Stop Child Care Scams Act of 2026
Ashley Moody (Republican) · Sponsor of record · Official record ↗
- What it does
- The bill would tighten federal child care funding rules by requiring the Health and Human Services Secretary, rather than merely allowing the Secretary, to withhold money from states and permanently bar child care providers that receive a final fraud determination from the Child Care and Development Block Grant program and the Child and Adult Care Food Program. It would also require states to submit corrective action plans when improper payments exceed 5 percent, cut off federal child care funds from states that stay above that rate for two consecutive years unless they demonstrate they will reduce the rate or make significant progress on their corrective action plan, mandate federal reviews every three years that flag high-risk states for extra monitoring, require annual state reports breaking down improper and fraudulent payments, and direct a government watchdog study of fraud prevention across federal child care and nutrition programs. This bill directly affects child care providers by permanently debarring any provider found to have committed fraud from federal child care funds, while states must file detailed fraud-prevention and eligibility-verification plans that tighten scrutiny and reporting for all providers.
- Where it stands
- The bill was read twice and referred to the Committee on Health, Education, Labor, and Pensions on June 16, 2026 and is stalled there. Referral means the bill sits in committee, and the committee is under no obligation to act on it.