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@EdWorkforceCmte Cracks Down on Child Care Fraud

Today, the Education and Workforce Committee passed eight bills aimed at cracking down on fraud, strengthening oversight, and protecting taxpayer dollars in federal child care assistance programs. The bills are focused on one simple principle: money meant for children and working families should not be lost to fraud or waste. 

Following the markup, Education and Workforce Committee Chairman Tim Walberg (R-MI) said: “Every dollar lost to fraud is a dollar that doesn’t help a working parent care for a child or put food on the table. Most states and providers do the right thing. But when there are gaps in oversight, bad actors take advantage. In Minnesota, we’ve seen fraudsters use ‘learing centers’ to steal billions from hardworking taxpayers—and innocent children. This kind of abuse is deplorable and makes victims of our nation’s most vulnerable. That is why the Committee is acting. These bills close those gaps, set clear standards, and make accountability the rule not the exception. Bottom line, protecting these programs means protecting the families who rely on them.”

H.R. 7720, Child Care Payment Integrity and Fraud Accountability Act, authored by Rep. Mark Messmer (R-IN):
  • Requires states to report fraud as its own category instead of lumping it in with general payment errors.
H.R. 7721, Combating Regulatory Abuse, Closing Known Deficiencies, and Overseeing Waste Nationwide (CRACKDOWN) Act, authored by Rep. Glenn Grothman (R-WI):
  • Sets a clear 5 percent threshold for improper payments. If a state exceeds that level, corrective action will be required.
H.R. 7722, Child Care Integrity Monitoring Act, authored by Rep. Bob Onder (R-MO):
  • Puts a formal three-year audit cycle into law and flags repeat offenders for closer oversight. 
H.R. 7723, Safeguarding Taxpayer Dollars in Child Care Act, authored by Rep. Virginia Foxx (R-NC):
  • Prevents providers who are kicked out of one federal program for fraud from simply moving to another. 
H.R. 7724, No Waivers for Fraud Act, authored by Rep. Joe Wilson (R-SC):
  • Eliminates the ability to waive sanctions after fraud or serious violations are found.
H.R. 7725, Stop Child Care Fraud Act, authored by Rep. Michael Rulli (R-OH):
  • Improves data sharing between state agencies so fraud warning signs don’t get missed. 
H.R. 7677, Closing the Provider Fraud Gap Actauthored by Rep. Burgess Owens (R-UT):
  • Directs the Government Accountability Office to identify vulnerabilities in direct payments to providers and recommend ways to prevent abuse. 
H.R. 7726, No Funds for Repeat Child Care Violations Actauthored by Rep. Mary Miller (R-IL): 
  • Withholds funds from states that fail to address fraud or repeat violations.

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