File photo of the south facade of the White House in Washington, D.C., where the fraud whistleblower program was announced.
Matt H. Wade (UpstateNYer) / Wikimedia Commons (CC BY-SA 3.0)

Summary

  • President Trump and Vice President JD Vance announced the Fraud Whistleblower Incentive Program in the Oval Office on Oct. 20.
  • The White House described a $25 million program run by the Justice Department, with tips submitted through fraud.gov.
  • Utah YouTuber Nick Shirley, whose 2025 video targeted Minnesota child care centers, received the first award, a $10,000 check.
  • Payout rules were described differently: officials cited awards of up to $30,000 per tip, while Trump spoke of an uncapped 1% commission.

The announcement

President Donald Trump presented a $10,000 check on Tuesday to Nick Shirley, a 24-year-old independent video journalist from Farmington, Utah, as he and Vice President JD Vance rolled out a new program that pays members of the public for reporting fraud against federal programs, the Deseret News and Fox News reported. The event took place in the Oval Office. [2] [4]

The initiative is called the Fraud Whistleblower Incentive Program, or WHIP. The Associated Press reported that the White House described it as a $25 million effort to be administered by the Justice Department, with tips submitted through the government website fraud.gov. White House spokesperson Lauren Bis said the administration has "zero tolerance for individuals who steal from Americans," according to the AP. [1]

How payouts would work

Accounts of the payout rules did not line up. Before the event, the White House said a tip that leads to a fraud conviction or a significant federal enforcement action could earn up to $30,000, the AP reported. A White House official gave Fox News the same eligibility test and said an allegation on its own would not qualify. [1] [2]

In the Oval Office, Trump described a 1% commission on recovered money and said there would be no cap, Spectrum News reported. Fox News reported that he framed the commission as subject to applicable laws and rules; its report carried both the 1% figure and the official's $30,000 ceiling without explaining how they fit together. Trump also said journalists could take part. [2] [3]

Trump said he would personally decide disputes between competing tipsters. "I'll make that determination. It'll be done expeditiously and fairly," he said, according to Fox News. Spectrum News reported that Trump called the arbitration binding, and Vance said, "Our plan is not to limit this just to criminal prosecution." Trump did not explain how tips would be vetted, Spectrum reported. [2] [3]

Why Shirley was the first recipient

Shirley drew national attention in December 2025 with a video questioning whether several Somali-run child care centers in Minnesota were legitimate businesses collecting federal subsidies, Fox News reported. The Deseret News said his 42-minute video drew tens of millions of views and that he later testified before the House Judiciary Committee. [2] [4]

The claims were contested. The AP reported that inspectors said the centers were "operating as expected." Investigations, searches and arrests followed, according to the AP. In July, Fahima Mahamud, a former child care center operator, pleaded guilty to wire fraud and conspiracy to defraud the United States over inflated meal reimbursement claims, the Justice Department said. The White House says Mahamud appeared in Shirley's video. [1] [2]

Shirley said at the event that he was motivated by concern for the "well-being of our tax dollars," the Deseret News reported, and said he hoped many more Americans would act in their own communities. [4]

Context and what comes next

Trump created a federal fraud task force in March and put Vance in charge of it, the AP reported. Spectrum News noted that the existing False Claims Act already pays whistleblowers 15% to 30% of funds recovered in federal contract fraud cases; Vance said most of the fraud his task force finds falls outside that law. [1] [3]

At the same event, Medicare and Medicaid chief Dr. Mehmet Oz announced a deferral of $1.2 billion in California Medicaid payments for personal care services, Fox News reported, a step separate from the tip program. Spectrum News reported that the administration's fraud.gov ledger claims $260.7 billion in fraud, waste and corruption found since January 2025, a figure news outlets say cannot be independently verified. The administration has not yet published detailed rules on how claims will be reviewed or paid. [2] [3]

Reporting sources

  1. Associated Press (via WSLS) · Trump and Vance to announce a $25M whistleblower program to encourage public to report alleged fraud ↗2026-10-20
  2. Fox News · Trump says he'll be 'arbiter' of fraud whistleblower incentive payouts ↗2026-10-20
  3. Spectrum News · Trump announces Fraud Whistleblower Incentive Program ↗2026-10-20
  4. Deseret News · Trump gives Utah's Nick Shirley $10,000 under new fraud reward program ↗2026-10-20

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