Kansas Proposes Incentives for State Workers to Report Fraud, Waste

A state senator wants to reward public employees who identify cost savings through whistleblowing

Published on Feb. 14, 2026

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A Kansas state senator has introduced a bill that would provide a 10% financial incentive to state employees who report fraud, waste or abuse of government funds, inspired by similar programs in the corporate world. The proposal aims to encourage state workers to identify inefficiencies and save taxpayer money, though some lawmakers raised concerns about potential misuse of the whistleblower system.

Why it matters

The bill is part of a broader push to improve government efficiency and accountability in Kansas. While the incentive program could lead to significant cost savings, there are questions about how to prevent abuse of the system and ensure legitimate whistleblowing is protected.

The details

Senate Bill 450, introduced by Republican Sen. Michael Murphy, would allow state employees to receive 10% of any savings identified through their reporting of fraud, waste or abuse of government funds. Murphy said he was inspired by a similar program at his former employer, United Airlines, that rewarded workers for finding ways for the company to save money. However, some lawmakers expressed concerns about the potential for the system to be misused for personal vendettas against co-workers.

  • The bill was introduced in the Kansas Senate in February 2026.
  • A hearing on the bill was held on February 14, 2026 before the Senate Committee on Government Efficiency.

The players

Sen. Michael Murphy

A Republican state senator from Sylvia, Kansas who introduced Senate Bill 450 to provide financial incentives for state employees to report fraud, waste and abuse.

Sen. Larry Alley

A Republican state senator from Winfield, Kansas who said a similar program existed when he worked at Boeing.

Sen. Cindy Holscher

A Democratic state senator from Overland Park, Kansas who expressed concerns about the potential for misuse of the whistleblower system.

Sen. Renee Erickson

A Republican state senator from Wichita and chair of the Senate Committee on Government Efficiency.

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What they’re saying

“So if an employee sees something, whether it's just fraud or it's waste or inefficiencies, whatever like that, if they can bring something like that forward and save tax dollars and they can be rewarded for doing that, this encourages them to do that and kind of gives them an ownership.”

— Sen. Michael Murphy (Kansas Reflector)

“What prevents people from trying to get back at people through whistleblowing?”

— Sen. Cindy Holscher (Kansas Reflector)

“I'm not going to say it won't happen. We know it happens. But this isn't so much of an 'I'm going to get you,' this is more like, 'I see something here that's going on that maybe we can take care of and I can benefit from it.'”

— Sen. Michael Murphy (Kansas Reflector)

What’s next

The Senate Committee on Government Efficiency will continue to consider Senate Bill 450 and may make recommendations to the full Kansas Senate.

The takeaway

This proposal aims to tap into public employees' knowledge and incentivize them to identify waste and inefficiencies in state government. However, there are valid concerns about the potential for abuse that will need to be carefully addressed if the program is implemented.