HR7721119th CongressWALLET

CRACKDOWN Act of 2026

Sponsored By: Representative Grothman

Introduced

Summary

Limits State overpayments to 5 percent of Child Care and Development Block Grant payments. It requires states with higher overpayment rates to submit corrective action plans and gives the Secretary authority to condition future CCDBG funding on sustained progress.

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  • States that exceed a 5 percent overpayment rate in a fiscal year must submit a corrective action plan to the Secretary and provide any reports the Secretary requires to show compliance.
  • If a State's overpayment rate is above 5 percent for two consecutive fiscal years the State becomes ineligible to receive funds under this subchapter unless it demonstrates for the next fiscal year it will either reduce the overpayment rate to not more than 5 percent or make significant progress on the approved corrective action plan.
  • The Secretary reviews and approves corrective action plans and monitors compliance through required reporting.

Bill Overview

Analyzed Economic Effects

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

New overpayment limit for child care

If enacted, the bill would set a 5% overpayment-rate limit for State CCDBG child-care payments each fiscal year. If a State's overpayment rate is over 5% in a fiscal year, the State would have to submit a corrective action plan to the Secretary and file reports showing compliance. If the rate is over 5% for two years in a row, the State would be ineligible for CCDBG funds unless it shows it will cut the rate to 5% or make significant progress on the approved plan the next year. This would aim to reduce program waste but would also risk federal child-care money and reduce subsidized care access for low-income families if States fail to comply.

Sponsors & CoSponsors

Sponsor

Grothman

WI • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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