As climate change threatens the United States’ coastlines, the federal government has responded with a wave of spending to support what is being called the “blue economy.” 

Across nearly 100,000 shoreline miles, from New England to Florida, around the Great Lakes, and across the Gulf and West Coasts, revenue and jobs are generated by a variety of “blue” industries, among them marine transportation, offshore renewable energy, seafood, fishing, and coastal travel and tourism.

In 2018, according to government figures, the U.S. blue economy supported 2.3 million jobs and contributed $373 billion to the Gross Domestic Product. In 2019, the blue economy added $397 billion to the GDP and grew faster than the nation’s economy as a whole.

Some states, such as Rhode Island, appropriately nicknamed the Ocean State, are even more reliant on blue economy jobs – and threatened by climate change. It’s the country’s smallest state, yet second-most densely populated, making coastline space a premium. A 2020 University of Rhode Island report estimated the state’s share of the U.S. blue economy at $5 billion and 36,500 jobs.

With warming temperatures, rising sea levels, and pollution caused by climate change threatening communities around the United States, the $1.2 trillion Infrastructure Investment and Jobs Act (also known as the Bipartisan Infrastructure Law), allocated nearly $3 billion of funding over five years to the National Oceanic and Atmospheric Administration to fight global warming, in part, through investment in blue economy businesses.

But with any government spending program, no matter how well intentioned, comes the potential for fraud. This can happen not only if a person or business makes a false claim to the government to receive money or grants from the infrastructure law, but if they don’t pay prevailing wages for the work.

Here is an overview of the infrastructure law related to climate change and the blue economy, and what to do if you suspect fraud in these programs.

NOAA is focusing on three initiatives with the $2.96 billion it received from the law.

• Climate Ready Coasts is the biggest, $1.467 billion over five years for natural infrastructure projects that build coastal resilience, create jobs, store carbon, remove marine debris, and restore habitat. About $217 million in grants were awarded in 2022 for these projects.
• $904 million will be spent on Climate Data and Services to get critical information in the hands of decision-makers through flood mapping, ocean and coastal observation systems, research supercomputing, and wildfire infrastructure.
• And $592 million will support Fisheries and Protected Resources, including a Pacific Coastal Salmon Recovery Fund.

So what happens if this money isn’t being used as intended? The False Claims Act includes a way for someone with knowledge of a fraud on the government to report it and to secure recovery of the money to the government. By statute the whistleblower is entitled to between 15-30% of any successful recovery. 

If you are working one of the federal government’s infrastructure contracts and you believe you are not being properly compensated for your work, or your employer is not reporting wages to the government properly, you may have a claim against your employer. Additionally, if you know your employer is using funds awarded through these programs in ways that were not what the government intended reporting false wage information to the federal government, like reporting that it is paying workers prevailing wages when it isn’t, you may have grounds for a whistleblower action.

Consulting with an employment whistleblower attorney is important to ensure your rights are protected and to determine whether you have a basis for a lawsuit. If you are considering reporting any wrongdoing to the government, it’s critical to consult with a knowledgeable attorney to better understand your rights and the potential outcomes of becoming a whistleblower. 

In either situation, the attorneys of Keller Grover are here to help. With more than 30 years combined experience in both fraud and employment law, Keller Grover is uniquely positioned to help clients with both types of claims. The firm has helped its clients recover billions of dollars.  

Keller Grover is committed to helping whistleblowers report wrongdoing and helping workers get the pay they are owed. If you want to report wrongdoing or discuss a potential prevailing wage claim, contact us today for a free, confidential consultation.