PolicyBrief
S. 874
119th CongressMar 5th 2025
Expanding Whistleblower Protections for Contractors Act of 2025
IN COMMITTEE

The "Expanding Whistleblower Protections for Contractors Act of 2025" broadens protections for contractors and subcontractors who report waste, fraud, abuse, or dangers to public health and safety related to federal contracts and grants, ensuring they cannot be retaliated against for such disclosures.

Gary Peters
D

Gary Peters

Senator

MI

LEGISLATION

Whistleblower Protections Expand to Cover Contractors, Ban Forced Arbitration Under New Bill

The "Expanding Whistleblower Protections for Contractors Act of 2025" significantly strengthens protections for employees of federal contractors and subcontractors who report wrongdoing. This bill isn't just for defense contractors – it covers a wide range of workers across the federal government, including those at NASA and other agencies.

Speaking Up Without Getting Shut Down

The core of the bill is simple: If you work for a company that contracts with the federal government (or a subcontractor), you're protected from retaliation if you report waste, fraud, abuse, or something that endangers public health or safety. This includes gross mismanagement of contracts or grants, and even covers situations where you refuse an order that would break the law (Section 2 & 3). Before, these protections were narrower. Now, they extend to more workers, including those providing personal services under contract.

Real-World Impacts

Imagine a software developer working for a company contracted by the Department of Defense. If they discover their project is vastly over budget and mismanaged, they can now report this without fear of losing their job. Or, consider a construction worker on a federal building project who sees a safety violation. This bill ensures they can speak up without fear of being fired or demoted (Section 2 & 3). It also means that if your boss tells you to do something illegal related to a government contract, and you refuse, you're protected. Crucially, the bill explicitly states that these protections cannot be waived by any agreement, policy, or condition of employment, including those pre-dispute arbitration agreements that often keep issues behind closed doors(Section 2 & 3).

No More Secret Reprisals

The bill also tackles a subtle but important issue: executive branch officials trying to pressure contractors to retaliate against whistleblowers. The legislation prohibits this and allows for disciplinary action against officials who try (Section 2 & 3). This adds another layer of protection, making it clear that retaliation, even indirect, is unacceptable. Think of it as closing a loophole that could have allowed for quiet pressure on contractors to silence potential whistleblowers.

Bigger Picture

This bill builds upon existing laws like 10 U.S. Code and 41 U.S. Code, Section 4712, broadening and strengthening whistleblower protections. It's a move towards greater transparency and accountability in how taxpayer money is spent and how government contracts are managed. While the bill aims to protect legitimate whistleblowers, a potential challenge lies in determining what constitutes a "reasonable belief" of wrongdoing, which could lead to disputes. However, the overall impact is likely to be a more open and accountable system, where those who witness problems can report them without fear of career-ending consequences.