain a federal prohibition and potential criminal deterrent against retaliation. Federal agencies, inspectors general, taxpayers, and program beneficiaries may gain earlier disclosure of misuse and mismanagement.

Who Bears the Burden and How

Covered officials face fines, prison, and referral risk. States and localities must certify compliance, train personnel, investigate concerns, and protect funding. Federal agencies and DOJ must assess and prosecute referrals. Beneficiaries and service providers can lose support if funding is suspended or terminated.

Key Provisions

  • Defines covered workers broadly.
  • Protects lawful reasonable-belief disclosures.
  • Covers waste, fraud, abuse, violations, and gross mismanagement.
  • Prohibits adverse personnel actions.
  • Includes intimidation, threats, and harassment.
  • Creates a negligence fine tier.
  • Creates knowing-retaliation fines and imprisonment.
  • Creates heightened concealment and personal-gain penalties.
  • Authorizes federal agency referrals.
  • Authorizes inspector-general referrals.
  • Requires state and local compliance certification.
  • Authorizes corrective action requirements.
  • Authorizes suspension of federal funds.
  • Authorizes termination of affected-program funding.
  • Creates no private damages or reinstatement action.
  • Leaves a knowing-versus-negligent drafting conflict.

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

Extends whistleblower protection to workers, contractors, subgrantees, and agents administering or receiving federal assistance through state or local programs, prohibits materially adverse retaliation, creates contested negligence, knowing, and concealment penalty tiers, permits federal criminal referrals, and makes compliance certification a condition of federal funding.

Key Policy Areas

Whistleblower Protection, Federal Financial Assistance, State and Local Government Employment, Criminal Retaliation Penalties, Federal Funding Conditions

Primary Purpose

Extends whistleblower protection to workers, contractors, subgrantees, and agents administering or receiving federal assistance through state or local programs, prohibits materially adverse retaliation, creates contested negligence, knowing, and concealment penalty tiers, permits federal criminal referrals, and makes compliance certification a condition of federal funding.

Policy Domains

Whistleblower Protection Federal Financial Assistance State and Local Government Employment Criminal Retaliation Penalties Federal Funding Conditions

Sections 2 and 3 covered people and disclosures, adverse-action prohibition, criminal penalty tiers, referral authority, federal-funding certification and consequences, and conforming table amendment

Identified Gains
  • State employees reporting federal-fund misuse
  • Local employees reporting federal-fund misuse
  • Contractors making protected disclosures
  • Subgrantees making protected disclosures
  • Nonprofit workers administering federal assistance
  • Federal inspectors general
  • Federal taxpayers
  • Beneficiaries of well-managed federal programs
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
Federal taxpayers: , , , ,
Federal inspectors general: , , , ,
Contractors making protected disclosures: , , , ,
Subgrantees making protected disclosures: , , , ,
Local employees reporting federal-fund misuse: , , , ,
State employees reporting federal-fund misuse: , , , ,
Beneficiaries of well-managed federal programs: , , , ,
Nonprofit workers administering federal assistance: , , , ,
Identified Costs
  • State officials accused of retaliation
  • Local officials accused of retaliation
  • State governments certifying compliance
  • Local governments certifying compliance
  • Federal agencies reviewing referrals
  • Department of Justice prosecutors
  • Programs exposed to funding suspension
  • Beneficiaries of noncompliant programs
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
Department of Justice prosecutors: , , , ,
Federal agencies reviewing referrals: , , , ,
Beneficiaries of noncompliant programs: , , , ,
Local officials accused of retaliation: , , , ,
Programs exposed to funding suspension: , , , ,
State officials accused of retaliation: , , , ,
Local governments certifying compliance: , , , ,
State governments certifying compliance: , , , ,

Legislative Progress

In Committee
Introduced Committee Passed
Mar 5, 2026

Referred to the House Committee on Oversight and Government Reform.

Mar 5, 2026

Introduced in House

Mar 5, 2026

Mrs. Fischbach (for herself and Mr. Finstad) introduced the following …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

State & Local Government
21 mentions across 6 clauses
+6 positive -11 negative ?4 uncertain

Local employees administering federal funds, Local employees reporting federal-fund misuse, Local governments certifying compliance

Positive-direction: Local employees administering federal funds, Local employees reporting federal-fund misuse, State employees administering federal funds, State employees reporting federal-fund misuse

Negative-direction: Local governments certifying compliance, Local officials accused of retaliation, Local officials overseeing federal assistance, Officials concealing federal-fund misuse, State governments certifying compliance, State officials accused of retaliation, State officials overseeing federal assistance

General Public
7 mentions across 3 clauses
+2 positive -4 negative ?1 uncertain

Beneficiaries of noncompliant programs, Programs exposed to funding suspension, Service providers funded by affected programs

Positive-direction: Taxpayers, Whistleblowers in federally funded programs

Negative-direction: Beneficiaries of noncompliant programs, Programs exposed to funding suspension, Service providers funded by affected programs

Government
6 mentions across 5 clauses
+2 positive -2 negative ?2 uncertain

Department of Justice prosecutors, Federal agencies administering assistance, Federal agencies enforcing grant conditions

Positive-direction: Federal agencies enforcing grant conditions, Federal inspectors general

Negative-direction: Department of Justice prosecutors, Federal courts resolving culpability conflict

Federal Contracting
3 mentions across 3 clauses
+3 positive

Contractors making protected disclosures

Nonprofits
3 mentions across 2 clauses
+3 positive

Nonprofit workers administering federal assistance, Subgrantees making protected disclosures

Labor
1 mention across 1 clause
?1 uncertain

Workers making unlawful disclosures

Media & Entertainment
1 mention across 1 clause
?1 uncertain

Federal code publishers

6/8
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Whistleblower Protection Federal Financial Assistance State and Local Government Employment Criminal Retaliation Penalties Federal Funding Conditions
Actor Mappings
"official"
→ State or local official accused of retaliation
"inspector"
→ Federal agency or inspector general considering referral
"recipient"
→ State or local government receiving federal assistance
"beneficiary"
→ Person relying on an affected federally funded program
"whistleblower"
→ Covered worker making a protected disclosure
"attorney_general"
→ Justice Department official investigating or prosecuting

Note: {'scope_ids': ['state_administered_federal_funds_whistleblower_protection'], 'description': 'The bill relies on criminal and funding enforcement rather than a worker lawsuit, makes referrals discretionary, can penalize program funding, and contains a direct textual conflict between an offense introduced as knowing retaliation and a separate negligence penalty tier.'}

Key Definitions

Terms defined in this bill

3 terms
"federal funding condition" §funding_condition

State or local certification of compliance backed by possible corrective action, suspension, or termination for the affected program.

"covered individual" §covered_individual

An employee, contractor, subgrantee, or agent of a governmental or nonfederal entity administering or receiving federal financial assistance.

"protected disclosure" §protected_disclosure

A lawful disclosure reasonably believed to show federal-fund misuse, a related federal-law violation, or gross program mismanagement.

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology