Pa. Lawmakers Struggle to Pass False Claims Law Despite Millions in Potential Recoveries

Advocates say the legislation would allow the state to recoup funds lost to fraud, but powerful interests have repeatedly blocked its passage.

Published on Feb. 23, 2026

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For over two decades, Pennsylvania lawmakers from both parties have pushed for a new law to crack down on fraudulent government spending and encourage whistleblowers to come forward. However, powerful health care and business interests have repeatedly blocked these efforts, arguing the legislation would lead to frivolous lawsuits and hurt rural hospitals. The proposed law would mirror the federal False Claims Act, which allows whistleblowers to file lawsuits on the government's behalf and receive a share of recovered funds. At least 29 other states have passed their own versions of the law, but Pennsylvania remains the largest state without one, missing out on millions in potential recoveries and a 10% bonus from the federal government.

Why it matters

Without a state false claims law, Pennsylvania is leaving money on the table and passing up another avenue to fight fraud. The federal False Claims Act has proven to be one of the government's most powerful tools against fraud, with over $6.8 billion in settlements and judgments recovered in the most recent fiscal year, mostly from whistleblower-initiated cases. Passing a state law could allow Pennsylvania to recoup millions more in taxpayer funds lost to fraud.

The details

The proposed Pennsylvania law would allow whistleblowers to file lawsuits on the state's behalf and receive a portion of any recovered funds. If the case involved Medicaid fraud, Pennsylvania would split the proceeds with the federal government and receive an additional 10% from the federal share. Opponents argue the law would encourage 'bounty hunters' to bring frivolous lawsuits, but the bill includes provisions to deter such cases. Supporters say the potential increase in recoveries would far outweigh the costs of implementing the law.

  • In 1999 and 2001, false claims bills passed the state House unanimously but stalled in the state Senate.
  • Similar measures were introduced in almost every legislative session between 2005 and 2025, but did not progress.
  • In 2019, then-Attorney General Josh Shapiro joined with a group of mostly Republican lawmakers to propose reforms, including a state false claims act, but the effort was unsuccessful.
  • A false claims bill introduced by Rep. Frank Burns (D., Cambria) eventually passed the state House with broad bipartisan support last summer, but has not advanced in the state Senate.
  • Democratic Gov. Josh Shapiro highlighted the issue in his budget address earlier this month, calling for the law to be passed.

The players

Josh Shapiro

The current Democratic governor of Pennsylvania, who has advocated for passing a state false claims act.

Lindsey Williams

A Democratic state senator who has introduced legislation to create a state false claims act.

Curt Schroder

The executive director of the Pennsylvania Coalition for Civil Justice Reform, which represents businesses and industry groups opposed to the bill.

Jesse Topper

A Republican state representative who voted against the false claims bill that passed the state House, arguing it did not do enough to prevent frivolous lawsuits.

Eric Weitz

The president of the Pennsylvania Association for Justice, which represents trial lawyers and supports the false claims legislation.

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What they’re saying

“Let's finally get it done.”

— Josh Shapiro, Governor (State of the State Address)

“There is money that is being wasted, and we have an opportunity to do the best job we can to get that recovered.”

— Lindsey Williams, State Senator (Spotlight PA)

“It becomes lawsuit abuse masquerading as fighting abuse.”

— Curt Schroder, Executive Director, Pennsylvania Coalition for Civil Justice Reform (Spotlight PA)

“We need to ensure businesses and hospitals are also sustainable.”

— Jesse Topper, State Representative (Spotlight PA)

“Would you rather have to pay 30% to get another 20, 50, 100 million dollars per year or just not have it at all?”

— Eric Weitz, President, Pennsylvania Association for Justice (Spotlight PA)

What’s next

The state Senate has not advanced the false claims bill that passed the state House last year, but it could be folded into this year's budget negotiations. Republican state Treasurer Stacy Garrity, a likely opponent of Gov. Shapiro in the gubernatorial race, has previously expressed support for the legislation.

The takeaway

The long-running effort to pass a state false claims act in Pennsylvania highlights the challenges of enacting reforms in the face of opposition from powerful interests. While the potential to recover millions in taxpayer funds lost to fraud is clear, the state has struggled to find a compromise that satisfies all stakeholders. Ultimately, the decision will come down to whether lawmakers prioritize closing this gap in the state's anti-fraud efforts or continue to leave those funds unclaimed.