Safeguarding Federal Research Funds: The False Claims Act's Role in Combating Grant Fraud

Benefits Fraud and Improper PaymentsHouse Science, Space, and Technology Subcommittee on Investigations and Oversight · 2026-06-24 · 119th Congress
The House Science, Space, and Technology Subcommittee on Investigations and Oversight held this hearing to examine how the False Claims Act (FCA) is used to combat fraud in federally funded research, including false certifications, undisclosed foreign funding, and cybersecurity violations. Begins at 0:10:55
Transcript
Highlights

Title

False Claims Act enforcement against research grant and cybersecurity fraud

Purpose

The House Science, Space, and Technology Subcommittee on Investigations and Oversight held this hearing to examine how the False Claims Act (FCA) is used to combat fraud in federally funded research, including false certifications, undisclosed foreign funding, and cybersecurity violations. Witnesses from the Department of Justice, NASA's Office of Inspector General, and the National Science Foundation's Office of Inspector General described enforcement priorities and recent settlements, while Democratic members challenged DOJ's use of the FCA against diversity, equity, and inclusion (DEI) programs and questioned the committee's jurisdiction over DOJ. Begins at0:10:55

Who spoke

Chairman McCormick (subcommittee chair)0:10:55: Opened the hearing citing a GAO estimate of $233–521 billion in annual federal fraud0:11:49 and DOJ's record $6.8 billion FCA recovery in the last fiscal year0:12:21; later questioned whether FCA recoveries reflect a "success story" or a larger scale of undetected fraud1:45:02 and pressed Springmann on interagency data-sharing gaps1:47:37.

Ranking Member Sykes (D-OH)0:17:19: Argued the committee lacks jurisdiction over DOJ and accused the majority of using a "fraud theme" hearing to avoid scrutinizing the administration's cuts to research funding0:17:47; cited $20 million in NASA funding generating $56 million in economic impact0:18:39; later pressed Jenny on DOJ's February 2026 remarks calling DEI a "priority" for expedited FCA treatment0:52:240:53:24.

Chairman Babin (full committee chair)0:22:18: Cited the $233–521 billion fraud estimate and the $6.8 billion FCA recovery figure0:23:40; later asked Jenny how much of DOJ's recoveries came specifically from universities0:48:02 and Springmann/Steinau about referral criteria and program-officer training0:49:560:51:03.

Ranking Member Lofgren (full committee, D-CA)0:27:59: Questioned the committee's fit for an FCA hearing and cited decades of bipartisan legislation promoting STEM diversity0:30:40; later pressed Jenny on whether DOJ is investigating the "Greenwater Solutions" reflecting-pool contract as a potential FCA case1:03:241:04:54, which Jenny declined to confirm1:04:54.

Brenna Jenny, DOJ Deputy Assistant Attorney General0:33:00: Described FCA treble-damages liability and the $6.8 billion FY2025 recovery0:33:58; identified undisclosed foreign funding, falsified research data/images, and cybersecurity violations as key focus areas0:35:09, citing five foreign-disclosure settlements0:36:21 and $52 million from nine cybersecurity settlements1:18:36; defended DOJ's DEI-related FCA theory as based on long-standing anti-discrimination rules rather than novel policy0:54:050:55:17.

Jennifer Springmann, NSF OIG Special Agent in Charge0:38:20: Said NSF OIG investigations produced 15 FCA settlements recovering nearly $9 million over 10 years0:39:26; described proactive reviews as more effective than reactive hotline complaints for detecting foreign-influence non-disclosure0:40:45; noted state universities can raise sovereign-immunity defenses that private institutions cannot1:20:51, and confirmed her office lost staff on its research-integrity team but "pivoted" to remain compliant1:14:50.

Robert Steinau, NASA OIG (senior official performing IG duties)0:42:46: Said NASA's research-security caseload has grown sevenfold over the last decade0:43:53; cited a $1.25 million cybersecurity FCA settlement0:45:22 and nearly 400 proactive projects recovering about $30 million of a $93 million impact0:45:52; said reliance on self-certification, rather than site visits, is a key oversight gap1:22:00.

Rep. Webster (R-FL)0:57:47: Asked Springmann about common post-award disclosure omissions0:58:08 and subrecipient monitoring gaps0:59:20, and asked Jenny about a uniform government-wide foreign-disclosure framework1:00:11.

Rep. Issa (R-CA)1:07:59: Asked witnesses whether they use DATA Act machine-readable data for proactive fraud detection1:08:26; asked Jenny about DOJ's "Focus Data Miner Initiative" for whistleblowers1:09:35 and DOJ's return on investment, cited at about $3 per dollar spent1:13:13.

Rep. Bonamici (D-OR)1:13:28: Questioned why NSF OIG's research-misconduct investigative capacity was reduced by staffing losses1:14:19; asked Jenny whether a university program to recruit more women in STEM could face FCA liability1:15:23, which Jenny said depends on the specific certification1:16:16.

Rep. Biggs (R-AZ)1:18:15: Asked Jenny how many of the nine cybersecurity settlements originated from whistleblowers (five of nine, ~$24 million)1:18:36; asked whether individuals, not just institutions, are held personally liable in FCA settlements1:19:21; asked Steinau about persistent Higher Education Act Section 117 non-disclosure violations1:21:40.

Rep. Whitesides (D-CA)1:23:32: Presented a chart showing NSF award disbursements down roughly 60–70% in 2026 versus prior years [0:23:58–0:24:24 timestamp cite 1:23:58]; asked whether a proposed OMB rule requiring political-appointee pre-approval of grants and non-binding peer review is damaging science1:25:441:26:28.

Rep. Hardopolous1:27:38: Cited Duke's $112 million 2019 settlement, Stanford's $1.9 million, and other university settlements1:28:38; asked whether any individuals faced criminal penalties (Jenny said no parallel criminal proceedings)1:29:29; questioned why Duke still received $710 million in grants the following year1:30:26.

Rep. Foster (D-IL)1:32:47: Argued the "Golden Dome" missile-defense program represents orders-of-magnitude larger potential waste than university grant fraud1:33:04; asked Springmann whether NSF OIG will scrutinize new "X-Labs" venture-style funding mechanisms and "other transactions" authority1:35:071:35:37.

Rep. Harrington1:38:05: Asked witnesses how grant fraud erodes trust in the scientific community1:38:33; asked whether increased fraud enforcement has slowed scientific progress, prompting Steinau to say enforcement enhances rather than damages science1:41:181:42:08.

Key moments

GAO's 2024 estimate that federal fraud costs $233–521 billion annually was cited repeatedly by both chairmen as framing for the hearing0:11:490:23:40.

DOJ recovered a record $6.8 billion in FCA settlements and judgments in FY2025, with nearly 1,300 whistleblower (qui tam) cases accounting for more than $5.3 billion of that total0:12:210:12:51.

Sharp exchange between Sykes and Jenny over DOJ's February 19, 2026 remarks that "DEI is a priority" for expedited FCA treatment; Jenny said cases rest on FAR anti-discrimination provisions barring race/sex-based hiring decisions, not DEI programs generally0:52:540:56:53.

Lofgren pressed Jenny on whether DOJ is investigating the Trump-donor-linked "Greenwater Solutions" $1.7 million no-bid reflecting-pool contract as potential fraud; Jenny cited department policy against commenting on investigations1:04:131:04:54.

Whitesides displayed a chart showing NSF grant disbursements roughly 60–70% below prior years through June 2026, tying it to a proposed OMB rule requiring political-appointee pre-approval of discretionary grants and non-binding peer review1:23:581:25:44.

Jenny disclosed that of nine FY2025 cybersecurity FCA settlements totaling $52 million, five originated from whistleblowers (~$24 million) and four from agency referrals (~$28 million)1:18:36.

Hardopolous noted Duke University paid a $112 million settlement in 2019 for falsified research data yet received $710 million in federal grants the following year, questioning whether penalties deter repeat offenses; Jenny said DOJ factors recidivism into resolutions1:30:261:31:12.

Springmann identified sovereign-immunity defenses raised by public universities as a gap making private institutions comparatively easier to hold accountable under the FCA1:20:51.

Steinau said NASA's research-security caseload has grown sevenfold over the past decade and that reliance on self-certification without site visits remains a core oversight gap0:43:531:22:00.

Jenny stated DOJ estimates a return on investment of about $3 recovered for every dollar spent on civil fraud enforcement1:13:13.

Metadata

CommitteeHouse Science, Space, and Technology Subcommittee on Investigations and Oversight
Chamber / CongressHouse · 119th Congress
Date2026-06-24
TypeHearing
Witnesses
Ms. Brenna Jenny — Deputy Assistant Attorney General for Commercial Litigation Branch, U.S. Department of Justice
Mr. Robert Steinau — Senior Official Performing the Duties of Inspector General, National Aeronautics and Space Administration Office of Inspector General
Ms. Jennifer Springmann — Special Agent in Charge, U.S. National Science Foundation, Office of Inspector General
Videoyoutube
Transcript299 caption blocks · 15,702 words · 1:49:32 runtime
EventCongress.gov 119390