119 HR 7721 RH: Combating Regulatory Abuse, Closing Known Deficiencies, and Overseeing Waste Nationwide Act of 2026 U.S. House of Representatives 2026-04-06 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

IBUnion Calendar No. 507119th CONGRESS2d SessionH. R. 7721[Report No. 119–587]IN THE HOUSE OF REPRESENTATIVESFebruary 26, 2026Mr. Grothman introduced the following bill; which was referred to the Committee on Education and WorkforceApril 6, 2026Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printedStrike out all after the enacting clause and insert the part printed in italicFor text of introduced bill, see copy of bill as introduced on February 26, 2026A BILLTo amend the Child Care and Development Block Grant Act of 1990 to implement an improper payment threshold under such Act.

1.

Short title

This Act may be cited as the Combating Regulatory Abuse, Closing Known Deficiencies, and Overseeing Waste Nationwide Act of 2026 or the CRACKDOWN Act of 2026.

2.

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(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)..

April 6, 2026Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed