STOP Child Care Fraud Act
Sponsored By: Senator Cassidy, Bill [R-LA]
Introduced
Summary
Strengthen fraud prevention and accountability in federal child care subsidies. This bill would tighten who qualifies for care, require verified attendance for payments, and increase audits and penalties to catch improper payments.
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- Families: Limits eligibility with a $500,000 family asset cap and new income rules tying eligibility to 85% of the State median income using the latest Census data. It narrows presumptive eligibility to narrow emergency exceptions.
- Providers: Shifts payments toward attendance-based reimbursement and requires electronic attendance verification, while allowing States to delink fixed costs for up to 6 days per month. It also requires timely invoicing and creates a national provider disqualification database that bars listed providers from receiving Federal funds.
- States and oversight: Sets stronger audit and monitoring rules, makes corrective action plans mandatory, and triggers heightened oversight at a 6% improper payment rate. The bill lets the Secretary withhold funds for noncompliance and creates a 3% set-aside to support quality and licensing activities.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 1 benefits, 1 costs, 2 mixed.
Stricter verification for child care help
If enacted, States would have to verify every child's eligibility with full paperwork and not allow self-certification. Except for limited emergency exceptions set by the Secretary, a child would not get a subsidy before full documentation. Parents would have to report changes in work, training, or family income within 90 days.
New attendance and billing rules for providers
If enacted, States would require provider payments to be based on verified attendance. Providers could still get full pay when a child misses six days or fewer in a month. Providers would need to file a complete invoice within nine months of the service date and States would have to pay within 21 days of a complete invoice. State plans would also have to describe use of electronic attendance tools and data integration, and the Secretary would issue rules on attendance verification within one year.
Tougher audits, penalties, and provider bans
If enacted, States would have to count suspected and confirmed fraud as improper payments and the Secretary would require corrective plans when a State's improper payment rate exceeds 6 percent. Repeated 6 percent reports or any report over 9 percent could trigger a high-risk designation and more monitoring. The Secretary would be required to withhold funds if a State misses corrective-plan deadlines or fails to implement plans, and could impose percentages cuts to next-year allotments. The bill would add a 5 percent penalty to amounts the Secretary requires a State to repay. The Secretary would also keep a national database of providers disqualified by a court for fraud and block those providers from receiving Federal funds. States would have to post plans and corrective actions on public websites and have specified appeal deadlines.
3% set-aside for quality and inspections
If enacted, States would have to set aside 3 percent of certain reserved child care funds each year for quality improvement and for inspection, monitoring, and licensing activities. That money would pay for quality and compliance efforts under the child care program.
Sponsors & CoSponsors
Sponsor
Cassidy, Bill [R-LA]
LA • R
Cosponsors
Sen. Tuberville, Tommy [R-AL]
AL • R
Sponsored 7/14/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov