Stop Child Care Funding Fraud Act of 2026
Sponsored By: Representative Kennedy, Mike [R-UT-3]
Introduced
Summary
Reduce improper payments in federal child care funds. This bill would create a State Improper Payments program that makes states report improper payments, file corrective action plans, and face funding cuts tied to their error rates.
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- Families and children: Requires states to provide verified child attendance documentation in aggregated form so payments match actual care while protecting individual privacy.
- State agencies: Would force states to submit corrective action plans within 60 days and follow required fixes before funding can be fully restored.
- Funding and enforcement: Would let the federal government cut a state’s CCDBG funding when improper payment rates are high, with cuts ranging from 5% to 15% until the state fixes the issues.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Child care grants cut for states
This bill would require States to report their child care improper payment rate by June 30 each program period. If a State's rate exceeds 6 percent, it would need to submit a corrective action plan within 60 days that includes aggregated attendance verification. The Secretary would reduce a State's federal child care grant by 5% for rates >6%–<8%, 10% for rates ≥8%–<10%, and 15% for rates ≥10%. Reductions would continue each program period until the Secretary certifies plan implementation and required data submission. The Secretary's annual report would show each State's rate and actions taken. The bill would take effect one year after enactment.
Sponsors & CoSponsors
Sponsor
Kennedy, Mike [R-UT-3]
UT • R
Cosponsors
Pfluger
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.
View on Congress.gov