NO FUNDS FOR REPEAT CHILD CARE VIOLATIONS ACT OF 2026

On 2026-06-03, Representative Mary E. Miller (R-IL-15) delivered a floor speech titled "NO FUNDS FOR REPEAT CHILD CARE VIOLATIONS ACT OF 2026" in the House.

NO FUNDS FOR REPEAT CHILD CARE VIOLATIONS ACT OF 2026

Congressional Record, Volume 172 Issue 94 (Wednesday, June 3, 2026) [Congressional Record Volume 172, Number 94 (Wednesday, June 3, 2026)] [House] [Pages H3796-H3805] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] NO FUNDS FOR REPEAT CHILD CARE VIOLATIONS ACT OF 2026 Mr. WALBERG. Mr. Speaker, pursuant to House Resolution 1333, I call up the bill (H.R. 7726) to amend the Child Care and Development Block Grant Act of 1990 to withhold funds from noncompliant States under such Act, and ask for its immediate consideration in the House. The Clerk read the title of the bill. The SPEAKER pro tempore (Mr. Jack). Pursuant to House Resolution 1333, in lieu of the amendment in the nature of a substitute recommended by the Committee on Education and Workforce printed in the bill, an amendment in the nature of a substitute consisting of the text of Rules Committee Print 119-32 is adopted, and the bill, as amended, is considered read. The text of the bill, as amended, is as follows: H.R. 7726 Be it enacted by the Senate and House of Representatives of the United States of American in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Stop Child Care Scams Act of 2026''. SEC. 2. STRENGTHENING THE AUTHORITY TO WITHHOLD FUNDS FOR FRAUD. Section 658I(b)(2)(B) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858g(b)(2)) is amended by striking ``Secretary may'' and inserting ``Secretary shall''. SEC. 3. PROGRAM INTEGRITY AND ACCOUNTABILITY. Section 658E(c)(2) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(2)) is amended by adding at the end the following: ``(W) Program integrity and accountability.--The plan shall include a description of-- ``(i) the State's internal controls to ensure program integrity and accountability; ``(ii) the processes in place-- ``(I) to investigate and recover fraudulent payments; and ``(II) to impose sanctions on clients or providers in response to fraud; and ``(iii) the procedures in place to document and verify eligibility. Such description shall include how the State utilizes data within and across other State and local agencies that have oversight of child care providers that serve children who receive assistance under this subchapter.''. SEC. 4. PREVENTING FRAUD IN THE CHILD CARE AND DEVELOPMENT BLOCK GRANT PROGRAM. Section 658I(b) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858g(b)) is amended-- (1) by redesignating paragraph (3) as paragraph (4); and (2) by inserting after paragraph (2) the following: ``(3) Determination of fraud.-- ``(A) Investigation.--The Secretary shall investigate fraud with respect to financial assistance available under this subchapter. ``(B) Debarment.--In the case that the Secretary makes, or finds that there has been, a final determination of fraud against a child care provider that received financial assistance available under this subchapter, the Secretary shall permanently debar such child care provider from receiving such financial assistance. ``(C) Providers debarred from child and adult care food program.--In the case that a child care provider has been debarred from participating in the Child and Adult Care Food Program under section 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766) in accordance with subsection (d)(5)(E)(i) of such section, the Secretary shall permanently debar such child care provider from receiving financial assistance under this subchapter. ``(D) Final determination of fraud definition.--In this paragraph, the term `final determination of fraud' means a determination reached in an administrative order or as part of a judicial decision, for which any rights to review or appeal have been exhausted or waived, that a child care provider-- ``(i) knowingly submitted a false statement or documentation to obtain financial assistance available under this subchapter; ``(ii) misrepresented ownership of, enrollment at, attendance at, or services provided through a program of child care services, or the eligibility of the provider to provide such services, to obtain such financial assistance; ``(iii) to obtain such financial assistance, operated without the State licensing described in section 658E(c)(2)(F) and without receiving an exception to such licensing; ``(iv) made a knowing and improper expenditure of such financial assistance; or ``(v) engaged in any other conduct related to such financial assistance that constituted fraud under Federal or State law.''. SEC. 5. IMPROPER PAYMENT RATE REQUIRING CORRECTIVE ACTION PLAN; CONDITIONAL INELIGIBILITY. Section 658J of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858h) is amended-- (1) by redesignating subsection (c) as subsection (e), and (2) by inserting after subsection (b) the following: ``(c) Improper Payment Threshold Requiring Corrective Action Plan.--If for a fiscal year the improper payment rate of a State is more than 5 percent of the aggregate amount of payments made to carry out this subchapter by such State for such fiscal year, then such State shall submit to the Secretary-- ``(1) for review and approval a corrective action plan to reduce such rate to not more than 5 percent for each subsequent fiscal year; and [[Page H3797]] ``(2) such reports as the Secretary may require to show that such State is complying with the requirements of such plan as approved by the Secretary. ``(d) Conditional Ineligibility.--If for each of 2 consecutive fiscal years the improper payment rate of a State determined under this section is more 5 percent, then such State shall be ineligible to receive funds under this subchapter unless such State demonstrates to the satisfaction of the Secretary that such State for the next fiscal year will-- ``(1) reduce such improper payment rate to not more than 5 percent for the next fiscal year; or ``(2) make significant progress to comply with the corrective action plan approved under subsection (c).''. SEC. 6. CYCLICAL MONITORING OF STATE PERFORMANCE. Section 658K of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858i) is amended by adding at the end the following: ``(c) Periodic Monitoring by the Secretary.--At 3-year intervals, the Secretary shall conduct a comprehensive review of the performance of each State that receives assistance under this subchapter. Based on the results of such review, the Secretary shall designate as high risk a State that has-- ``(1) a high level of unresolved or repeated adverse audit findings submitted under subsection (b); ``(2) a high level of unresolved issues under, or repeated performance failures to carry out, corrective action plans submitted by such State under section 659J(c); or ``(3) unresolved or repeat findings of noncompliance with the State plan approved under section 658E(c). ``(d) Required Additional Monitoring.--If a State is designated as high risk under subsection (a), then the performance of such State shall be subject to additional monitoring, as determined by the Secretary.''. SEC. 7. PREVENTING FRAUD IN THE CHILD AND ADULT CARE FOOD PROGRAM. Section 17(d)(5) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(d)(5)) is amended-- (1) by redesignating subparagraph (E) as subparagraph (F); and (2) by inserting after subparagraph (D) the following: ``(E) Termination due to fraud.-- ``(i) Debarment.--In the case that the participation of an institution or family or group day care home under the program is terminated due to a final determination of fraud, the Secretary shall permanently debar such institution or family or group day care home from participating in the program. ``(ii) Providers debarred from child care and development block grant program.--In the case that an institution or family or group day care home has been debarred from receiving financial assistance under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.) in accordance with section 658I(b)(3)(B) of such Act, the Secretary shall permanently debar such institution or family or group day care home from participating in the program. ``(iii) Final determination of fraud definition.--In this subparagraph, the term `final determination of fraud' means a determination reached in accordance with the procedures and requirements of this section, for which any rights to review or appeal have been exhausted or waived, that an institution or family or group day care home-- ``(I) knowingly submitted a false statement or documentation to obtain funds disbursed under subsection (f)(1)(A); ``(II) misrepresented ownership, enrollment, attendance, or services in connection with the operation of the program by such institution or family or group day care home, or the eligibility of such institution or family or group day care home to operate the program, to obtain such funds; ``(III) made a knowing and improper expenditure of such funds; or ``(IV) engaged in any other conduct related to such funds that constituted fraud under Federal or State law.''. SEC. 8. ELIMINATING AUTHORITY TO WAIVE SANCTIONS. Section 658I(c) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858lg(c)) is amended-- (1) in paragraph (1) by striking ``or sanctions imposed upon a State in accordance with subsection (b)(2)'', (2) in paragraph (2)-- (A) in subparagraph (A) by striking ``sanction or'', and (B) in subparagraph (B) by striking ``sanction or'', (3) in paragraph (3) striking ``sanction or'', and (4) in paragraph (7) by striking ``sanction(s) or''. SEC. 9. GAO STUDY AND REPORT ON PROVIDER-RELATED FRAUD. (a) Study.--The Comptroller General of the United States shall conduct a study regarding fraud prevention measures in Federal early childhood education, child care, and child nutrition programs that shall include an analysis of-- (1) the effectiveness of procedures and measures to prevent fraud carried out by providers of servi

Referenced legislation: HRES1333, HRES1333, HR7720, HR7721, HR7723, HR7724, HR7726