Obama signs the Fraud Enforcement and Recovery Act of 2009

President Barack Obama signed the Fraud Enforcement and Recovery Act on May 20, 2009, expanding the False Claims Act to cover contractors and subcontractors receiving stimulus funds under ARRA and financial bailout funds under TARP. The law reversed a 2008 Supreme Court ruling in Allison Engine Co. v. United States that had narrowed FCA liability, restoring the government's ability to pursue fraud wherever federal dollars flowed. Congress also authorized $245 million in additional funding for the DOJ, Secret Service, and SEC to investigate financial crimes.