The U.S. Securities and Exchange Commission’s (SEC) whistleblower program has experienced a significant decline in award payouts, reaching a six-year low in fiscal year 2025. This downturn suggests a shift toward more rigorous scrutiny and stricter standards for whistleblower claims.
In FY 2025, the SEC awarded approximately $59.7 million to whistleblowers, a stark contrast to the $255 million and $600 million awarded in FY 2024 and FY 2023, respectively. This marks the lowest level of awards since 2017. The average award in 2025 was around $2 million, with 122 denials and six orders omitting award amounts. ([whistleblowersblog.org](https://whistleblowersblog.org/corporate-whistleblowers/sec-whistleblowers/sec-whistleblower-program-sees-dramatic-drop-in-2025-award-payouts/?utm_source=openai))
Between April 21 and July 15, 2025, the SEC denied whistleblower awards in 31 consecutive orders, covering at least 55 claimants. This three-month period represents the longest stretch of blanket denials in the program’s history since its establishment under the Dodd-Frank Act in 2010. ([mondaq.com](https://www.mondaq.com/unitedstates/whistleblowing/1656146/sec-whistleblower-awards-slow-amid-record-denials-and-heightened-scrutiny?utm_source=openai))
Legal experts interpret these developments as indicative of the SEC’s heightened scrutiny and more exacting approach to whistleblower claims. Braeden Anderson, a partner at Gesmer Updegrove, advised clients that whistleblowers “should expect a more adversarial process—and prepare accordingly.” ([mondaq.com](https://www.mondaq.com/unitedstates/whistleblowing/1656146/sec-whistleblower-awards-slow-amid-record-denials-and-heightened-scrutiny?utm_source=openai))
In August 2024, the U.S. Court of Appeals for the D.C. Circuit upheld the SEC’s denial of a whistleblower award to an unnamed corporate attorney. The court determined that the attorney failed to meet the SEC’s requirements for whistleblower information to be “original” and not derived from legal representation of a client. ([reuters.com](https://www.reuters.com/legal/government/lawyer-who-tipped-sec-cant-claim-whistleblower-award-us-appeals-court-rules-2024-08-16/?utm_source=openai))
Despite the overall decline, the SEC has issued substantial awards in certain cases. In May 2023, the Commission announced its largest-ever whistleblower award of nearly $279 million to an individual whose information and assistance led to successful enforcement actions. ([sec.gov](https://www.sec.gov/newsroom/press-releases/2023-89?utm_source=openai))
These trends suggest that while the SEC continues to value whistleblower contributions, it is applying more stringent criteria to award eligibility. Potential whistleblowers and their legal counsel should be prepared for a more rigorous evaluation process and ensure that their submissions meet the SEC’s heightened standards.