Scott Bessent is set to introduce a new initiative aimed at combating fraud in federal healthcare programs, offering financial incentives to individuals who help uncover wrongdoing. The program, expected to launch soon, will reward whistleblowers with between 10% and 30% of the fines collected from cases involving fraud against Medicare and Medicaid.

The rewards will be funded directly from penalties imposed on offenders, not from taxpayer money. Officials estimate that fraud in these programs costs more than $70 billion annually, making potential payouts for informants significant. Individuals both within the United States and abroad may qualify if their information leads to enforcement actions resulting in penalties exceeding $1 million.

The initiative mirrors an existing whistleblower system run by the Internal Revenue Service and reflects a broader effort by the administration of Donald Trump to address fraud across federal programs.

The move follows ongoing investigations into large-scale fraud operations, including cases involving misuse of government aid funds. One prominent example involves Feeding Our Future, where prosecutors allege that $250 million intended for child nutrition programs was diverted for personal luxury expenses.

As part of the crackdown, the Financial Crimes Enforcement Network (FinCEN) is expected to issue guidance encouraging financial institutions to monitor and report suspicious transactions linked to healthcare fraud. Authorities say common tactics include identity theft, fraudulent billing, and “upcoding,” with illicit proceeds often laundered through wire transfers, cryptocurrency, or high-value purchases.

The initiative builds on a wider anti-fraud strategy that includes a task force led by JD Vance, emphasizing a zero-tolerance approach to misuse of public funds and aiming to protect resources intended for those in need.