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October 27, 1986legislationgovernment contractingfraud enforcementwhistleblower lawdefense procurementaccountabilitygovernment contractingwhistleblower protection

Reagan signs the False Claims Act Amendments of 1986

President Ronald Reagan signed the False Claims Act Amendments of 1986 on October 27, 1986, substantially strengthening the law after a wave of Pentagon procurement scandals exposed contractors charging $435 for a single hammer, $600 for a toilet seat cover assembly, and $7,600 for a coffee maker on military aircraft. The amendments raised the qui tam relator's share to 15–30 percent of recovered funds, imposed treble damages on fraud, and added explicit whistleblower retaliation protections. Within a decade, DOJ False Claims Act annual recoveries increased tenfold from pre-amendment levels.