DOJ Updates False Claims Act Guidance for Government Contractors
The DOJ revised its Justice Manual to clarify FCA enforcement and contractor compliance.
Why it matters: Legal and compliance teams managing government contracts must update their frameworks promptly to mitigate risks under the False Claims Act guidance revisions.
- Revisions announced on September 18, 2026, strengthen FCA enforcement with clearer priorities.
- Sub-regulatory guidance cannot impose obligations beyond existing law, per DOJ clarifications.
- DOJ will consider dismissing qui tam actions lacking legal or factual merit to reduce burdens on businesses.
- Revisions build on DOJ's 2017 policy limiting sub-regulatory guidance use in enforcement actions.
On September 18, 2026, the U.S. Department of Justice (DOJ) updated its Justice Manual to refine enforcement policies under the False Claims Act (FCA), particularly regarding government contractors. The revisions aim to ensure enforcement actions align strictly with statutory and regulatory obligations rather than sub-regulatory guidance.
Associate Attorney General Stanley E. Woodward, Jr. emphasized: "The Department of Justice should enforce the law, not make law through enforcement." This reflects a renewed focus on limiting the DOJ's reliance on sub-regulatory guidance that was reinstated and expanded from the 2017 policy.
The DOJ highlighted that it will exercise its dismissal authority under 31 U.S.C. § 3730(c)(2)(A) judiciously. Assistant Attorney General Brett A. Shumate stated, "The Civil Division will continue to focus on cases that advance the interests of the United States," signaling prioritization of meritorious qui tam claims and the dismissal of those lacking legal or factual merit.
Associate Deputy Attorney General Paul Perkins added, "These revisions will help ensure the Department uses its enforcement authority fairly and effectively—holding fraudsters accountable for violations of binding legal or contractual obligations while seeking dismissal of meritless qui tam actions that waste taxpayer resources and impose unjustified burdens on businesses." This underscores the DOJ’s effort to balance aggressive fraud enforcement with fairness to government contractors.
Legal and compliance teams in corporations holding government contracts should carefully review these changes. Updating compliance frameworks to reflect the clarified limits on enforcement and dismissal priorities will be crucial in mitigating FCA risks going forward.