Wisconsin Bell v. US ex rel Heath (False Claims Act)

Send us a text

In Wisconsin Bell, Inc. v. United States ex rel. Heath, the Supreme Court unanimously affirms that E-Rate reimbursement requests qualify as “claims” under the False Claims Act (FCA). The case centers on whether federal subsidies distributed through the E-Rate program—funded by contributions from telecommunications carriers and administered by a private corporation—constitute government-provided money for FCA purposes. 

Writing for the Court, Justice Kagan holds that because the government transferred over $100 million from the U.S. Treasury into the E-Rate fund, it “provided” a portion of the money requested, satisfying the statutory definition under 31 U.S.C. §3729(b)(2)(A)(ii)(I). The ruling rejects Wisconsin Bell’s argument that the government was merely an intermediary, emphasizing that the government actively collected, managed, and disbursed funds, akin to its broader fiscal operations. 

The decision affirms the Seventh Circuit and allows the FCA suit to proceed. Justices Thomas and Kavanaugh each filed concurring opinions (both of whom signed onto one another's), and Justice Alito signed onto a portion of the Thomas concurrence.