Bill > HR7726

This bill, the Stop Child Care Scams Act of 2026, aims to strengthen oversight and prevent fraud within the Child Care and Development Block Grant (CCDBG) program, which provides federal funding to states for child care assistance. Key provisions include making it mandatory for the Secretary of Health and Human Services to withhold funds from states that are not compliant with the CCDBG Act, rather than having the option to do so. States will be required to detail their internal controls, investigation processes for fraudulent payments, and sanctions for those involved in fraud in their plans. Furthermore, the bill mandates that the Secretary investigate fraud and permanently ban child care providers found guilty of fraud from receiving CCDBG funds, and also from the Child and Adult Care Food Program if they are already banned from that program. If a state's improper payment rate exceeds 5% for two consecutive years, they will be ineligible for funds unless they demonstrate a plan to reduce this rate or make significant progress. The bill also introduces a cyclical monitoring system where the Secretary will conduct comprehensive reviews of state performance every three years, designating "high risk" states for additional scrutiny. Finally, it requires a study and report by the Comptroller General on fraud prevention measures across federal early childhood education, child care, and child nutrition programs, and mandates that states report annually on the types and amounts of improper payments they make.