AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 

WHISTLEBLOWER PROTECTION 

Section 1553 of the American Recovery and Reinvestment Act of 2009 (the Act), aka the McCaskill 

Amendment, extends “whistleblower protection” to employees who reasonably believe they are being 

retaliated against for reporting misuse of funds received by their non-federal employer as part of the 

stimulus package. Specifically, an employee of any non-federal employer, such as a private company or 

a state or local employing agency, who reports waste, fraud or abuse as described in the act, may not be 

discharged, demoted or “otherwise discriminated against” because of his or her disclosure. This Act 

provides protection from retaliation only to non-federal employees who report waste, fraud or abuse 

connected to the use of stimulus funds. Protection for federal employees who disclose waste, fraud, 

or abuse - whether or not it regards the use of stimulus funds – is provided in accordance with Title 5 

USC § 2302(b)(8) and § 2302(b)(9). 

KEY POINTS

The Act prohibits retaliation against a non-federal employee who discloses information that the employee 

reasonably believes constitutes evidence of: 

o Gross mismanagement of an agency contract or grant relating to stimulus funds; 

o Gross waste of stimulus funds; 

o Substantial and specific danger to public health or safety related to implementation of stimulus funds; 

o Abuse of authority related to implementation or use of stimulus funds; or 

o Violation of law, rule, or regulation related to an agency contract or grant relating to stimulus funds. 

The allegation of waste, fraud, or abuse stemming from the use of stimulus funds that resulted in the 

alleged retaliation must have been reported to an Office of Inspector General (OIG), the Recovery 

Accountability and Transparency Board, the Comptroller General, a member of Congress, a State or 

Federal regulatory or law enforcement agency, a court or grand jury, a Federal agency head or his/her 

representatives, or a person with supervisory authority over the employee (or another employee of the 

employer who has the authority to investigate, discover, or terminate misconduct). Such disclosures may

be made during the course of an employee’s duties. 

Allegations of reprisal for reporting waste, fraud or abuse stemming from the use of stimulus funds may 

be reported to the “appropriate” Inspector General. (If multiple federal agencies are involved, please 

consult your Office of General Counsel (OGC) as to which IG office should handle the matter). 

Within 180 Days of Receipt of a Whistleblower Complaint the OIG Must 

I. Investigate the complaint and issue a 

report of the findings to the 

complainant, the complainant’s 

employer, the head of the 

appropriate federal agency, and the 

Recovery Accountability and 

Transparency Board; 

II. Determine that the complaint is a) 

frivolous (and therefore does not 

merit investigation); b) does not 

relate to stimulus funds; or 3) that 

another federal or state judicial or 

administrative proceeding was 

invoked to resolve the complaint; or

III. Exercise its discretion not to conduct 

or continue an investigation. 

However, if exercising this discretion, 

a written explanation must be 

provided to the complainant and the 

employer. (Note, the 180 day 

limitation does not apply to this 

discretion, but presumably the 

decision would be made sooner) 
If the OIG is unable to complete the investigation within 180 days of receiving a complaint:

• The Inspector General and the complainant may agree to an extension; or 

• The Inspector General may, without agreement from the complainant, extend the investigation up to 

an additional 180 days, but must provide written explanation to the complainant and the 

complainant’s employer. 

Federal agency response is required -- within 30 days of receipt of an OIG investigative report:

• The head of the federal agency must either 1) issue an order denying relief; or 2) order the employer 

to take affirmative steps to remedy the reprisal. If an employer fails to comply with an order issued 

by the head of the agency, the agency must file suit in federal court to enforce the relief order. If the 

head of the agency denies relief or fails to take action, or if the IG office decides not to investigate the 

allegation, the complainant may file suit against the employer. 

*The complainant has the right to access the OIG investigation file (subject to the Privacy Act)

The OIG may exclude information that is protected by attorney-client or other codified government 

privilege, and information where disclosure will impede a continuing investigation, disclose law 

enforcement techniques and procedures, or disclose the identity of a confidential source. 

PROHIBITED PERSONNEL 

PRACTICES 5 U.S.C. §2302 

(b)(8) and/or (b)(9) 

AMERICAN RECOVERY 

AND REINVESTMENT ACT OF 2009 

§1553 

WHO IS COVERED: 

Federal employees, former 

employees or applicants for 

federal employment. 

Non-federal employees of employers receiving 

stimulus funds. (Does not cover federal employees).

CATEGORIES OF 

DISCLOSURES: 

A violation of law, rule, or 

regulation; gross 

mismanagement; gross waste of 

funds; an abuse of authority; or a 

substantial and specific danger 

to public health or safety. 

Where use or implementation of stimulus funds: 

A violation of law, rule, or regulation (including the 

competition for or negotiation of a contract) or grant, 

awarded or issued; gross mismanagement; gross waste; 

an abuse of authority; or a substantial and specific 

danger to public health or safety. 

MUST REPORT TO: 

Any person 

(other than wrongdoer) 

• Recovery 

Accountability and 

Transparency Board 

• Inspector General 

• Comptroller General 

• Member of Congress 

• State or Federal 

regulatory or law 

enforcement agency 

• Court or grand jury 

• Head of a Federal 

agency or his/her 

representatives 

• Person with supervisory 

authority over the 

employee (or such 

other person working 

for the employer who 

has the authority to 

investigate, discover, or 

terminate misconduct). 

COMPLAINANT MUST HAVE: A reasonable belief that 

wrongdoing occurred. A reasonable belief that wrongdoing occurred. 

*For more information please visit: 

www.oig.doc.gov