HR7723119th CongressWALLET

Safeguarding Taxpayer Dollars in Child Care Act of 2026

Sponsored By: Representative Foxx

In Committee

Summary

This bill would create mandatory fraud investigations and permanent debarment rules for child care providers that misuse federal child care funds. It would require the Secretary to investigate suspected fraud under the Child Care and Development Block Grant program and set a clear, enumerated standard for what counts as a "final determination of fraud."

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  • Providers: The bill would let the Secretary investigate and permanently debar any CCDBG recipient with a final fraud determination. Examples listed include knowingly submitting false documents, misrepresenting ownership or eligibility, operating without required licensing, and improper expenditure of funds.
  • Families and taxpayers: It aims to protect children and federal funds by removing providers found to commit fraud from federally funded child care programs.
  • Cross-program enforcement: The bill would link CCDBG debarments to the Child and Adult Care Food Program, mirroring the same fraud definitions so entities terminated for fraud can be barred from both programs.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Permanent bans for child care providers

If enacted, the bill would require the Secretary to investigate alleged fraud in child care programs that receive CCDBG funds. A "final determination of fraud" would mean an administrative or court finding with all appeal rights exhausted or waived. Providers with such a final finding would be permanently barred from receiving CCDBG funds. The bill lists examples of fraud, including knowingly submitting false statements or documents; misrepresenting ownership, enrollment, attendance, services, or eligibility; operating without required State licensing (absent an exception); knowingly making improper expenditures; or other Federal or State fraud. The bill would also require permanent debarment in the Child and Adult Care Food Program for institutions or day care homes terminated for fraud and would link debarments so a ban in one program bars participation in the other. These rules would take effect upon enactment.

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Sponsors & CoSponsors

Sponsor

Foxx

NC • R

Cosponsors

  • Rep. Letlow, Julia [R-LA-5]

    LA • R

    Sponsored 3/4/2026

Roll Call Votes

No roll call votes available for this bill.

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