Stop Child Care Funding Fraud

Summary#

This bill changes the Child Care and Development Block Grant Act of 1990. It requires States to report their rate of improper payments for subsidized child care by June 30 of each program period. If a State's improper payment rate is over 6 percent, the State must send a corrective action plan within 60 days. The plan must include verified child attendance data in an aggregated form that has no personally identifiable information. The Secretary of Health and Human Services must cut a State's child care grant payments until the State fixes the problem: a 5% cut if the rate is greater than 6% but under 8%, a 10% cut if the rate is at least 8% but under 10%, and a 15% cut if the rate is 10% or higher. The Secretary also must report to Congress with a disaggregated, State-by-State breakdown showing each State's improper payment rate and the actions each State took. The bill takes effect one year after enactment.

What it means for you#

  • States: must measure and report improper payment rates, create corrective plans if rates exceed 6%, and may face reductions in grant funds until they meet requirements.
  • Parents and providers: No specific changes to individual eligibility or provider rules are specified in the bill text. Reporting and fund changes would be handled at the State level.
  • Federal oversight: the Secretary will publish State-by-State improper payment rates and monitor corrective action plans.

Expenses#

  • The bill requires the Secretary to reduce amounts of grant funds States would otherwise receive by 5%, 10%, or 15% depending on the State's improper payment rate until the State is certified as having implemented a corrective plan.
  • No publicly available information on broader federal costs, savings, or fiscal estimates is provided in the bill text or metadata.

Proponents' View#

The bill's stated purpose is to provide transparency and accountability in the administration of Federal child care funds. It requires State reporting, corrective plans, and financial incentives to reduce improper payments.

Opponents' View#

No publicly available information.