WASHINGTON – In anticipation of the 10th annual National Whistleblower Appreciation Day, Sen. Chuck Grassley (R-Iowa) and Rep. Zach Nunn (R-Iowa), along with Sen. Maggie Hassan (D-N.H.), are leading legislation to strengthen a whistleblower program at risk of collapsing under its own success. The CFTC Whistleblower Fund Improvement Act of 2023 – which builds off a Grassley-Hassan bill that became law last Congress – would ensure the Commodity Futures Trading Commission (CFTC) whistleblower program will function as intended and accommodate growing engagement.
“The CFTC whistleblower program should not be a victim of its own success. Without congressional action, the whistleblower reward fund could drain faster than it replenishes,” Grassley said. “Our bill would ensure the CFTC whistleblower office continues to promote accountability by making a stopgap fix permanent and strengthening the law that established it in the first place – and at zero cost to the taxpayer.”
“The CFTC relies on whistleblowers to identify fraud, and this information is absolutely critical to protecting consumers,” Nunn said. “Right now, though, the CFTC’s whistleblower program is ironically being hamstrung because it’s been too successful. Our bipartisan bill will make important changes to support whistleblowers without costing taxpayers a dime.”
“When whistleblowers bravely step forward, they are risking their careers in order to prevent wrongdoing and save taxpayer dollars,” Hassan said. “It is vital that this fund for whistleblowers remains available in the future to continue saving billions of dollars. I am glad that Senator Grassley and I were able to temporarily continue this program for the past two years, and I urge my colleagues to support this bill that will make this fund permanent.”
Congress in 2010 created the CFTC Whistleblower Program and Customer Protection Fund (CPF), which pays out whistleblowers’ rewards using fines collected from their disclosures. It also pays for the operating expenses and educational initiatives associated with the CFTC Whistleblower Program.
Under current law, the CPF is capped at $100 million. Any fines collected after the cap is reached are sent to the Treasury’s general fund. In recent years, fines from whistleblower disclosures have increased in volume and value, which, in turn, has yielded higher reward disbursements. However, because of the $100 million collection cap, the CPF is depleting faster than it is replenishing.
Congress in 2021 passed the CFTC Fund Management Act to establish a separate account within the CPF dedicated to program operating expenses. However, that law was a temporary fix and will expire next year. As such, the CFTC Whistleblower Fund Improvement Act of 2023 would:
The legislation would not touch taxpayer dollars since the CPF is made up of fines collected from whistleblower disclosures.
The CFTC Whistleblower Fund Improvement Act of 2023 has garnered support from organizations focused on holding the government accountable, protecting whistleblowers and rooting out financial fraud. Read a letter from stakeholders HERE.
Grassley, Nunn and Hassan are joined in the Senate by John Boozman (R-Ark.), Raphael Warnock (D-Ga.) and Susan Collins (R-Maine).
Bill text is available HERE.
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