New Law Creates State Department Whistleblower Program for Arms Export Control Violations, Offering 10-30% of Penalties

Ever wonder what happens when someone tries to sneak restricted military gear out of the country? Or how the government finds out about it? Well, a new piece of legislation, the Whistleblowers Aiding National Security Act of 2025, is setting up a direct pipeline for those tips, making it easier for folks to report violations of arms export controls and actually get rewarded for it.

Speaking Up for National Security

This bill establishes a brand-new Defense Exports Control Whistleblower Incentive Program within the State Department. Think of it as a dedicated hotline, but with serious incentives. Within 120 days of this law kicking in, the State Department has to roll out an interim rule for the program, with a final rule following within 270 days. The goal is to get this program up and running quickly, making sure everyone knows about it through a public notice in the Federal Register.

Your Information, Your Reward

So, how does it work? If you’ve got original information about someone violating, attempting to violate, or even conspiring to violate arms export regulations—stuff like the International Traffic in Arms Regulations (ITAR)—you can submit it. "Original information" means it's from your own knowledge or analysis, not already known to the Secretary, and not just pulled from public news unless you were the original source. The program will even set up a secure online portal within 120 days, so you can report safely. You can even submit anonymously through a lawyer, though you might have to reveal your identity before collecting an award.

The State Department will then review your info for credibility within 60 days. If it checks out, they’ll launch an investigation, aiming to wrap it up within 180 days. You’ll get updates every 30 days, keeping you in the loop without spilling any sensitive details. If your tip leads to a civil penalty, you could get an award ranging from 10% to 30% of that penalty. The exact percentage depends on how significant your information was and how much help you provided. This means if a company gets hit with a $10 million fine because of your intel, you could be looking at anywhere from $1 million to $3 million.

Who's In and Who's Out

Now, not everyone is eligible for an award. If you got the information by breaking federal or state criminal law, you're out. Also, if you're part of an entity's internal compliance or legal team, you generally can't claim an award. However, there's a crucial exception for those internal folks: if you reasonably believed the disclosure was needed to prevent significant harm to national security, or if you thought the entity was trying to block an investigation, you might still be eligible. But you’d need to have reported it internally first and waited at least 120 days.

Protection and Privacy

One of the biggest concerns for whistleblowers is retaliation, and this bill tackles that head-on. Employers are explicitly prohibited from firing, demoting, suspending, or otherwise discriminating against anyone who submits information or participates in this program. If an employer does retaliate, the whistleblower can sue in federal court and seek reinstatement, back pay (double the amount owed, plus interest), and even get their legal costs covered. This protection is a huge deal for anyone considering coming forward, though it doesn’t cover those who knowingly submit false information.

Your identity is also protected. The State Department generally can't reveal who you are. While there are exceptions—like if it's necessary for a public proceeding or needs to be shared with specific government agencies like law enforcement or national security agencies—confidentiality is the default. This is designed to give whistleblowers peace of mind, knowing their identity won't just be casually tossed around.

Funding the Fight

To make sure there's money to pay these awards, the bill creates a special Defense Export Compliance Accountability Fund in the U.S. Treasury. This fund gets its cash directly from the fines collected in cases that came from whistleblower information. So, the program is self-sustaining: the bad actors fund the rewards for those who expose them. The Secretary of State, specifically through the Deputy Assistant Secretary for Defense Trade Controls, will be overseeing all of this, and they’ll even be reporting annually to Congress on the program's activities and awards. This bill really aims to put some teeth into arms export control enforcement, giving everyday people a direct role in national security.