New Administrative False Claims Act Gives Federal Agencies More Power to Pursue and Settle Fraud Claims in 2025

The newly anointed Administrative False Claims Act (AFCA) renames and revitalizes the Program Fraud Civil Remedies Act of 1986 (PFCRA). The refreshed AFCA expands contracting agencies’ powers to pursue and settle up to $1 million in fraud claims and false statements made to the Government. Agencies are also allowed to recoup investigation and prosecution costs. AFCA likely will increase contracting or administrative agency scrutiny and enforcement of lower-dollar claims.

• • Lower damages and penalties compared to the False Claims Act (FCA) could facilitate settlement for claims between $150,000 and $1 million.
  • Contractors may negotiate resolutions directly with agencies, providing more flexibility.
  • Contracting agencies may settle for less than double damages.
  • Companies should brace for increased enforcement efforts as AFCA is reactivated.

Under AFCA, agencies simply need DOJ review and concurrence to pursue fraud claims and false statements directly with contractors.

Read more details in Wiley Rein LLP: New Administrative False Claims Act Gives Federal Agencies More Power to Pursue and Settle Fraud Claims in 2025