SEC Whistleblower Program Sees Dip in Awards, But Remains Vital to Investor Protection

Outten & Golden analysis finds program still has significant contingent liabilities and continues to receive record number of tips

Published on Feb. 12, 2026

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The Securities and Exchange Commission (SEC) released its Annual Report to Congress on the Dodd-Frank Whistleblower Program for Fiscal Year 2025, which detailed a drop in the amount of whistleblower awards issued compared to the prior year. However, the report also highlighted the program's ongoing importance, with the SEC receiving a record number of tips and maintaining significant contingent liabilities for future awards.

Why it matters

The SEC whistleblower program plays a crucial role in uncovering corporate misconduct and promoting market integrity. While the decrease in awards issued in FY 2025 reflects the agency's reduced enforcement staff and shifting priorities, the program continues to be a vital tool for empowering individuals to report securities fraud and other violations, ultimately protecting investors.

The details

The SEC awarded more than $60 million to 48 individual whistleblowers in FY 2025, a decline from the $255 million awarded in the prior fiscal year. This drop was attributed to a 17% reduction in the SEC's headcount and evolving enforcement priorities under the new administration. However, the report noted that the SEC has set aside a range of $218 million to $655 million in probable contingent liabilities for future whistleblower awards, underscoring the program's ongoing financial impact.

  • The SEC released its Annual Report to Congress on the Dodd-Frank Whistleblower Program for Fiscal Year 2025 on February 12, 2026.
  • In FY 2025, the SEC received approximately 27,000 tips from individuals, an 8% increase from the prior year.

The players

Outten & Golden

A law firm that has tirelessly advocated for workplace justice and equity, and has recovered more than $1.3 billion for employees.

Dave Jochnowitz

Co-Chair of Outten & Golden's Whistleblower & Retaliation Practice Group.

Tammy Marzigliano

Co-Chair of Outten & Golden's Whistleblower & Retaliation Practice.

Blake Eastman

Director of Business Development & Communications at Outten & Golden.

Securities and Exchange Commission (SEC)

The federal agency responsible for regulating the securities industry, including the Dodd-Frank Whistleblower Program.

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What they’re saying

“These contingent liabilities underscore that the whistleblower program's financial footprint extends well beyond the awards announced in any single fiscal year. More importantly, it suggests that significant award obligations remain in the pipeline.”

— Dave Jochnowitz, Co-Chair of Outten & Golden's Whistleblower & Retaliation Practice Group (PRNewswire)

“With 27,000 tips submitted in the last fiscal year, the agency is forced to do more with less. In that regard, more than ever, the Commission needs whistleblowers to come forward with early, actionable intelligence about securities fraud.”

— Dave Jochnowitz, Co-Chair of Outten & Golden's Whistleblower & Retaliation Practice Group (PRNewswire)

“The SEC has taken a strong stance to keep reporting lines open. It can and should continue to encourage whistleblowing by holding companies accountable for silencing employees through unlawful separation agreements.”

— Tammy Marzigliano, Co-Chair of Outten & Golden's Whistleblower & Retaliation Practice (PRNewswire)

“Robust employment protections and the ability to report anonymously when working with an attorney are central to the SEC's program, and key drivers of its success.”

— Tammy Marzigliano, Co-Chair of Outten & Golden's Whistleblower & Retaliation Practice (PRNewswire)

What’s next

The SEC is expected to continue its efforts to encourage whistleblowing and hold companies accountable for attempting to silence employees, as it seeks to maintain the integrity of the financial markets.

The takeaway

While the SEC Whistleblower Program saw a dip in awards in FY 2025, it remains a vital tool for uncovering corporate misconduct and protecting investors. The program's ability to receive a record number of tips and maintain significant contingent liabilities for future awards underscores its ongoing importance in the agency's enforcement efforts.