Education and Workforce Committee Chairman Tim Walberg said on June 3 that the House has passed H.R. 7726, known as the Stop Child Care Scams Act, which aims to reduce fraud, strengthen oversight, and protect taxpayer dollars in federal child care assistance programs.
Walberg said, “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.”
The Stop Child Care Scams Act includes eight reforms designed to address fraudulent activity within child care funding programs. These measures include requiring states to track and report cases of fraud directly rather than combining them with other payment errors; holding states accountable if improper payments exceed a five percent threshold; mandating regular audits of providers; preventing fraudulent providers from participating in multiple programs; disallowing waivers for states that fail enforcement; requiring agency coordination when investigating potential fraud; identifying gaps where provider-related fraud may occur; and imposing mandatory funding consequences for repeat violations.
The House Education and Workforce Committee manages federal programs concerning education, labor, health and workforce development. The committee also influences policy on issues such as student loans and worker protections. It serves in the legislative sector with jurisdiction over education and labor matters, according to the official website.
Next steps for H.R. 7726 will involve consideration by the Senate.
