H.R. 5578 — Expanding Whistleblower Protections for Contractors Act of 2025

This section revises whistleblower protections under the Defense Contractor Whistleblower Protection Act of 2013 (10 USC 4701) for contractors, subcontractors, grantees, subgrantees, and personal services contractors of the Department of Defense (DoD) and National Aeronautics and Space Administration (NASA)—now termed "protected individuals," a newly defined term that explicitly includes such entities (including state, local, tribal, territorial governments, and DoD intelligence community elements), their current and former employees, and personal services contractors. (1) Expands protected activities to include refusing to obey an order that would violate a law, rule, or regulation related to a DoD or NASA contract, subcontract, grant, or subgrant, and broadens covered disclosures to explicitly encompass subcontracts and subgrants; (2) replaces the prior exception allowing certain reprisals at the request of a DoD or NASA official with a prohibition on any executive branch official requesting reprisal; (3) directs Inspectors General to propose disciplinary action against executive branch officials who request reprisals; (4) prohibits waiver of these rights and remedies by any agreement, including predispute arbitration agreements; and (5) strikes one subsection and makes conforming terminology changes throughout. (Thus, the provision strengthens anti-retaliation safeguards, clarifies covered parties and activities, and limits executive interference for DoD and NASA contractors who disclose waste, fraud, abuse, or public safety risks.)

This section enhances whistleblower protections against reprisal for federal contractors, subcontractors, grantees, subgrantees, and personal services contractors (41 U.S.C. 4712)—which prohibit discharging, demoting, or discriminating against such employees for disclosing evidence of gross mismanagement, waste of funds, abuse of authority, public health or safety dangers, or legal violations related to federal awards—by (1) expanding covered activities to include a protected individual's refusal to obey an order requiring violation of a law, rule, or regulation related to a federal contract, subcontract, grant, or subgrant; (2) defining "protected individual" to encompass contractors, grantees, subgrantees, and personal services providers (including state, local, tribal, territorial governments, and intelligence community elements), their current and former employees, and related personal services personnel; (3) clarifying that executive branch officials lack authority to request reprisals; (4) authorizing Inspectors General to propose disciplinary action against executive branch officials who request reprisals; (5) specifying that statutory rights, forums, and remedies are not waivable by any agreement, including predispute arbitration agreements; and (6) striking subsection (f) and making conforming terminology changes throughout.