The FCA is frequently called the “Lincoln Law” because it was originally passed during the Lincoln administration, at the direct request of Abraham Lincoln. It was passed because there were concerns that the Union Army was being defrauded by companies who took federal dollars to provide food, equipment and, supplies.
The law was initially effective. However, it underwent changes in 1943 that reduced the rewards and made it nearly impossible to file if the government had any evidence of fraud (even if it had not acted on that evidence). After that, the law was rarely used until it was amended again in 1986.
The changes were fueled by a public outcry against what appeared to be institutional fraud among military contractors. Public disclosures in the mid-80s revealed that the government had spent hundreds of dollars for common hardware store items like hammers and toilet seats.
Amendments that were made in 1986 significantly increased penalties for fraud along with the share that the whistleblower could claim by revealing it. It also further incentivized lawyers to participate in these cases by guaranteeing the payment of their hourly fees by the defendant. Finally, the amendments lowered the standard of proof that was necessary to merely file, making cases easier to bring.
The law was further strengthened and clarified in 2009 and 2010 when additional fraudulent situations were covered by the law, and the government was granted additional tools to determine the legitimacy of cases.
The current version of the law is considered quite powerful. There have been few better times in history to proceed with a case involving fraud.