Federal Funding Recipients Should Be Aware of DOJ’s Intensified Focus on FCA Enforcement

The U.S. Department of Justice (DOJ) recently reported that settlements and judgments under the federal False Claims Act (FCA) exceeded $6.8 billion during the 2025 Fiscal Year—by far the highest total in the statute’s history. This dramatic increase strongly signals the DOJ’s intent to use the FCA as a dominant enforcement tool to combat fraud across all industries that receive federal funding.

Each year, the FCA returns billions of dollars to the United States Government as a result of the statute’s treble damages and penalties provisions. The DOJ annual press release not only summarizes recovery totals but also provides valuable insights into the government’s current and future enforcement priorities.

Key Statistics From the Report

Notable highlights from DOJ’s fiscal year 2025 statistics include:

• $6.8 billion in civil FCA settlements and judgments, representing the highest single-year recovery total in the statute’s history. This marks a significant increase from $2.9 billion in fiscal year 2024 and the $2.7 billion recovery in fiscal year 2023.
• 1,297 new qui tam lawsuits were filed in fiscal year 2025—also a record-setting number. These actions accounted for more than 77 percent of the judgments and settlements. That number surpasses the prior record of 980 qui tam cases filed in fiscal year 2024.
• In contrast to the 1,297 qui tam relator-initiated cases, the government itself opened 401 investigations, including matters announced as policy objectives of the Trump Administration. 

The second Trump Administration has emphasized the use of FCA to target a broad range of conduct, including customs enforcement and alleged violations of federal civil rights laws. In May 2025, the DOJ announced the creation of the Civil Rights Fraud Initiative, designed to pursue such claims through the FCA.

Significant Enforcement Trends

As in prior years, health care fraud dominated FCA enforcement activity. More than $5.7 billion of the total $6.8 billion in recoveries centered on fraud in the health care industry. 

Moreover, defense contracting also surged in fiscal year 2025. FCA settlements and judgments in this sector increased from approximately $98 million in fiscal year 2024 to more than $633 million in fiscal year 2025. This figure represents the DOJ’s largest annual recovery in military-related FCA matters in nearly two decades, dating back to 2006.

In a continued effort to expand fraud enforcement, the Trump Administration also announced plans to establish a new DOJ division tasked with enforcing federal criminal and civil laws against fraud affecting government programs, federally funded benefits, businesses, nonprofits, and private citizens.

The newly formed DOJ Division for National Fraud Enforcement will be responsible for coordinating “significant, high-impact fraud investigations and prosecutions and related policy matters,” according to the DOJ’s recent press release.  

Future Implications

Although the fiscal year 2025 statistics report did not forecast any future predictions beyond touting the new task forces and divisions already created, we certainly advise federal funding recipients to remain extremely vigilant to heightened FCA risk.

The 2025 statistics demonstrate that the DOJ is laser-focused on using the FCA as a powerful enforcement mechanism across industries ranging from healthcare to procurement, with no indication this trend will lose steam in the coming years.

For more information on the DOJ’s fiscal year 2025 statistics and projections for future enforcement activity, sign up for Feldesman’s Focus on Fraud webinar on March 10, 2026.

If you have any questions regarding False Claims Act investigations, please contact Mindy B. Pava (mpava@feldesman.com) or call 202.466.8960.