Walberg: House Moves to Shut Down Child Care Scams, Protect Families and Taxpayers
WASHINGTON, D.C.,
June 3, 2026
Education and Workforce Committee Chairman Tim Walberg (R-MI) released the following statement after the House passed H.R. 7726, Stop Child Care Scams Act—legislation that cracks down on fraud, strengthens oversight, and protects taxpayer dollars in federal child care assistance programs:
“Americans deserve to know their taxpayer dollars are helping families—not lining the pockets of fraudsters. We’ve already seen bad actors exploit weak oversight, including schemes in Minnesota where so-called ‘learning centers’ stole millions meant for children.This legislation puts an end to those abuses by strengthening oversight, increasing accountability, and ensuring funds go where they’re intended. Cracking down on waste, fraud, and abuse will protect taxpayers, ensure opportunity, and help more parents access the child care they need to get to work. Simply put, this bill makes sure fraudsters don’t come before families.” BACKGROUND: Stop Child Care Scams Act includes eight reforms to crack down on fraud and force accountability: Child Care Payment Integrity and Fraud Accountability Act (Rep. Messmer) Current law masks fraud by lumping it in with other payment errors. This bill forces states to track and report fraud directly—because you can’t stop what you refuse to measure. Combating Regulatory Abuse, Closing Known Deficiencies, and Overseeing Waste Nationwide (CRACKDOWN) Act (Rep. Grothman) States that allow improper payments to spiral out of control will be held accountable. A clear 5 percent threshold ensures problems are addressed before they explode. Child Care Integrity Monitoring Act (Rep. Onder) Ends the hands-off approach to oversight by requiring regular audits and labeling chronic violators as high-risk. Safeguarding Taxpayer Dollars in Child Care Act (Rep. Foxx) Fraudulent providers will no longer be able to game the system by jumping between programs. If you cheat one program, you’re out of both. No Waivers for Fraud Act (Rep. Wilson) No more free passes. States that fail to enforce the rules cannot use HHS waivers to doge accountability. Stop Child Care Fraud Act (Rep. Rulli) Fraud often goes undetected because agencies don’t communicate. This bill forces coordination so red flags aren’t ignored. Closing the Provider Fraud Gap Act (Rep. Owens) As taxpayer dollars continue to go out the door, this report identifies exactly where fraud is slipping through the cracks. No Funds for Repeat Child Care Violations Act (Rep. Miller) Replaces bureaucratic discretion with mandatory action. If states fail to address fraud, funding consequences will follow—no exceptions. ### |