What does Preamble of Stop Child Care Scams Act of 2026 do?

This bill proposes to amend the Child Care and Development Block Grant Act of 1990. The proposed amendment would authorize the withholding of funds from states deemed noncompliant under the Act.

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

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

What does STRENGTHENING THE AUTHORITY TO WITHHOLD FUNDS FOR FRAUD. of Stop Child Care Scams Act of 2026 do?

This section amends Section 658I(b)(2)(B) of the Child Care and Development Block Grant Act of 1990. The amendment changes the language from 'Secretary may' to 'Secretary shall'.

What does PROGRAM INTEGRITY AND ACCOUNTABILITY. of Stop Child Care Scams Act of 2026 do?

This section amends Section 658E(c)(2) of the Child Care and Development Block Grant Act of 1990. The amendment requires states to include a description of their internal controls to ensure program integrity and accountability in their plans. States must describe processes for investigating and recovering fraudulent payments. States must also describe processes for imposing sanctions on clients or providers in response to fraud. The plans must detail procedures for documenting and verifying eligibility. States are required to describe how they utilize data from other agencies that oversee child care providers.

What does PREVENTING FRAUD IN THE CHILD CARE AND DEVELOPMENT BLOCK GRANT of Stop Child Care Scams Act of 2026 do?

This section amends Section 658I(b) of the Child Care and Development Block Grant Act of 1990. The Secretary is required to investigate fraud related to financial assistance under the subchapter. Child care providers found to have committed fraud, through a final determination, will be permanently debarred from receiving financial assistance. Providers debarred from the Child and Adult Care Food Program are also subject to permanent debarment from the Child Care and Development Block Grant. A 'final determination of fraud' requires an administrative order or judicial decision where review or appeal rights have been exhausted or waived. The definition of 'final determination of fraud' includes knowingly submitting false statements, misrepresenting information, operating without proper licensing, improper expenditures, or other fraudulent conduct under federal or state law.

What does IMPROPER PAYMENT RATE REQUIRING CORRECTIVE ACTION PLAN; of Stop Child Care Scams Act of 2026 do?

This section amends Section 658J of the Child Care and Development Block Grant Act of 1990. If a State's improper payment rate exceeds 5 percent of aggregate payments, it must submit a corrective action plan to reduce the rate. The corrective action plan must be reviewed and approved by the Secretary. States must also submit reports demonstrating compliance with the approved plan. If a State's improper payment rate exceeds 5 percent for two consecutive fiscal years, it becomes ineligible for funds unless it demonstrates it will reduce the rate or make significant progress on the corrective action plan.

What does CYCLICAL MONITORING OF STATE PERFORMANCE. of Stop Child Care Scams Act of 2026 do?

This section amends the Child Care and Development Block Grant Act of 1990. The Secretary is required to conduct comprehensive performance reviews of each state receiving assistance under the subchapter every three years. A state may be designated as 'high risk' if it has unresolved audit findings, unresolved issues or performance failures in corrective action plans, or findings of noncompliance with its state plan. If a state is designated as high risk, its performance will be subject to additional monitoring determined by the Secretary.

What does PREVENTING FRAUD IN THE CHILD AND ADULT CARE FOOD PROGRAM. of Stop Child Care Scams Act of 2026 do?

This section amends Section 17(d)(5) of the Richard B. Russell National School Lunch Act. It establishes procedures for debarring institutions or family/group day care homes from the Child and Adult Care Food Program (CACFP) due to fraud. Debarment is permanent if a final determination of fraud is made. An institution or family/group day care home is also debarred if previously debarred from the Child Care and Development Block Grant Act. A 'final determination of fraud' requires exhaustion or waiver of review/appeal rights. Fraud includes knowingly submitting false statements, misrepresenting program details, improper fund expenditures, or other fraudulent conduct under federal or state law.

What does ELIMINATING AUTHORITY TO WAIVE SANCTIONS. of Stop Child Care Scams Act of 2026 do?

This section amends Section 658I(c) of the Child Care and Development Block Grant Act of 1990. The amendments involve striking the phrase 'or sanctions imposed upon a State' in multiple paragraphs within Section 658I(c). Specifically, the phrase is removed from paragraphs (1), (2)(A), (2)(B), (3), and (7).

What does GAO STUDY AND REPORT ON PROVIDER-RELATED FRAUD. of Stop Child Care Scams Act of 2026 do?

This section mandates a study by the Comptroller General of the United States regarding fraud prevention measures in federal early childhood education, child care, and child nutrition programs. The study will analyze the effectiveness of current fraud prevention procedures, the sufficiency and effective use of data received by the federal government, and program integrity results for states delegating program management. The study will specifically examine program integrity results for states that have delegated responsibilities to counties or other entities within the Child Care and Development Block Grant program. The Comptroller General must submit a report to the House and Senate committees containing the study's results and recommendations for regulatory or legislative improvements. The report is due within two years of the section's enactment. The term 'Federal early childhood education, child care, and child nutrition programs' includes Head Start, the Child and Adult Care Food Program, and the Child Care and Development Block Grant program.

Back to bills

Stop Child Care Scams Act of 2026

Last updated: 6/16/2026 · Introduced: 6/16/2026

Author: Ashley Moody (R-FL)

TL;DR (AI)

This bill mandates that the Secretary shall withhold funds from states found noncompliant with the Child Care and Development Block Grant Act, replacing previous discretionary authority.
States are now required to detail their internal controls, investigation processes, and sanctions for fraud within their program plans.
Child care providers found to commit fraud, as determined by a final order or judicial decision, will face permanent debarment from receiving federal financial assistance.
States with improper payment rates exceeding 5% must submit corrective action plans, and repeated failures may result in ineligibility for funds.
The bill requires the Government Accountability Office (GAO) to conduct a study and report on fraud prevention measures within federal early childhood education, child care, and child nutrition programs.

119th Congressin committeeOfficial page

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