Expanding Whistleblower Protections for Contractors Act of 2025

The bill updates existing whistleblower laws that apply to federal contractors and grantees. It replaces the narrower term “employee” with a new, wider category called “protected individual.” This category includes contractors, subcontractors, grantees, subgrantees, their current and certain former employees, and people doing personal services work under contract for the federal government, the Department of Defense (DoD), or NASA. It also makes clear that this includes state, tribal, territorial, and local governments and certain intelligence community elements working under these contracts or grants. The bill states that a protected individual cannot be fired, demoted, or otherwise discriminated against for two main things: refusing to obey an order that would require violating a law, rule, or regulation related to a contract or grant, and disclosing certain types of information to approved officials or bodies. For DoD and NASA, this includes evidence of gross mismanagement or gross waste of contract or grant funds, abuse of authority, legal violations related to contracts or grants, and substantial and specific dangers to public health or safety. For non‑defense agencies, it includes similar problems with any federal contract or grant and substantial and specific dangers to public health or safety. The bill also addresses the role of executive branch officials. It says that executive officials do not have the authority to ask a contractor, subcontractor, grantee, or subgrantee to retaliate against a protected person in ways that the law forbids. It directs investigators, when handling whistleblower complaints, to be able to propose disciplinary action against any executive branch official who requested such retaliation. Finally, the bill clarifies that the rights, forums, and remedies given in these whistleblower sections cannot be waived. This means people cannot be made to sign away these protections in contracts, workplace policies, forms, or conditions of employment, including through predispute arbitration agreements. The bill also cleans up and renumbers some subsections of the existing statutes to fit these changes.

This bill could affect a wide range of people who do work funded by the federal government, including private company staff, nonprofit workers, and employees of state, local, territorial, and tribal governments carrying out federal contracts or grants. It may also affect individuals doing personal services work, such as certain consultants or health professionals, when they are hired through specific contracts. By redefining them as “protected individuals,” the bill sets clearer rules about who is covered when they report serious problems. The changes aim to shape how problems with federal contract and grant spending are brought to light. By protecting people who refuse illegal orders or report issues like gross waste, mismanagement, abuse of authority, or specific dangers to health and safety, the bill could influence how willing workers are to raise concerns. The bill also addresses internal government behavior by making it clear that executive officials cannot order retaliation and may face proposed discipline if they do, though the exact impact would depend on how the law is enforced once in place. The rule that whistleblower rights and remedies cannot be waived in agreements or arbitration clauses may change how employers and contractors structure their contracts and dispute processes. It could increase the likelihood that whistleblower disputes are handled through the channels specified in these statutes rather than through private agreements.

• Broadens coverage from “employees” to “protected individuals,” including contractors, subcontractors, grantees, subgrantees, certain former employees, and personal services workers tied to federal, DoD, or NASA contracts and grants.
• Explicitly includes state, local, tribal, territorial governments, and certain intelligence community elements when they operate as contractors, grantees, or related entities.
• Protects individuals from reprisal for refusing orders that would require violating laws, rules, or regulations related to contracts, subcontracts, grants, or subgrants.
• Protects disclosures of gross mismanagement, gross waste of funds, abuse of authority, legal violations tied to contracts or grants, and (for both defense and non‑defense) substantial and specific dangers to public health or safety.
• Confirms that executive branch officials lack authority to request that contractors or grantees retaliate in ways the law forbids.
• Requires that investigators of complaints be able to propose disciplinary action against executive branch officials who request prohibited reprisals.
• States that the rights, forums, and remedies under these whistleblower sections cannot be waived by any agreement, policy, form, or employment condition, including predispute arbitration agreements.
• Amends both title 10 (for DoD and NASA contracts/grants) and title 41 (for non‑defense federal contracts/grants) of the U.S. Code to align whistleblower protections across agencies.

• The bill’s definition of “protected individual” reaches beyond private company employees to include governments at multiple levels and certain intelligence community elements working under contracts or grants.
• Personal services contractors and similar workers are explicitly covered, even though they may not be traditional employees of a contractor or agency.
• Certain former employees remain protected for actions taken before their termination, which could bring post‑employment disputes under these whistleblower rules.
• The non‑waiver language could affect existing contracts that rely on predispute arbitration or other waiver provisions for employment‑related claims.