119 HR 7723 RH: Safeguarding Taxpayer Dollars in Child Care 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.

IB Union Calendar No. 509 119th CONGRESS2d Session H. R. 7723 [Report No. 119–589] IN THE HOUSE OF REPRESENTATIVES February 26, 2026 Ms. Foxx introduced the following bill; which was referred to the Committee on Education and Workforce April 6, 2026 Additional sponsor: Ms. Letlow April 6, 2026 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on February 26, 2026 A BILL To amend the Child Care and Development Block Grant Act of 1990 to debar child care providers that committed fraud from receiving financial assistance under the Act, and for other purposes.

1.

Short title

This Act may be cited as the Safeguarding Taxpayer Dollars in Child Care Act of 2026.

2.

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..

3.

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..

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