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Chair Walberg: End Fraud in Child Care Programs

 Education and Workforce Committee Chairman Tim Walberg (R-MI) today spoke on the House Floor in support of H.R. 7726, Stop Child Care Scams Act, legislation that cracks down on fraud in federal child care assistance programs so taxpayer dollars reach the children and families they are intended to serve.

Chairman Walberg's remarks, as prepared for delivery:

"Fraud isn’t new—but what we’ve seen in recent years is staggering. Billions of dollars have been stolen from programs meant to help children and families. As Americans work day-in and day-out to put food on the table and support their families, fraudsters are lining their pockets with dollars meant to help hungry Americans and innocent children.

"And let me make one thing perfectly clear: every dollar stolen through fraud is a dollar that cannot help feed a hungry person or provide child care for kids and families who need it.

"Minnesota has become a glaring example of this failure. Fake businesses like the now-infamous "Quality Learning Center' claimed to serve children—but in reality, many of these facilities sat empty with no students and no staff.

"The scale of this abuse is staggering. An estimated $9 billion lost to fraud. That’s $9 billion that could have supported real child care services or fed families in need. Instead, weak oversight allowed criminals to get rich at the expense of children and taxpayers.

"And it doesn’t stop there. During the COVID-19 pandemic, leaders of the nonprofit group Feeding Our Future stole more than $250 million in federal nutrition funds meant for hungry children. Instead, those dollars were spent lavishly on luxury cars and mansions. That is not just fraud, it is theft from the most vulnerable.

"Unfortunately, this problem extends far beyond one state. Across the country, fraudsters are taking advantage of gaps in oversight while taxpayers foot the bill.

"That is why this legislation is so important. In March, my Committee passed the eight bills included in this package. I want to thank Representatives Messmer, Grothman, Onder, Foxx, Wilson, Rulli, Owens, and Miller for their hard work to tackle this problem.  

"Each of their bills is included in the Stop Child Care Scams Act, which delivers common-sense reforms to restore integrity to these programs. It strengthens auditing, data sharing, and increases reporting requirements to detect and prevent fraud.

"Just as importantly it kicks fraudsters out of assistance programs—ensuring bad actors can’t jump between federal assistance programs to defraud hardworking Americans.

"This bill is guided by a simple principle: taxpayer money meant for children and working families should never be lost to waste, fraud, or abuse.

"We know most child care providers are doing the right thing. But when fraud runs rampant, it drives up costs, reduces access, and undermines trust in the system. If we want to protect affordable, high-quality child care, we must first eliminate the fraud draining these programs.  

"I urge my colleagues to support the Stop Child Care Scams Act to protect children, restore accountability, and ensure these programs serve those who truly need them."

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