Letter to the Editor: Whistleblowers Won’t Catch Every Fraudster
Nobody likes fraud, but reporting fraud for a reward can’t substitute for sound oversight and accountable program design (“Trump Offers $30,000 for Tips on Fraud,” U.S. News, Oct. 21). Existing whistleblower programs have a mixed record, including personal and political grudges, billing disputes recast as fraud, questionable settlements enriching lawyers, and cronyism. President Trump’s claiming personal discretion over rewards risks creating a slush fund for political allies.
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Minnesota’s Feeding Our Future scandal illustrates the deeper problem. Officials flagged irregularities for years, yet payments continued. Had Minnesota been responsible for the roughly $250 million in federal funds lost to the fraudulent child nutrition scheme, state officials might have had stronger incentives to follow through. Separating the administration of programs from the responsibility for financing them weakens states’ incentives to prevent waste and fraud.
Preventing improper payments is more effective than chasing money that is already gone. The U.S. Treasury prevented $175 million in payments to deceased people in fiscal year 2026, partly through expanded use of its Do Not Pay system. Expanding the system’s access to relevant data and requiring federal and state agencies to use it consistently could prevent further losses.
Congress should also pursue structural reforms that give states a bigger financial stake in curbing fraud in federal programs they run. Real accountability means changing the incentives and structures that invite waste and abuse—not paying people to expose it after the damage is done.
Source: https://www.cato.org/commentary/letter-editor-whistleblowers-wont-catch-every-fraudster
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