In House Hearing, DAAG Jenny Discusses FCA Enforcement Priorities Related to Grants, Faces Questioning on Using FCA to Target Discrimination

On June 24, 2026, the Investigations and Oversight Subcommittee of the U.S. House of Representatives Committee on Science, Space, and Technology held a hearing on “Federal Research Funds: The False Claims Act’s Role in Combating Grant Fraud.”  Brenna Jenny, DOJ’s Deputy Assistant Attorney General for Commercial Litigation, testified on three FCA enforcement “focus areas” related to federal grants, before responding to questions regarding the use of the statute to target discrimination.

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DOJ Reaches $507,144 Settlement with Defense Contractor, Signals Increased FCA Scrutiny of Cybersecurity Self-Assessments

On June 18, 2026, DOJ announced a settlement with LOGZONE Inc., a defense contractor, to pay $507,144 to resolve allegations that it violated the False Claims Act through its failure to satisfy cybersecurity requirements in its contracts with the Department of the Navy (“the Navy”). This settlement involves yet another coordinated enforcement effort through the recently created Task Force to Eliminate Fraud, previously reported on here and here. DOJ reached this settlement with assistance from the Department of the Navy, the Department of the Army, and the Defense Contract Management Agency (“DCMA”). This settlement underscores cybersecurity compliance as a focus of FCA enforcement.

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Challenging Executive Order on DEI, States Say It Gets FCA Materiality Wrong

On June 10, 2026, nineteen states and the District of Columbia filed an Administration Procedure Act suit challenging President Trump’s Executive Order No. 14398 (the EO), on which we have previously reported here.  The EO advances the Trump Administration’s goal to eradicate diversity, equity, and inclusion (DEI) activities among federal contractors by, among other things, expressly tethering DEI to potential FCA liability.  Targeting the EO’s language on FCA liability, the plaintiff states argue that it contravenes the materiality test established by the Supreme Court in Escobar.

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DOJ Announces Accelerated Review of FCA Qui Tams Alleging Fraud Against State-Administered Benefits Programs

It is not business as usual at DOJ.  In the latest announcement related to the Department’s efforts to fight alleged fraud, on May 27, 2026, Assistant Attorney General Brett Shumate issued a memorandum directing DOJ’s Civil Division and U.S. Attorneys’ Offices to accelerate the review of qui tams alleging fraud against federally funded state-administered benefits programs, including programs involving housing, food assistance, medical care, and cash assistance.   The memorandum, titled “Accelerating Review and Enhancing Enforcement in Benefits Fraud Matters,” implements President Trump’s March 2026 Executive Order establishing the “Task Force to Eliminate Fraud,” which we reported on here, and which directed the Department to take appropriate action to promote “meritorious” qui tams and to complete investigations sooner, including within the 60-day statutory period.

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DOJ and Texas AG Announce First Settlement in National Investigation of Gender-Affirming Care for Minors

On May 15, 2026, the U.S. Department of Justice (“DOJ”) and Texas Attorney General Ken Paxton announced agreements with Texas Children’s Hospital (“TCH”) resolving allegations related to TCH’s provision of gender-affirming care to minors. The matter marks the first publicly announced resolution arising from DOJ’s ongoing nationwide investigation into alleged federal-law violations associated with such care. The resolution is notable not only because of the subject matter involved, but also because of the enforcement architecture it reflects: coordination between DOJ and a state attorney general; reliance on False Claims Act (“FCA”) and Federal Food, Drug, and Cosmetic Act (“FDCA”) theories that remain largely untested in this context; and remedies that extend well beyond a monetary payment.

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Vice President and CMS Announce Suite of New Administrative Actions to Further Federal Anti-Fraud Health Care Initiatives  

Last week, the White House and CMS announced a set of new administrative actions to further the Administration’s anti-fraud mission, including in particular CMS’s CRUSH (Comprehensive Regulations to Uncover Suspicious Healthcare) initiative, announced earlier this year. At a May 13, 2026 press conference, Vice President J.D. Vance, CMS Administrator Dr. Mehmet Oz, and CMS Deputy Administrator and Chief Operating Officer Kim Brandt outlined measures designed not only to identify and prevent fraud, but also to pressure states and their Medicaid Fraud Control Units (“MFCUs”) to take a more active enforcement role.

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Tariff Enforcement at the Forefront: Importer Agrees to Pay $549.5 million in Largest-Ever Trade-Related False Claims Act Settlement

On May 12, 2026, the U.S. Department of Justice (“DOJ”) announced a $549.5 million settlement with Perfectus Aluminum Acquisitions LLC (“Perfectus Aluminum”) and four affiliated warehousing companies (collectively, “the Warehouses”) to resolve allegations that they violated the False Claims Act (“FCA”) by evading customs duties.[1] The settlement is the largest trade-related settlement under the FCA.

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DOJ’s National Fraud Enforcement Division Launches West Coast Health Care Fraud Strike Force

In a further sign that healthcare fraud enforcement remains a top Department of Justice (“DOJ”) priority, on April 30, 2026, the National Fraud Enforcement Division ( “Fraud Division”) announced the launch of the West Coast Health Care Fraud Strike Force (“West Coast Strike Force”).  While the Fraud Division was itself newly created, this latest news is of a piece with the traditional model and enforcement approach of DOJ’s dedicated health care fraud team going back to 2007.  Nationally, since its inception, the HCF Strike Force program has been responsible for the prosecution of over 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion.

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