Proposed Rule2025-23963
Implementation of the Administrative False Claims Act
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Published
December 30, 2025
Issuing agencies
National Aeronautics and Space Administration
Abstract
The National Aeronautics and Space Administration is proposing to amend its regulations in order to fully implement the Administrative False Claims Act (AFCA), as amended by the Fiscal Year 2025 National Defense Authorization Act. This updated rule establishes clear and comprehensive administrative procedures for investigating, evaluating, and imposing civil penalties and monetary assessments on individuals or entities that knowingly make, submit, or present false claims, representations, or misleading statements to NASA. The AFCA offers a streamlined, agency-level enforcement remedy that enables NASA to more effectively address smaller, lower-dollar fraud cases, safeguard critical Federal funds, and strongly deter fraudulent conduct.
Full Text
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<title>Federal Register, Volume 90 Issue 246 (Tuesday, December 30, 2025)</title>
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[Federal Register Volume 90, Number 246 (Tuesday, December 30, 2025)]
[Proposed Rules]
[Pages 61109-61111]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23963]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
14 CFR Part 1264
RIN 2700-AE79
[NASA Document Number: NASA-25-034; NASA Docket Number: NASA-2025-0069]
Implementation of the Administrative False Claims Act
AGENCY: National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: The National Aeronautics and Space Administration is proposing
to amend its regulations in order to fully implement the Administrative
False Claims Act (AFCA), as amended by the Fiscal Year 2025 National
Defense Authorization Act. This updated rule establishes clear and
comprehensive administrative procedures for investigating, evaluating,
and imposing civil penalties and monetary assessments on individuals or
entities that knowingly make, submit, or present false claims,
representations, or misleading statements to NASA. The AFCA offers a
streamlined, agency-level enforcement remedy that enables NASA to more
effectively address smaller, lower-dollar fraud cases, safeguard
critical Federal funds, and strongly deter fraudulent conduct.
DATES: NASA must receive comments on or before February 13, 2026.
ADDRESSES: You may submit comments, identified by RIN 2700-AE79 through
the Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Follow the
online instructions for submitting comments. All comments received will
be posted without change to the Federal eRulemaking Portal; including
any personal information provided.
FOR FURTHER INFORMATION CONTACT: Robert Vogt, 202-763-3659,
<a href="/cdn-cgi/l/email-protection#bdcfd2dfd8cfc993d793cbd2dac9fdd3dccedc93dad2cb"><span class="__cf_email__" data-cfemail="493b262b2c3b3d6723673f262e3d0927283a28672e263f">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
On December 23, 2024, the National Defense Authorization Act (NDAA)
for Fiscal Year 2025 (FY 2025 NDAA) (Pub. L. 118-159) was signed into
law. Under section 5203, the FY 2025 NDAA revitalizes an existing but
underutilized fraud enforcement mechanism: the Administrative False
Claims Act of 2023 (AFCA). This Act, previously known as the Program
Fraud Civil Remedies Act of 1986, offers a streamlined administrative
remedy for addressing false claims and statements that the Department
of Justice (DOJ) opts not to prosecute. The new statute requires
[[Page 61110]]
amendment to the NASA's regulations at 14 CFR 1264 within 180 days of
enactment. The AFCA complements the more widely known and widely used
civil False Claims Act by providing an administrative process by which
Federal executive branch agencies can address relatively small dollar
value false claims that might not warrant the attention of the DOJ. The
liability provisions of the AFCA remain closely modeled on those in the
False Claims Act. The principal differences between the False Claims
Act and the AFCA are that the AFCA does not include a qui tam
enforcement mechanism, covers false written statements even in the
absence of a claim, and provides for administrative rather than
judicial resolution.
II. Regulatory Analysis
Executive Order (E.O.) 12866--Regulatory Planning and Review, E.O.
13563--Improving Regulation and Regulatory Review, and E.O. 14192--
Unleashing Prosperity Through Deregulation
E.O.s 12866 and 13563 direct agencies to assess all costs and
benefits of available regulatory alternatives and, if regulation is
necessary, to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health and safety
effects, distributive impacts, and equity). E.O. 13563 emphasizes the
importance of quantifying both costs and benefits of reducing costs, of
harmonizing rules, and of promoting flexibility. This rule is a
significant regulatory action under E.O. 12866. This rule is expected
to be an E.O. 14192 deregulatory action.
E.O. 13132--Federalism
E.O. 13132 requires agencies to ensure meaningful and timely input
by state and local officials in the development of regulatory policies
that may have a substantial, direct effect on the states, on the
relationship between the National Government and the states, or on the
distribution of power and responsibilities among the various levels of
government. This action has been analyzed in accordance with the
principles and criteria contained in the order, and NASA has determined
that this action will not have a substantial direct effect or
federalism implications on the states and would not preempt any state
law or regulation or affect the states' ability to discharge
traditional state governmental functions. Therefore, consultation with
the states is not necessary.
E.O. 13175--Consultation and Coordination With Indian Tribal
Governments
This final rule has been analyzed in accordance with the principles
and criteria contained in E.O. 13175. NASA has determined that the
removal of Subpart 1204.3 does not significantly or uniquely affect the
communities of the Indian tribal governments or impose substantial
direct compliance costs on them; the funding and consultation
requirements of E.O. 13175 do not apply.
Regulatory Flexibility Act
Because no notice of proposed rulemaking is required, the
Regulatory Flexibility Act does not require an initial or final
regulatory flexibility analysis.\1\
Paperwork Reduction Act
No collections of information pursuant to the Paperwork Reduction
Act are contained in the final rule.
Unfunded Mandates Reform Act of 1995
This rule will not impose a Federal mandate that may result in the
expenditure by state, local, and tribal governments, in the aggregate,
or by the private sector, of $100 million or more in any one year.
List of Subjects 14 CFR Part 1264
Administrative practice and procedure; Claims; Fraud.
For the reasons set forth in the preamble, NASA proposes to amend
14 CFR part 1264 as follows:
PART 1264--IMPLEMENTATION OF THE ADMINISTRATIVE FALSE CLAIMS ACT
0
1. The authority citation for part 1264 continues to read as follows:
Authority: 31 U.S.C. 3809, 51 U.S.C. 20113(a).
0
2. In Sec. 1264.100, revise paragraphs (a) to read as follows:
Sec. 1264.100 Basis and purpose.
(a) Basis. This part implements the Administrative False Claims
Act, Public Law 99-509, sections 6101-6104, 100 Stat. 1874 (October
1986), amended Public Law 118-159, December 23, 2024, 138 Stat, 2440,
to be codified at 31 U.S.C. 3801-3812. 31 U.S.C. 3809 of the statute
requires each authority head to promulgate regulations necessary to
implement the provisions of the statute.
* * * * *
0
3. In Sec. 1264.101, amend paragraphs (e)(2)(iii), (g), (l), (m), (p),
(r), to read as follows:
Sec. 1264.101 Definitions.
* * * * *
(e) * * *
(3) Made to the authority which has the effect of concealing or
improperly avoiding or decreasing an obligation to pay, transmit or
account for property, services, or money to the authority.
* * * * *
(g) Consent hearing means that the authority and the defendant
consent, as provided in Sec. 1264.106(c), that the presiding officer
be the Civilian Board of Contract Appeals (CBCA). The Chairperson may
designate another administrative judge of the CBCA as presiding officer
in a consent hearing.
* * * * *
(l) Investigating official means the NASA Inspector General, or
designee who is serving in a position for which the rate of basic pay,
is not less than the minimum rate of basic pay for the grade GS-16
(under the General Schedule).
(m) Knows or has reason to know, for purposes of establishing
liability, means that a person:
(1) Has actual knowledge that the claim or statement is false,
fictitious, or fraudulent;
(2) Acts in deliberate ignorance of the truth or falsity of the
claim or statement; or
(3) Acts in reckless disregard of the truth or falsity of the claim
or statement and no proof of specific intent to defraud is required.
* * * * *
(p) Presiding officer, except as provided for pursuant to consent
trial notice, means
(1) In the case of an authority to which the provisions of
subchapter II of chapter 5 of title 5 apply, an ALJ appointed in the
authority pursuant to section 3105 of such title or detailed to the
authority pursuant to section 3344 of such title.
(2) If the authority is not subject to the provisions of Subchapter
II of Chapter 5, Title 5, U.S.C. an officer or employee of the
Authority who--
(i) Is appointed by the Authority head to conduct hearings under
this part;
(ii) Is assigned to cases in rotation so far as practicable;
(iii) May not perform duties inconsistent with the duties and
responsibilities of a presiding officer.
(iv) Is entitled to pay prescribed by the Office of Personnel
Management independently of ratings and recommendations made by the
authority and in accordance with Chapter 51 Title 5 and Subchapter III
of Chapter 53 of Title 5;
(v) Is not subject to performance appraisal pursuant to Chapter 43
of Title 5; and
[[Page 61111]]
(vi) May be removed, suspended, furloughed, or reduced in grade or
pay only for good cause established and determined by the Merit Systems
Protection Board on the record after opportunity for hearing by such
Board.
(3) A member of the board of contract appeals pursuant to section
7105 of title 41, if the Authority does not employ an available
presiding officer under subparagraph (1) of this section.
* * * * *
(r) Reviewing official means the NASA Associate Administrator for
Mission Support or designee.
* * * * *
0
4. In Sec. 1264.102, amend paragraph (a)(1) by adding a new
subparagraph (v) to read as follows:
* * * * *
(v) Is made to an authority which has the effect of concealing or
improperly avoiding or decreasing an obligation to pay or transmit
property, services, or money to the authority,
(2) Shall be subject, in addition to any other remedy that may be
prescribed by law, to a civil penalty of not more than $14,308 for each
such claim.
* * * * *
0
5. In Sec. 1264.103, revise paragraph (b) to read as follows:
* * * * *
(b) If the investigating official concludes that an action under
the Administrative False Claims Act may be warranted, the investigating
official shall submit a report containing the findings and conclusions
of such investigation to the reviewing official.
* * * * *
0
6. In Sec. 1264.104, amend paragraph (a) and subparagraph (b)(4) to
read as follows:
(a) If, based on the report of the investigating official under
Sec. 1264.103(b), the reviewing official determines that there is
adequate evidence to believe that a person is liable under the
Administrative False Claims Act, and there is a reasonable prospect of
collecting, from a person with respect to whom the reviewing official
is referring allegations of liability in such notice, the amount for
which such person may be liable, the reviewing official shall transmit
to the Attorney General a written notice of the reviewing official's
intention to issue a complaint under Sec. 1264.106.
(b) * * *
* * * * *
(4) An estimate of the amount of money or the value of property,
services, or other benefits requested or demanded in violation of the
Administrative False Claims.
* * * * *
0
7. In Sec. 1264.105, revise subparagraph (a)(2) to read as follows:
(a) * * *
* * * * *
(2) In the case of allegations of liability under Sec. 1264.102(a)
with respect to a claim, the reviewing official determines that, with
respect to such claim or a group of related claims submitted at the
same time such claim is submitted (as defined in paragraphs (b) of this
section), the amount of money or the value of property or services
demanded or requested in violation of Sec. 1264.102(a) does not exceed
$1,000,000.
0
8. In Sec. 1264.106, revise subparagraph (c)(1) to read as follows:
* * * * *
(c) * * *
(1) Notice to Consent to the chairperson of the Armed Services
Board of Contract Appeals (ASBCA), or Designee, as presiding officer;
* * * * *
0
9. In Sec. 1264.118, revise subparagraph (c)(7) to read as follows:
* * * * *
(c) * * *
(7) Scheduling dates for the exchange of witness lists, statements,
and of proposed exhibits;
* * * * *
0
10. In Sec. 1264.120, revise subparagraph (d)(1) and add a new
subparagraph (d)(6) to read as follows:
* * * * *
(d) * * *
(1) A party seeking discovery must file a motion with the presiding
officer. Such a motion shall be accompanied by a copy of the discovery
request or, in the cast of depositions, a summary of the scope of the
proposed deposition.
* * * * *
(6) The presiding officer shall regulate the timing of discovery.
0
11. In Sec. 1264.123, revise paragraph (b)(9) to read as follows:
* * * * *
(b) * * *
(9) That the parties simultaneously file specified documents or
information as directed by the presiding officer.
* * * * *
0
12. In Sec. 1264.135, revise the paragraph to read as follows: The
presiding officer may decide on any post-hearing motions and may
require the parties to file post-hearing briefs. In any event, upon
approval of the presiding officer, any party may file a post-hearing
brief. The presiding officer shall fix the time for filing such briefs,
not to exceed 60 days from the date the parties receive the transcript
of the hearing or, if applicable, the stipulated record. Such briefs
may be accompanied by proposed findings of fact and conclusions of law.
The presiding officer may permit the parties to file reply briefs, and
may grant an extension of the 60-day time period or other time for good
cause shown.
* * * * *
0
13. In Sec. 1264.144, revise the paragraph to read as follows:
(a) Any amount collected under this chapter shall be credited first
to reimburse the authority or other Federal entity that expended costs
in support of the investigation or prosecution of the action, including
any court or hearing costs; and amounts reimbursed under clause shall
be deposited in:
(i) the appropriations account of the authority or other Federal
entity from which the costs described in subparagraph (a) were
obligated;
(ii) a similar appropriations account of the authority or other
Federal entity; or
(iii) if the authority or other Federal entity expended
nonappropriated funds, another appropriate account; and remain
available until expended.
(b) Any amount remaining after reimbursements described in above
shall be deposited as miscellaneous receipts in the Treasury of the
United States.
* * * * *
0
14. Revise Sec. 1264.146 to read as follows:
(a) A notice to the person alleged to be liable with respect to a
claim or statement shall be mailed or delivered in accordance with 14
CFR 1264.107 not later than the later of--
(1) 6 years after the date on which the violation is committed; or
(2) 3 years after the date on which facts material to the action
are known or reasonably should have been known by the authority head,
but in no event more than 10 years after the date on which the
violation is committed.
(b) Such notice shall specify the allegations of liability against
such person and shall state the right of such person to request a
hearing with respect to such allegations.
0
15. Remove Appendix A to Part 1264.
Nanette Smith,
Team Lead, NASA Directives and Regulations.
[FR Doc. 2025-23963 Filed 12-29-25; 8:45 am]
BILLING CODE 7510-13-P
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