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119-hr-7794119th CongressWALLET

Stop Child Care Funding Fraud Act of 2026

Sponsored By: Representative Kennedy, Mike [R-UT-3]

Introduced

Summary

Stop improper child care payments. This bill would push states to track and fix errors in child care subsidy payments.

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  • States would have to report annually by June 30 for each program period their improper payment rate and the steps they will take to lower it. If a state's rate exceeds 6 percent the state must submit a corrective action plan within 60 days that includes aggregated, non‑identifiable verified attendance data.
  • States with error rates above 6 percent face tiered cuts to their child care grants, starting at 5 percent and rising up to 15 percent until a corrective plan is certified.
  • The Secretary's national report would be disaggregated by State and include each State's improper payment rate and the actions taken to reduce it.
  • The reporting and penalty rules would take effect one year after enactment.

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Bill Overview

Analyzed Economic Effects

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

Cuts for states with child care errors

If enacted, the bill would reduce a State's child care grant when its reported improper payment rate is high. Over 6 percent and under 8 percent would trigger a 5 percent cut. 8 percent to under 10 percent would trigger a 10 percent cut. 10 percent or more would trigger a 15 percent cut. Those cuts would continue each program period until the Secretary certifies the State fixed the problems and submitted required data. The bill would also clarify the Secretary may withhold CCDBG funds from a State that violates the subchapter or its regulations.

State child care reporting rules

If enacted, each State would have to report its improper payment rate for child care grants by June 30 of each program period. If a State reports a rate above 6 percent, it would have 60 days to file a corrective action plan to lower the rate to 6 percent or less. Plans must include verified child attendance records in aggregated form that do not identify individual children. The bill would define "improper payment" to include payments that are too high or too low, paid to ineligible children, or payments that cannot be verified.

Sponsors & CoSponsors

Sponsor

Kennedy, Mike [R-UT-3]

UT • R

Cosponsors

  • Rep. Pfluger, August [R-TX-11]

    TX • R

    Sponsored 3/12/2026

  • Rep. Luna, Anna Paulina [R-FL-13]

    FL • R

    Sponsored 3/24/2026

  • Rep. Calvert, Ken [R-CA-41]

    CA • R

    Sponsored 5/14/2026

Roll Call Votes

No roll call votes available for this bill.

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