New Bill Offers Cash Rewards Up To 30% for Tips on Illegal Tech Exports, Adds Whistleblower Protections

The "Stop Stealing our Chips Act" proposes significant changes to the Export Control Reform Act of 2018, aiming to bolster national security by cracking down on illegal exports, particularly of sensitive technology like advanced AI chips. It introduces a new Whistleblower Incentive Program designed to encourage individuals with inside knowledge to report violations by offering substantial financial rewards – specifically, between 10% and 30% of any fines collected as a direct result of their original information. The bill mandates the Secretary of Commerce establish this program, including a secure online reporting portal, within 120 days.

Cash for Catching Tech Diversions

So, how does this reward system work? If you provide "original information" – meaning stuff the government doesn't already know, derived from your own knowledge, and not just repeating public allegations – about an export control violation, and it leads to a fine, you could be eligible for a payout. Think of an employee noticing irregularities in shipping manifests for high-tech components destined for restricted countries. The bill defines who qualifies, excluding federal employees acting in their official capacity and individuals on specific government sanctions lists. There are also rules about how the information was obtained; for instance, auditors or officers might be disqualified unless specific conditions are met, like reporting internally first without action for 120 days or if the info prevents substantial harm. Reports can initially be anonymous, potentially through a lawyer, though revealing your identity might be necessary later to collect an award.

Got Your Back: Protection from Payback

Worried about getting fired or demoted for blowing the whistle? This bill includes specific anti-retaliation protections. Employers are explicitly prohibited from discharging, demoting, harassing, or discriminating against employees who report potential violations under this program. If retaliation does occur, the affected individual has the right to take legal action. The potential relief includes getting their job back, receiving double the back pay owed plus interest, and covering legal costs. There's a time limit, though: legal action must generally be taken within six years of the retaliation, or three years from when the person knew about it, capped at ten years overall after the violation.

Keeping Secrets & Paying the Bills

Confidentiality is a major piece here. The Commerce Department is required to protect the identity of whistleblowers, with exceptions only if required by law, needed for public court proceedings, or when sharing information with other domestic or foreign government agencies under strict confidentiality agreements. To handle the financial side, the bill establishes a dedicated "Export Compliance Accountability Fund." This fund gets credited with amounts equal to the fines collected thanks to whistleblower tips. It will be used to pay the awards and cover the program's operational costs. Any money left over at the end of the fiscal year goes back to the U.S. Treasury's general fund. Interestingly, this new fund is also added as a potential source for the existing Crime Victims Fund.

The Fine Print: Rules and Realities

The process has timelines: the Secretary generally has 60 days to decide if a report is credible enough to investigate, and investigations should wrap up within 180 days, though extensions are possible for complex cases. Whistleblowers are supposed to get status updates every 30 days (minus sensitive details). It's not a free-for-all, however. The Secretary has the power to bar individuals from submitting future reports if they've repeatedly filed claims deemed not credible. Furthermore, while the reward range is set (10-30%), the exact amount is up to the Secretary's discretion, based on factors like the information's quality and impact. These discretionary elements and confidentiality exceptions are areas where the real-world application will matter significantly.