#EndTheWaste — A Y Institute Initiative

    GAO estimated
    $233–521 billion
    in annual direct federal
    losses to fraud.

    Modeled range based on averaged FY2018–2022 data. GAO-24-105833, published April 16, 2024.Source: gao.gov

    The Fraud Bounty Initiative proposes a federal citizen-bounty framework for American citizens, with awards up to 30% of recovered funds modeled on existing whistleblower laws. It requires new federal law and is not current government-wide law.

    That includes waste involving government agencies and the nonprofits, contractors, and organizations that receive taxpayer funds. Majority of recoveries would return to the Treasury.

    Support the Fund
    Improper payments are distinct from fraudGAO’s fraud range should not be added to OMB improper-payment totals
    Proposed model • Requires new law
    Educational illustration

    See your state population-share
    illustration of the national range.

    We allocate GAO’s $233–521B modeled national fraud-loss range by state population share. This is not an official state total and does not measure where fraud occurs.

    Educational illustration only. This allocates GAO’s national modeled range by state population share. It is not an official state total and does not measure fraud occurring in your state.

    i

    Educational illustration only. This allocates GAO’s national modeled range by state population share. It is not an official state total and does not measure fraud occurring in your state. We do not store street address; only state-abbreviation for personalization.

    How it would work — Proposed model

    A practical system that already exists — just not for general taxpayers.

    The federal government already rewards whistleblowers in specific programs. The Fraud Bounty Initiative proposes to apply similar incentive structures to broader taxpayer funds — transparently and with new legislative authority.

    No general government-wide citizen bounty exists today
    01

    Submit Evidence (Proposed)

    Proposed: Citizens would submit documented evidence of waste, fraud, or improper payments involving government agencies and the nonprofits, contractors, grantees, and organizations that receive taxpayer funds. Portal does not exist yet.

    02

    Independent Review (Proposed Body)

    Proposed, not existing: A non-partisan review board would evaluate submissions against existing audit standards, statute, and documented evidence. No such government review body exists today for general citizen bounties.

    03

    Recovered-Funds Split (Proposed)

    Proposed recovered-funds split: the majority returns to the Treasury; a citizen award of up to 30% would be modeled on existing whistleblower statutes. This requires new law or formal authority. It is not current government-wide law.

    04

    Transparency Dashboard (Proposed)

    Proposed: Every recovery, every finder’s fee, every case outcome would be published on a public transparency dashboard. If taxpayers paid for it, taxpayers could see it. Dashboard is conceptual.

    Existing whistleblower comparisons (actual law today)

    False Claims Act (31 U.S.C. § 3730)
    Relator awards generally 15–25% when government intervenes and 25–30% when it declines, in qualifying qui tam cases. Not a general citizen bounty.
    law.cornell.edu — 31 U.S.C. 3730
    SEC Whistleblower
    Awards 10–30% of monetary sanctions over $1M in qualifying SEC enforcement actions. Securities-specific.
    sec.gov/whistleblower
    IRS Whistleblower
    Awards generally 15–30% in qualifying tax cases meeting thresholds. Tax-specific.
    irs.gov — whistleblower award

    The Fraud Bounty Initiative’s up to 30% is a proposal modeled on these statutes. It is not current law for general federal waste, and would require new legislation or formal government authority. No general government-wide citizen bounty exists today.

    NoteAny future bounty system requires legislation or formal government authority. This page advocates for that proposed law.
    Minnesota case scale · Hypothetical payoutExample only · requires future law

    One binder of receipts could have been generational.

    Feeding Our Future was described by DOJ as a roughly $250 million scheme involving federal child nutrition programs. Use that scale once, correctly, and the proposed bounty math gets meme-ready fast.

    Proposed recovery sequenceHypothetical · 4 steps
    01
    Original documented evidence
    A citizen keeps invoices, meal counts, shell-company filings. Original information, not public news. The kind of paperwork everyone else walked past.
    02
    Validation → prosecution
    Independent reviewers verify the documents against statute and audit standards. DOJ builds the case. Feeding Our Future ultimately led to charges against ~79 people.
    03
    Actual recovery — $250M hypothetical
    For this example only, assume the full $250M characterized scheme results in $250M successfully recovered to the Treasury. This did not happen as stated — it is a math illustration.
    04
    Proposed award split
    Under the proposed model, a qualifying whistleblower could receive up to 30% of recovered dollars. 70% returns to taxpayers. Requires future law.
    !

    DOJ’s September 2022 charging announcement described Feeding Our Future as a $250M scheme and alleged more than $240M was fraudulently obtained and disbursed. This example assumes a full $250M recovery only to show the proposed math. It is not a statement that $250M was recovered.

    Unmistakable math
    Hypothetical total recovered
    $250M
    Example assumes full recovery for illustration only
    Max proposed award
    $75M
    30% hypothetical · proposed law
    Back to taxpayers
    $175M
    70% still returns even at max award
    Three proposed payout tiers — same recovery
    10%
    proposed · at 10% of $250M recovered
    $25M proposed award
    20%
    proposed · at 20% of $250M recovered
    $50M proposed award
    30%
    proposed max · at 30% of $250M recovered
    $75M proposed award
    Meme-ready line

    “The paperwork everyone ignored could rewrite your family tree.”

    Original documented evidence — not screenshots of the news — is what would qualify under a future bounty law. Save the receipts.

    Official source · scale only

    DOJ described Feeding Our Future as a $250 million scheme and alleged more than $240 million was fraudulently obtained and disbursed. We use the $250M characterization only to show how a future citizen bounty model could scale. No other Minnesota program totals are used here.

    DOJ Sept 2022 · Feeding Our Future charging announcement
    Required caveat
    • Hypothetical only — assumes full $250M recovery to illustrate proposed math. Not a statement that $250M was recovered.
    • No general government-wide citizen bounty exists today. Any future award requires new legislation, qualifying original evidence, successful recovery, and official case resolution.
    • No implication that any Feeding Our Future whistleblower received, earned, or is entitled to these amounts.
    • All percentages labeled as proposed and based only on successfully recovered money. 30% proposed = $75M award, $175M returns to taxpayers.
    For the middle 80%

    Working taxpayers
    lose this money
    twice.

    Once when their tax dollars disappear into waste and fraud instead of roads, schools, and services. And again when those services get weaker because the money is gone.

    A school district overcharged by a contractor. A nonprofit that claimed to house veterans but spent the grant on luxury travel. A software vendor that billed for licenses no agency used. Every dollar that leaves without results reduces what working families receive in return.

    The Fraud Bounty Initiative proposes to turn citizens into watchdogs — and would reward them under future law if recovery succeeds.

    This is not about politics. It is about accountability. If you pay into the system, you should have a real tool to protect it — pending legislation.

    Reported improper payments — distinct from fraud
    $236B
    FY2023 reported
    $162B
    FY2024 reported
    Improper payments can include overpayments, underpayments, payments to ineligible recipients, or payments without sufficient documentation to verify eligibility. They are not synonymous with fraud and should not be added to GAO’s fraud range.
    $233–521B
    GAO estimated annual direct federal losses to fraud — modeled range based on averaged FY2018–2022 data (GAO-24-105833, April 16, 2024). Not same as improper payments.
    GAO-24-105833 →
    Illustrative national division (not a charge)
    $233–521B ÷ ~133M total U.S. households ≈ $1,750–$3,900 per household nationally
    This is an illustrative division to show scale. It is not a bill, tax estimate, or direct household cost. Working households feel the impact through weaker services, not a direct charge.
    ✓
    Proposed: up to 30% finder’s award
    Modeled on existing whistleblower laws. Majority would return to the public treasury if authorized by future law. Requires legislation.
    Help surface the numbers

    Share the Fraud Bounty Initiative — GAO $233–521B modeled range, proposed citizen award, educational illustration.

    The path to law

    A real bounty system
    requires real law.

    No one can promise finder's fees without legislation and formal government authority. What we can do now is build three things that make that law possible: the coalition, the legal framework, and the public pressure.

    Y Institute is drafting model legislative language, mapping existing qui tam and whistleblower precedents, and building a non-partisan coalition of taxpayers, auditors, journalists, and former inspectors general who know where the waste lives.

    What the fund builds

    1
    Coalition Building
    Non-partisan outreach to retired IG offices, audit firms, journalists, and taxpayer groups. Real stories, not talking points.
    2
    Legal Architecture
    Draft bill language that mirrors proven whistleblower programs. Clear standards for evidence, review, and payout.
    3
    Public Proof
    Transparency dashboard prototype showing how recoveries, fees, and case outcomes would be published for everyone to verify.
    Support the work

    This work moves forward because people back it.

    For now, the simplest way to support the Fraud Bounty Initiative is through Y Institute membership. These are ongoing monthly memberships that fund research, legal drafting, and coalition building across all Y initiatives — not a direct bounty pool and not a dedicated public fundraising counter.

    What you're funding

    Member support helps us publish model legislation, document precedent programs, convene former auditors and IGs, and keep this research independent — no ads, no corporate backing.

    Community Supporter
    $5/ month

    Stay connected to what's forming. Monthly briefings and the signal worth keeping.

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    $10/ month

    Early access to frameworks, research notes, and direct insight dispatches from the team.

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    Impact Partner
    $20/ month

    Everything above, plus named acknowledgment in the foundation and a seat in shaping what comes next.

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    These are Y Institute monthly membership support options processed securely by our payment partner. They fund Y Institute's broader non-partisan research and advocacy, including the Fraud Bounty Initiative, and are not direct payments into a bounty pool. Membership contributions are not presented as tax-deductible charitable donations.

    Plain facts. Clear solutions. Shared power.

    The Fraud Bounty Initiative is a project of Y Institute

    Sources & methodology

    Figures accessed and reviewed July 30, 2026. Fixed fiscal-year figures are used to avoid ambiguity.
    GAO-24-105833, April 16, 2024
    Estimated $233–521B annual direct federal losses to fraud (modeled range based on averaged FY2018–2022 data).
    gao.gov — fraud estimate
    PaymentAccuracy.gov
    OMB-reported improper payments: ~$236B FY2023 and ~$162B FY2024. Distinct from fraud.
    paymentaccuracy.gov
    GAO-24-106927
    Context on improper payments and fraud risks.
    gao.gov — GAO-24-106927
    U.S. Census Vintage 2023 - NST-EST2023-POP
    State resident population estimates, July 1, 2023. Used for population-share illustration only.
    census.gov — Vintage 2023
    31 U.S.C. § 3730 – False Claims Act awards
    Relator share 15–25% gov intervenes, 25–30% declines. No general gov-wide bounty today.
    law.cornell.edu — 3730
    SEC Whistleblower & IRS Whistleblower
    SEC 10–30%, IRS generally 15–30% in qualifying cases. Program-specific.
    sec.gov / irs.gov

    Methodology — illustrative state population-share: (state Vintage 2023 resident population ÷ sum of 50 states + DC Vintage 2023 populations) × GAO national $233–521B modeled range. GAO cautions its national percentage should not be applied to individual agencies, programs, or states. This illustration is educational only and does not measure fraud occurring in your state.

    Household division: $233–521B ÷ ~133M total U.S. households ≈ $1,750–$3,900 per household nationally. Illustrative division for scale. Not a bill, tax estimate, or direct household cost.

    Fraud vs improper payments: GAO’s $233–521B is modeled direct fraud losses. OMB’s $236B (FY2023) and $162B (FY2024) are reported improper payments (overpayments, underpayments, ineligible, insufficient documentation). They are distinct measures and should not be added.

    Award proposal: Up to 30% is a proposed citizen award requiring new law or formal authority. It is modeled on existing whistleblower laws (False Claims Act 15–25% intervened / 25–30% declined; SEC 10–30%; IRS 15–30% qualifying). No general government-wide citizen bounty exists today.

    Planning target: $50,000 and $15K/$20K/$15K split are Y Institute internal planning targets, not government data or audited costs. No live fundraising total is displayed on this page.

    Want to go beyond this initiative? Join Y Institute as a member to support our ongoing research, tools, and community. Membership is separate from contributing to the Fraud Bounty fund.

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    © 2026 Y InstituteFraud Bounty Initiative — education and advocacy for real accountability • Figures accessed July 30, 2026