Taxpayer Watchdog Warns of Counterproductive False Claims Legislation

For Immediate Release                                                                                              Contact: Courtney Mattison    (202-535-7492)

November 2, 2021                                                                                                                        

Washington, D.C. – The Taxpayers Protection Alliance (TPA) urges members of the Senate Judiciary Committee to reconsider proposed changes to the False Claims Act. Existing proposals would lead to frivolous litigation and raise a number of due process concerns.

In response, TPA President David Williams offered the following comment:

“Rooting out waste, fraud, and abuse in government is a noble and much-needed endeavor by elected officials. However, despite claims by its proponents, the False Claims Amendments Act – as introduced by Sen. Chuck Grassley (R-Iowa) – would lead to more potential waste. The original False Claims Act was to be able to determine when the government has been defrauded and to regain losses incurred at the taxpayer’s expense.

“The changes being proposed here, however, would increase the burden of proof on those accused of fraud. It incentivizes false claims of fraud. This will kick off a cycle of frivolous litigation that is a boondoggle for trial lawyers everywhere. All of the litigation and investigation will cost the taxpayers more money, negating the intended effect of the legislation in the first place. We urge members of the committee to consider the unintended consequences of making these changes.”

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Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.