YourVoice.Now Summary
Average Household ImpactTransparency & AccountabilityPermanently bans child care providers caught committing fraud and cuts off states whose improper payment rate stays above 5% for two years.
Average Household Impact
- State child care funding eligibility — Lost after two straight years above a 5% improper-payment rate
Transparency & Accountability
- Fraud investigation and debarment — Now mandatory for providers with a final fraud determination
- State program-integrity reporting — Internal controls, fraud recovery, and eligibility checks required
- Improper-payment reporting — Annual state reports must itemize fraudulent and improper payments
- State performance monitoring — Comprehensive federal review of each state every three years
- Corrective-action plans — Required once a state's improper-payment rate exceeds 5%
- GAO fraud study — Review of fraud measures across federal child care and nutrition programs
- Sanction-waiver authority — Secretary's power to waive state fraud sanctions removed
The details
Child care providers that commit fraud to get federal funding would be permanently banned from the program, and states that fail to control improper payments could lose their funding entirely. Known as the “Stop Child Care Scams Act,” the bill requires the government to investigate fraud and debar providers found to have submitted false information or misused money. States whose improper-payment rate stays above 5% for two consecutive years would become ineligible for funds unless they show real progress on an approved corrective action plan. It also adds annual fraud-and-improper-payment reporting, a comprehensive federal review of each state every three years, and a GAO study of fraud prevention across federal child care and child nutrition programs. The changes mainly affect state child care agencies and the providers serving low-income families who rely on the Child Care and Development Block Grant (the main federal child care subsidy).
Congressional Summary
No Funds for Repeat Child Care Violations Act of 2026This bill subjects states to additional sanctions for improperly using funds under the Child Care and Development Block Grant program. The program provides grants to states to support child care programs for low-income working families.Specifically, if the Office of the Administration for Children and Families (ACF) finds that a state has failed to comply substantially with the requirements of the program, the ACF must impose additional sanctions, which include disqualifying the state from receiving funds under the program.Under current law, the ACF is permitted, but not required, to take such actions for a state's noncompliance.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Reported to House
- Action Date
- 2026-04-06
- Date Added
- 2026-06-02
- Source
- Congress.gov →
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