# 119-hr-7721: CRACKDOWN Act of 2026

119-hr-7721, CRACKDOWN Act of 2026, is a 119th Congress bill sponsored by Rep. Grothman, Glenn [R-WI-6] (R-WI); status in_committee; PRIA reads it as touching household money (as of 2026-06-13).

- Canonical: https://policyrisk.com/legislation/119-hr-7721
- As of: 2026-06-13
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-7721
- Congress: 119
- Title: CRACKDOWN Act of 2026
- Status: in_committee
- Introduced: 2026-02-26
- Sponsor: Rep. Grothman, Glenn [R-WI-6] (R-WI)
- Cosponsors: 0
- Policy area: Families
- Touches household money: yes
- Last recorded action: 2026-06-13

## 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. - 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.

## Provisions PRIA read

- New rules for state child care funds: mixed, medium. 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…

## Related bills

- 119-hr-4669: FEMA Act of 2025
- 119-hr-137: TCJA Permanency Act
- 119-hr-4312: SCORE Act
- 119-hr-1229: United States-Israel Defense Partnership Act of 2025
- 119-hr-1897: ESA Amendments Act of 2025
- 119-hr-9298: Stopping Harmful and Outrageous Torts Act

## Sources
- [119-hr-7721 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/7721)

## Related
- [119-hr-4669: FEMA Act of 2025](https://policyrisk.com/legislation/119-hr-4669)
- [119-hr-137: TCJA Permanency Act](https://policyrisk.com/legislation/119-hr-137)
- [119-hr-4312: SCORE Act](https://policyrisk.com/legislation/119-hr-4312)
- [119-hr-1229: United States-Israel Defense Partnership Act of 2025](https://policyrisk.com/legislation/119-hr-1229)
- [119-hr-1897: ESA Amendments Act of 2025](https://policyrisk.com/legislation/119-hr-1897)
- [119-hr-9298: Stopping Harmful and Outrageous Torts Act](https://policyrisk.com/legislation/119-hr-9298)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-7721 (as of 2026-06-13).