119-hr-7726119th CongressWALLET

Stop Child Care Scams Act of 2026

Sponsored By: Representative Miller, Mary E. [R-IL-15]

Passed House

Summary

Strengthens fraud penalties and data-driven oversight in federal child care programs. The Stop Child Care Scams Act of 2026 would tighten monitoring, require states to report detailed improper payments, and increase sanctions for providers and institutions found to commit fraud.

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  • Families and children: The bill would force states to report improper payments broken out by suspected and verified fraud so taxpayer funds can be tracked and targeted to eligible children.
  • States and local agencies: It would set a 5 percent improper payment threshold and require corrective action plans. States that exceed 5 percent for two consecutive fiscal years face conditional ineligibility and must show reduction or significant progress. The bill also creates a 3-year cycle for comprehensive performance reviews and extra monitoring for high-risk states.
  • Providers and institutions: The bill would establish a formal fraud determination process and require permanent debarment for providers after a final determination of fraud. It extends debarment across child care and child nutrition programs and removes the authority to waive sanctions.

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Bill Overview

Analyzed Economic Effects

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

Permanent bans for fraudulent child care providers

Child care providers with a final fraud finding would be permanently barred from CCDBG funds. “Final” means an administrative order or court decision with appeals exhausted or waived. Covered conduct includes false claims, fake enrollment or eligibility, operating without the required license, or knowingly misusing funds. Debarments would also apply across CCDBG and the Child and Adult Care Food Program.

GAO study on child care fraud

The Government Accountability Office would study fraud prevention in Head Start, the child care block grant, and the Child and Adult Care Food Program. The study would review provider controls, whether federal data are sufficient and used well, and State results when duties are delegated to local agencies. GAO would send findings and any recommended rules or laws to the House Education and Workforce Committee and the Senate HELP Committee within 2 years of enactment.

Stricter child care fraud rules for states

States would have to treat fraudulent payments as improper child care payments and add stronger integrity steps to their CCDBG plan, including eligibility checks and use of other agencies’ data. Each year, if a State’s improper‑payment rate is over 5%, it would have to file a corrective action plan and reports. If a State stays over 5% for two years, it would be ineligible for CCDBG funds unless it cuts the rate to 5% next year or shows strong progress on the plan. States would send an annual breakdown of dollars and percentages for suspected and confirmed fraud, non‑fraud overpayments, underpayments, and system errors. The Secretary would investigate fraud, review each State at least every 3 years, and give high‑risk States extra monitoring.

Sponsors & CoSponsors

Sponsor

Miller, Mary E. [R-IL-15]

IL • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 427 • No: 420

house vote • 6/3/2026

On Motion to Recommit

Yes: 210 • No: 213

house vote • 6/3/2026

On Passage

Yes: 217 • No: 207

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