How Government Shutdowns Disrupt False Claims Act and Whistleblower Enforcement

by Madison A. Gregg and Alden Hey

While government shutdowns temporarily affect the pace of whistleblower investigations, enforcement under the False Claims Act and related programs remain resilient. Agencies like the Department of Justice, SEC, CFTC, and IRS continue to prioritize critical fraud detection and case preparation, even with limited staffing.

How do Government shutdowns temporarily affect False Claims Act investigations and DOJ litigation?

The Department of Justice (DOJ) maintains a Government shutdown employee furlough exception that applies to 89% of their workforce for the first 5 days of a Government shutdown. In the most recent Government shutdown, the DOJ was required to substantially limit all operations without compromising to a significant degree the safety of human life or the protection of property after the exception period expired. Accordingly, all criminal litigation under the U.S. Attorneys’ offices continued without interruption while civil litigation was limited.

The False Claims Act can be prosecuted with both criminal and civil penalties. However, most FCA cases and investigations do not possess the imminent harm requirement that is necessary for operations to continue under a Government shutdown. Because of this, DOJ investigations and litigation of FCA violations typically operate in a limited capacity during Government shutdowns.

What steps do agencies like the SEC, CFTC, and IRS take to maintain whistleblower case integrity during funding lapses?

Whistleblower programs across other federal agencies are also impacted by extended Government shutdowns. While some whistleblower programs remain unaffected, enforcement varies based on how each program is funded.

CFTC

Like the Department of Justice, the Commodity Futures Trading Commission (“CFTC”) is required to continue operations that are necessary for the protection of property. During the October 2025 shutdown, for example, the CFTC identified 31 employees (5.7% of the agency) that were exempt from furlough under this requirement. Additionally, the employees in the Whistleblower Office (“WBO”) were exempt from furlough due to the WBO’s budget being unrelated to the CFTC’s annual appropriation. CFTC whistleblower operations therefore remained fully operational throughout the shutdown.

SEC

During the October 2025 shutdown, the Securities and Exchange Commission (“SEC”) was closed as a result of the Government shutdown. During the shutdown, no covered action whistleblower cases were announced. Despite temporary closure, the SEC was still accepting whistleblower tips and resumed contacting potential whistleblowers after funding was restored.

IRS

The Internal Revenue Service (“IRS”) was one of the agencies most affected by the latest Government shutdown in that the tax extension filing deadline for 2025 fell on October 15, 2025, two weeks into the Government shutdown. Despite the necessity of maintaining staffing levels during such a critical time for the IRS, roughly 50% of the IRS was furloughed per the Lapse in Appropriations Contingency Plan. The IRS continued to accept whistleblower tip submissions; however, activities related to whistleblower investigations were limited due to the time of year and staffing shortages.

How can whistleblowers use shutdown time strategically to strengthen documentation and prepare for agency review?

While communication from any given whistleblower agency can be limited during a Government shutdown, potential whistleblowers can still capitalize on the shutdown time to strengthen their case independent of Government assistance. As a whistleblower, it is critical to compile and organize as much evidence as possible related to your case. Examples of important evidence include emails, data, spreadsheets, and any other documents relating to the potential case. By collecting and organizing evidence ahead of speaking with a federal agency, whistleblowers improve their chances of having their case taken up following a formal investigation.

How can Miller Shah help whistleblowers keep their claims on track through proactive case management?

While federal agencies might be experiencing staffing shortages and a delay in getting operations back on track following the shutdown, Miller Shah LLP remains wholly committed to the investigation, litigation, and success of whistleblower claims. Miller Shah can help whistleblowers organize and prepare their case by providing insight into evidence to seek out and preserve. Additionally, Miller Shah has extensive experience advising whistleblowers on how they can maintain confidentiality throughout the litigation process and after a case concludes.

Miller Shah is a nationally recognized leader in the litigation of False Claims Act and other whistleblower program matters. Miller Shah aims to assist whistleblowers in maximizing both their chance of successfully bringing violators to justice and their monetary reward for coming forward.