False Claims Act Expands to Immigration in Federal Work, DOJ Enforces

The U.S. Department of Justice is widening how it uses the False Claims Act in federal work to include immigration violations tied to government contracts, stepping up pressure on companies that employ unauthorized workers or commit visa fraud while billing taxpayers. Since May 2025, the department has added immigration-focused incentives to its whistleblower program, paired FCA enforcement with criminal statutes, and gained fresh administrative tools through new authority granted by Congress. Together, these moves form a coordinated push that could reshape compliance programs across federal contracting in the United States 🇺🇸.

False Claims Act: the central tool

At the center of the shift is the False Claims Act (FCA), a law that lets the government recover money when a contractor submits a false bill or false certification. The Justice Department is now applying that law to cases where a company’s immigration practices affect the performance of a federal contract.

This includes:

• Billing for labor by unauthorized workers
• Visa-related fraud that results in work billed to the government

According to analysis by VisaVerge.com, the result has been multi-million dollar settlements, and more cases are reportedly in the pipeline as federal agencies align enforcement tools.

Whistleblower incentives and scope changes

A major driver is the Justice Department’s Corporate Whistleblower Awards Pilot Program, which since May 2025 has explicitly included immigration violations within its scope.

Key points:

• The program now covers unauthorized employment of foreign nationals, fraudulent visa applications, and misuse of visa categories (for example, using a visitor visa in place of a proper work visa).
• Insiders who report this behavior can receive awards of up to 30% of the government’s monetary recovery.
• With clear rewards and a growing list of eligible misconduct, more employees, subcontractors, and consultants are expected to come forward.

The expanded whistleblower incentives create a strong financial motivator that increases risk for contractors who cut corners on immigration compliance.

Enforcement strategy: civil and criminal pairing

Courts have often been skeptical of FCA cases based solely on visa fraud. The Justice Department is responding by pairing the FCA with criminal statutes in immigration-related cases, building stronger, multi-front cases.

Practical implications:

• A contractor that submits invoices for work performed by an unauthorized worker — or that falsely certifies compliance with immigration rules — could face:
  • FCA liability
  • Criminal exposure
  • Or both, depending on the facts
• Combining civil and criminal tools gives prosecutors more leverage and increases the potential consequences for companies that fail to police hiring and visa practices.

Congressional and administrative changes

Congress has expanded agency power through the 2025 National Defense Authorization Act (NDAA).

Notable changes:

• The NDAA renamed and expanded the Administrative False Claims Act.
• It raised the monetary threshold for administrative claims to $1 million, enabling agencies to pursue and resolve false claims outside the courts with stronger penalties.
• The administrative track can move faster than litigation, creating a quicker path to significant financial and reputational damage for contractors.

DHS and USCIS: enforcement coordination

The Department of Homeland Security has aligned with this shift.

• In 2025, DHS issued a final rule that significantly expanded U.S. Citizenship and Immigration Services (USCIS) enforcement authority, including law enforcement powers to investigate and remove unauthorized individuals.
• Those powers complement DOJ’s FCA use: USCIS investigations can uncover unauthorized work on federal projects and feed evidence into FCA cases and whistleblower claims.

USCIS also updated policy in August 2025:

• It clarified that false claims to U.S. citizenship trigger immigration consequences even when made to private parties (such as employers).
• False statements about citizenship can result in inadmissibility under immigration law.
• This alignment means a false claim of citizenship given to get hired on a federal project — followed by billing for that labor — can create both immigration and FCA risk, affecting the worker, the staffing vendor, and the prime contractor.

Policy shift and new incentives (summary)

• The DOJ whistleblower program now expressly includes immigration violations (unauthorized employment, fraudulent visa filings, misuse of visitor visas for work).
• Whistleblowers can receive up to 30% of the government’s recovery.
• DOJ is pairing the FCA with criminal statutes for immigration enforcement, responding to earlier judicial skepticism.
• The 2025 NDAA expanded the Administrative FCA and raised the threshold for administrative claims to $1 million.
• DHS expanded USCIS’s enforcement authority in 2025, enhancing investigative and removal powers.
• USCIS clarified in August 2025 that false citizenship claims to private parties can trigger inadmissibility, aligning immigration policy with FCA enforcement.

Contractor risks and practical effects

Many contractors rely on complex staffing chains that include subcontractors and staffing firms. Under DOJ’s approach, a false claim can arise when a company bills the government for work performed by someone not authorized to work in the U.S., or when a visa category is misused to staff a federal project.

Examples of risky conduct:

• Placing a visitor visa holder into a role that requires a work visa, then billing the government for that labor.
• Certifying compliance while knowingly employing or tolerating unauthorized workers supplied by a vendor.

Day-to-day compliance changes:

• Workforce checks now tie directly to billing risk — payroll and invoicing teams must coordinate with compliance to ensure billed hours match authorized workers.
• Visa usage on federal projects will face extra scrutiny — substituting visitor status for work authorization creates direct FCA exposure.
• Subcontractor oversight will increase — primes will demand stronger immigration compliance assurances and more audits.
• Whistleblower controls will shift — companies may refresh internal reporting channels and anti-retaliation policies as insiders have greater incentives to report externally.

False claims related to citizenship statements also matter:

• If a worker lies about U.S. citizenship to get a federal job and the contractor bills for their work, both immigration consequences and FCA exposure may follow.
• The USCIS policy update emphasizes that false statements to private employers can carry immigration penalties — the FCA framework makes those statements relevant to payment claims as well.

Compliance, investigations, and administrative remedies

Legal and compliance teams should expect closer coordination with government investigators:

• USCIS’s expanded powers enable more investigations into unauthorized employment.
• Findings from USCIS, together with whistleblower reports, can drive DOJ civil and criminal actions.
• Agencies can now bring or settle administrative false claims up to $1 million, providing a fast path to recovery even before a court case.

What a “safe” approach looks like under the new posture:

1. Keep strict hiring checks for anyone billed to federal work.
2. Avoid any visa category misuse.
3. Document reviews of subcontractor compliance.
4. Correct problems promptly when discovered.

These are familiar measures, but their enforcement linkage to the FCA makes them mission-critical for federal projects.

Guidance for potential whistleblowers

• The DOJ whistleblower program now recognizes immigration violations tied to federal work as eligible for awards, including unauthorized employment, visa fraud, and misuse of visa categories.
• Insiders with non-public information who report it can receive up to 30% of the recovered funds.
• Those considering a report should understand the program rules and how immigration violations connect to false claims, since those links drive award determinations.

The long view

Government officials have not announced an end date for this enforcement focus. The pattern suggests a sustained effort:

• DOJ incentives to include immigration violations,
• DHS rules increasing investigative power,
• Congressional changes making administrative recovery faster and more forceful.

Each component reinforces the others. For contractors, this means ongoing risk, and that audits, training, and vendor oversight should reflect the new enforcement reality.

For general background on the FCA and how it applies to fraud involving federal funds, see the Department of Justice’s FCA resource page at the Civil Division: U.S. Department of Justice — False Claims Act.

The broader theme is straightforward: when federal money pays for work, immigration rules matter to payment. If a contractor breaks those rules and bills anyway, the False Claims Act can apply. Recent changes explicitly link immigration compliance to the integrity of government spending and give whistleblowers strong reasons to speak up.