What does Preamble of Stop Child Care Funding Fraud Act of 2026 do?

This bill amends the Child Care and Development Block Grant Act of 1990. The stated purpose is to provide transparency and accountability in the administration of Federal child care funds expended by the States.

What does SHORT TITLE. of Stop Child Care Funding Fraud Act of 2026 do?

This bill is formally titled the Stop Child Care Funding Fraud Act of 2026.

What does AMENDMENTS. of Stop Child Care Funding Fraud Act of 2026 do?

This section amends the Child Care and Development Block Grant Act of 1990 to establish requirements for state reporting and corrective action regarding improper payments. States must submit reports to the Secretary detailing the rate of improper payments made with funds received under the subchapter, no later than June 30 of each program period. If a state's improper payment rate exceeds 6%, the Secretary may reduce the state's funding by 5%, 10%, or 15%, depending on the rate. States with rates exceeding 6% must also submit a corrective action plan within 60 days of submitting the report, including verified child attendance documentation. An 'improper payment' is defined as a payment that doesn't comply with the subchapter due to issues like exceeding or falling short of the correct amount, providing services to ineligible children, or unverified compliance. The Secretary retains the authority to withhold funds if a state violates the subchapter or its regulations. The Secretary's report under section 658L(a) must be disaggregated by state and include a state-by-state breakdown of improper payment rates and actions taken to reduce them.

What does EFFECTIVE DATE. of Stop Child Care Funding Fraud Act of 2026 do?

This Act will become effective one year after its enactment.

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Stop Child Care Funding Fraud Act of 2026

Last updated: 3/4/2026 · Introduced: 3/4/2026

Author: Mike Kennedy (R-UT)

TL;DR (AI)

This bill requires states receiving federal child care funds to report their improper payment rates annually, defining improper payments as those not complying with the Child Care and Development Block Grant Act.
States exceeding a 6% improper payment rate will face potential funding reductions of 5%, 10%, or 15% and must submit corrective action plans with verified child attendance documentation.
The Secretary of the relevant agency will publish a report with state-by-state breakdowns of improper payment rates and actions taken to address them.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

4 sections

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