Wisconsin Bell cv. United States, ex rel. Heath

The False Claims Act (FCA) applies to E-Rate reimbursement requests because the government “provided” a portion of the money disbursed from the E-Rate program’s fund. Justice Elena Kagan authored the unanimous opinion of the Court.  A request for money qualifies as an FCA “claim” if the government has provided “any portion” of the funds sought. The government contributed over $100 million to the E-Rate program in the relevant years through two sources: delinquent contributions from telecom carriers collected by the Federal Communications Commission (FCC) and Treasury Department and settlement payments the Justice Department secured in fraud enforcement actions. These sums were first received into government-controlled Treasury accounts before being transferred to the E-Rate fund for disbursement. Because even a fraction of the funds at issue flowed through the government’s hands, the statute’s plain text is satisfied: the government “provided” a portion of the money paid to E-Rate participants.  Wisconsin Bell’s counterargument that the government did not “provide” these funds because they originated from private carriers fails. The statutory definition makes clear that the government’s title to the money is irrelevant. Even acting as an intermediary, the government still "provides" money when it receives and distributes funds in furtherance of its programs, as seen in tax collection and other funding mechanisms. Since the Court finds that at least some federal money entered and exited the public treasury before funding E-Rate reimbursements, the FCA applies, and Heath’s fraud claims may proceed. Justices Clarence Thomas and Brett Kavanaugh each authored a concurring opinion and joined the other’s, and Justice Samuel Alito joined Justice Thomas’s concurrence in part.