GAO Report Highlights Federal Protections for Whistleblowers
Washington, D.C. — The U.S. Government Accountability Office (GAO) yesterday released a new report, Protections for Whistleblowers and Others: Selected Agency Actions Regarding Reports of Potential Wrongdoing, examining how federal agencies safeguard individuals who report misconduct.
The report emphasizes that leadership plays a central role in fostering trust. Agencies can strengthen reporting cultures by enforcing discipline against retaliators, providing anti-retaliation training, monitoring program progress, and promoting a workplace “speak up” culture.
“The GAO’s findings confirm what we have long known: a whistleblower program is only as strong as its protections against retaliation. The billions recovered by the IRS and SEC prove that financial incentives work, and those incentives need to be paired with meaningful anti-retaliation provisions to protect whistleblowers who risk their livelihoods and more,” remarked Jacklyn DeMar, President and CEO of The Anti-Fraud Coalition. “By holding retaliators accountable and dismantling restrictive ‘gag’ agreements, federal agencies are sending a clear message that the truth is a career asset, not a liability.”
Key Findings Include:
Strong Monetary Incentives Paired with Confidentiality Protections
The Internal Revenue Service (IRS) made between 105 and 179 awards annually for information provided by disclosers during fiscal years 2020 through 2024. Since issuing its first award in 2007, the IRS has paid over $1.4 billion in awards, based on the collection of approximately $7.9 billion from noncompliant taxpayers.
The U.S. Securities and Exchange Commission (SEC) made between 39 and 116 awards annually for disclosures leading to monetary sanctions against organizations during fiscal years 2020 through 2024.
Enforcement Against Retaliation and Impeding Reporting
The SEC’s Office of the Whistleblower reported that in fiscal year 2024 it brought 11 enforcement actions against entities and individuals who took steps to impede whistleblowers from communicating with the agency, including through restrictive agreements.
As of November 2024, the SEC had filed a total of 32 enforcement actions concerning efforts to impede reporting and five anti-retaliation enforcement actions since the whistleblower program’s inception in 2011. These cases include one resulting in an $18 million penalty, the highest penalty ever imposed by the SEC for violations involving an organization impeding a discloser’s reporting.
Building a Culture of Trust
The GAO report underscores that fear of retaliation and restrictive employment agreements can discourage individuals from reporting misconduct. Agencies identified the importance of clear policies, accountability for retaliators, leadership commitment, and regular training to ensure employees understand their rights and protections.
By combining confidentiality safeguards, meaningful financial incentives, and enforcement authority, federal agencies continue to strengthen mechanisms that encourage individuals to come forward with information that helps expose waste, fraud, abuse, and other misconduct.
