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Federal Funds Whistleblower Protection Extension Act
To extend whistleblower protections to individuals who disclose misuse of Federal funds administered by State and local officials, and for other purposes.
Summary
This bill extends federal whistleblower protections to employees and contractors of state and local governments who administer federal funds. The bill prohibits retaliation against these individuals for disclosing misuse, waste, fraud, or abuse of federal funds, as well as violations of federal law or gross mismanagement in federally-funded programs. Retaliation is prohibited in various forms including termination, demotion, reduction in pay, or any materially adverse personnel action. The bill creates criminal penalties for state and local officials who retaliate, ranging from $50,000 fines for negligent retaliation to up to $250,000 in fines and five years imprisonment for intentional retaliation. Compliance with the whistleblower protections is made a condition of receiving federal funding, with potential suspension or termination of funds for non-compliance.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
2 cosponsors
- Rep. Finstad, Brad [R-MN-1] (R-MN)
- Rep. Stauber, Pete [R-MN-8] (R-MN)
Actions (2)
- Mar 5, 2026 Referred to the House Committee on Oversight and Government Reform. · house
- Mar 5, 2026 Introduced in House
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
IN THE HOUSE OF REPRESENTATIVES
March 5, 2026
Mrs. Fischbach (for herself and Mr. Finstad) introduced the following bill; which was referred to the Committee on Oversight and Government Reform
A BILL
To extend whistleblower protections to individuals who disclose misuse of Federal funds administered by State and local officials, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Federal Funds Whistleblower Protection Extension Act”.
SEC. 2. EXTENSION OF WHISTLEBLOWER PROTECTIONS TO STATE-ADMINISTERED FEDERAL FUNDS.
Subpart F of part III of title 5, United States Code, is amended by inserting after chapter 75 the following new chapter:
“CHAPTER 76—PROTECTION OF WHISTLEBLOWERS IN FEDERALLY FUNDED STATE PROGRAMS
“Sec. “7601. Definitions. “7602. Prohibited personnel practices. “7603. Criminal penalties for retaliation. “7604. Referral for criminal prosecution. “7605. Federal funding condition. “Sec. 7601. Definitions “In this chapter:
“(1) Covered individual.—The term ‘covered individual’ means any employee, contractor, subgrantee, or agent of a State or local government, or of a non-Federal entity, administering or receiving Federal financial assistance.
“(2) Covered official.—The term ‘covered official’ means any officer, employee, or agent of a State or local government acting in connection with the administration, distribution, or oversight of Federal financial assistance.
“(3) Protected disclosure.—The term ‘protected disclosure’ means any lawful disclosure of information that the covered individual reasonably believes evidences—
“(A) misuse, waste, fraud, or abuse of Federal funds;
“(B) a violation of Federal law relating to a federally funded program; or
“(C) gross mismanagement of a program receiving Federal financial assistance. “Sec. 7602. Prohibited personnel practices
“(a) A covered official may not take or fail to take a personnel action against a covered individual because of a protected disclosure.
“(b) For purposes of this section, ‘personnel action’ includes—
“(1) termination, suspension, demotion, or reassignment;
“(2) reduction in pay or benefits;
“(3) significant change in duties or responsibilities;
“(4) intimidation, threats, or harassment; or
“(5) any other materially adverse action. “Sec. 7603. Criminal penalties for retaliation
“(a) Offense.—Any covered official who knowingly retaliates against a covered individual for making a protected disclosure under this chapter shall be subject to criminal penalties under this section.
“(b) Penalty Structure.—Penalties shall be imposed according to the level of culpability:
“(1) Negligent retaliation.—A covered official who engages in retaliation due to negligence shall be fined not more than $50,000.
“(2) Knowing retaliation.—A covered official who knowingly engages in retaliation shall be fined not more than $100,000, imprisoned not more than 1 year, or both.
“(3) Intentional retaliation for personal gain or concealment.—A covered official who retaliates with the intent to conceal misuse of Federal funds or to obtain personal benefit shall be fined not more than $250,000, imprisoned not more than 5 years, or both. “Sec. 7604. Referral for criminal prosecution “If a Federal agency or Inspector General determines that there is reasonable cause to believe that retaliation prohibited under this chapter has occurred, the agency may refer the matter to the Attorney General for investigation and criminal prosecution. “Sec. 7605. Federal funding condition
“(a) As a condition of receiving Federal financial assistance, each State or local government shall certify compliance with this chapter.
“(b) Failure to comply may result in—
“(1) corrective action requirements;
“(2) suspension of Federal funds;
“(3) termination of Federal funding for the affected program.”.
SEC. 3. CONFORMING AMENDMENT.
The table of chapters for part III of title 5, United States Code, is amended by inserting after the item relating to chapter 75 the following new item:
“76. Protection of Whistleblowers in Federally Funded State Programs 7601”.. <all>
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