Bill Summary
The "Stop Child Care Fraud Act of 2026" seeks to enhance the integrity and accountability of child care programs funded under the Child Care and Development Block Grant Act of 1990. The legislation mandates that states provide detailed information about their internal controls to prevent and address fraud within these programs. Specifically, states must outline their processes for investigating and recovering fraudulent payments, imposing sanctions on clients or providers involved in fraud, and verifying eligibility for assistance. Additionally, the act requires states to describe how they utilize data from various state and local agencies that oversee child care providers, ensuring a coordinated approach to safeguarding public funds and maintaining program integrity.
Possible Impacts
The "Stop Child Care Fraud Act of 2026," as outlined, could impact individuals and communities in several ways:
1. **Enhanced Accountability for Child Care Providers**: By requiring states to establish and disclose their internal controls and processes for maintaining program integrity, child care providers may face stricter oversight. This could lead to increased transparency and accountability in the child care sector, ensuring that funds are used appropriately and that services meet necessary standards. Families may feel more secure knowing that providers are being monitored and held accountable for fraudulent activities.
2. **Increased Scrutiny for Families Receiving Assistance**: The legislation mandates that states document and verify eligibility for assistance more rigorously. While this aims to reduce fraud, it may also create additional barriers for families seeking aid. For some families, this could result in increased stress and anxiety due to more stringent documentation requirements, which could disproportionately affect those who may struggle to comply with bureaucratic processes.
3. **Potential Sanctions for Noncompliance**: The act outlines processes for imposing sanctions on clients or providers involved in fraudulent activities. This provision could lead to severe consequences for individuals who inadvertently fail to meet eligibility requirements or for providers who may not fully understand compliance expectations. Families or providers facing sanctions could experience financial strain, reduced access to necessary child care services, or the loss of benefits, impacting their overall well-being and stability.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7725 Reported in House (RH)]
<DOC>
Union Calendar No. 511
119th CONGRESS
2d Session
H. R. 7725
[Report No. 119-591]
To amend the Child Care and Development Block Grant Act of 1990 to
require States disclose agency regulatory participation under such Act.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 26, 2026
Mr. Rulli introduced the following bill; which was referred to the
Committee on Education and Workforce
April 6, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on
February 26, 2026]
_______________________________________________________________________
A BILL
To amend the Child Care and Development Block Grant Act of 1990 to
require States disclose agency regulatory participation under such Act.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Child Care Fraud Act of 2026''.
SEC. 2. PROGRAM INTEGRITY AND ACCOUNTABILITY.
Section 658E(c)(2) of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858c(c)(2)) is amended by adding at the end the
following:
``(W) Program integrity and accountability.--The
plan shall include a description of--
``(i) the State's internal controls to
ensure program integrity and accountability;
``(ii) the processes in place--
``(I) to investigate and recover
fraudulent payments; and
``(II) to impose sanctions on
clients or providers in response to
fraud; and
``(iii) the procedures in place to document
and verify eligibility.
Such description shall include how the State utilizes
data within and across other State and local agencies
that have oversight of child care providers that serve
children who receive assistance under this
subchapter.''.
Union Calendar No. 511
119th CONGRESS
2d Session
H. R. 7725
[Report No. 119-591]
_______________________________________________________________________
A BILL
To amend the Child Care and Development Block Grant Act of 1990 to
require States disclose agency regulatory participation under such Act.
_______________________________________________________________________
April 6, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed