Federal Watchdogs Get Teeth: New FALCON Act Mandates 60-Day Compliance Window for IG Requests

The FALCON Act of 2025, officially the Fast Action for Lawful Compliance with Oversight Needs Act, is all about giving federal Inspectors General (IGs)—the government’s internal watchdogs—some real authority. Simply put, this bill creates a hard deadline for anyone working with federal agencies to cooperate with an IG investigation. If the IG asks for documents, access, or an interview (a "covered request"), employees, grant recipients, and contractors now have 60 days to hand it over.

The 60-Day Clock: What Happens If You Drag Your Feet?

This is where the rubber meets the road. If you’re a federal employee or a recipient of federal grant money and you blow past that 60-day deadline without a good reason, you could face “appropriate administrative discipline.” Think suspension or, in serious cases, termination. If you’re a contractor—say, a company building software for the VA or roads for the DOT—your non-compliance could lead to an “adverse contract action,” meaning the government can penalize or even end your contract. The agency head you work for makes the final call on that discipline, which gives them a clear mechanism to enforce cooperation, but also grants them significant, undefined discretion in deciding the punishment.

Accountability Gets a Public Spotlight

One major goal of the FALCON Act is to minimize the bureaucratic stonewalling that often slows down oversight investigations. If the IG determines someone failed to comply within the 60 days, they can’t just let it slide. They have to notify Congress—specifically the Senate Homeland Security and Governmental Affairs Committee and the House Oversight and Government Reform Committee—and the agency head within 30 days. This report must be unclassified and include the non-compliant person’s job title or the entity’s name, essentially putting a spotlight on who is obstructing the investigation. This mandatory reporting mechanism is designed to add political pressure and transparency to the oversight process.

Exceptions and the Fine Print

While the bill strengthens the IG's hand significantly, it does include necessary exceptions. The IG cannot demand information if existing law specifically limits access, or if the request involves certain classified national security information. For instance, the Secretaries of Defense or Homeland Security can still block access based on existing security or legal restrictions. While these exceptions are standard for protecting sensitive data, they do create potential friction points where an agency head could, in theory, use the security shield to delay or obstruct a legitimate investigation, particularly if it involves high-level officials.

What This Means for the Everyday Federal Worker

If you are a federal employee, this bill serves as a clear, written warning: when the IG calls, you must cooperate promptly. Agency heads are required to notify all personnel in writing within 30 days of this law passing that they must comply with IG requests within 60 days or risk discipline. For contractors and grant recipients, this means that delaying an IG audit or access request is no longer just a slow bureaucratic process—it’s a direct violation that can cost you your contract or funding. The FALCON Act is essentially tightening the screws on accountability, making sure that when the government’s internal auditors start asking questions, they get answers quickly and completely.