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119-hr-7721119th CongressWALLET

CRACKDOWN Act of 2026

Sponsored By: Representative Grothman, Glenn [R-WI-6]

In Committee

Summary

Creates a 5 percent improper payment cap for state Child Care and Development Block Grant payments and links repeated overpayments to potential funding loss. A state that exceeds 5 percent in a fiscal year would have to submit a corrective action plan to the Secretary for review and approval and provide reports showing compliance. If a state posts improper payment rates above 5 percent for two consecutive fiscal years it would be ineligible for subchapter funds unless it reduces the rate to 5 percent for the next year or makes significant progress on an approved plan.

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  • States: States with improper payment rates over 5 percent in a fiscal year would have to file a corrective action plan and regular reports to the Secretary. This adds a compliance hurdle tied to a clear numeric threshold.
  • Funding eligibility: States with rates above 5 percent for two consecutive fiscal years would lose eligibility for funds under this subchapter unless they cut the rate to 5 percent or show significant progress on an approved plan.
  • Federal oversight: The Secretary would review and approve corrective action plans and require reports to verify compliance.
  • Timing: The bill does not set a phase-in date or a sunset for these requirements.

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Bill Overview

Analyzed Economic Effects

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

New rules for state child care funds

If enacted, this bill would require your State to file a corrective action plan when its Child Care and Development Block Grant improper payment rate exceeds 5% for a fiscal year. The State would also have to send reports showing it is following the approved plan. If the rate stays above 5% for two years in a row, the State could become ineligible for CCDBG funds unless it shows to the Secretary that it will cut the rate to 5% or make significant progress on the plan. If your State lost funds, families could get less federal child care help.

Sponsors & CoSponsors

Sponsor

Grothman, Glenn [R-WI-6]

WI • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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