H.R. 7824 — Federal Funds Whistleblower Protection Extension Act

This section establishes whistleblower protections for individuals administering or receiving state-administered federal funds by adding a new chapter 76 to title 5, United States Code. The chapter (1) defines covered individuals (i.e., employees, contractors, subgrantees, or agents of state/local governments or non-federal entities handling federal funds), covered officials (i.e., state/local officers, employees, or agents overseeing such funds), and protected disclosures (i.e., lawful disclosures of federal funds misuse, waste, fraud, or abuse; federal law violations in federally funded programs; or gross mismanagement); (2) prohibits covered officials from taking or failing to take personnel actions (e.g., termination, demotion, pay reduction, harassment, or other materially adverse actions) against covered individuals for protected disclosures; (3) imposes criminal penalties on covered officials for retaliation, including fines up to $50,000 (negligent), $100,000 plus up to 1 year imprisonment (knowing), or $250,000 plus up to 5 years imprisonment (intentional for personal gain or concealment); (4) authorizes federal agencies or Inspectors General to refer credible retaliation cases to the Attorney General for prosecution; and (5) conditions state and local receipt of federal funds on certification of compliance, with noncompliance triggering corrective actions, fund suspension, or program termination.

This section adds a new chapter 76, titled "Protection of Whistleblowers in Federally Funded State Programs" and beginning at section 7601, to the table of chapters for part III of title 5, United States Code, following chapter 75.