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 services under such
programs;
(2) whether the data the Federal Government receives in
connection with such programs (including through audits and
reporting requirements) is--
(A) sufficient to successfully identify fraud carried out
under such programs; and
(B) used effectively by the Federal Government to identify
potential fraud carried out under such programs; and
(3) with respect to the Child Care and Development Block
Grant program established under the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9857 et
seq.)--
(A) the program integrity results for States that have
delegated responsibilities related to program management and
administration to counties, local municipalities, or other
entities; and
(B) whether any corrective action plans have been
implemented by States to improve program integrity results,
including any measurable outcomes from implementing such a
corrective action plan.
(b) Report.--Not later than 2 years after the date of
enactment of this section, the Comptroller General of the
United States shall submit to the Committee on Education and
Workforce of the House of Representatives and the Committee
on Health, Education, Labor, and Pensions of the Senate a
report containing--
(1) the results of the study conducted under subsection
(a); and
(2) any regulatory or legislative recommendations to
improve fraud prevention measures in Federal early childhood
education, child care, and child nutrition programs.
(c) Federal Early Childhood Education, Child Care, and
Child Nutrition Programs Defined.--For the purposes of this
section, the term ``Federal early childhood education, child
care, and child nutrition programs'' includes--
(1) Head Start programs (including Early Head Start
programs) carried out under the Head Start Act (42 U.S.C.
9831 et seq.);
(2) the Child and Adult Care Food Program under section 17
of the Richard B. Russell National School Lunch Act (42
U.S.C. 1766); and
(3) the Child Care and Development Block Grant program
established under the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9857 et seq.).

SEC. 10. FRAUDULENT PAYMENTS.

Section 658J(b) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858h(b)) is amended--
(1) in paragraph (1) by inserting ``(including fraudulent
payments)'' after ``overpayments'', and
(2) by adding at the end the following:
``(3) Report.--The State shall submit to the Secretary an
annual report that identifies the dollar and percentage
amount of improper payments made by the State, disaggregated
as specified by the Secretary by standardized payment
categories (including suspected and verified fraudulent
payments, non-fraudulent overpayments, underpayments, and
technically improper payments (e.g., system error
payments)).''.

The SPEAKER pro tempore. The bill, as amended, shall be debatable for
1 hour equally divided and controlled by the chair and the ranking
minority member of the Committee on Education and Workforce or their
respective designees.
The gentleman from Michigan (Mr. Walberg) and the gentleman from
Virginia (Mr. Scott) each will control 30 minutes.
The Chair now recognizes the gentleman from Michigan (Mr. Walberg).

General Leave

Mr. WALBERG. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on H.R. 7726.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. WALBERG. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today in strong support of the Stop Child Care
Scams Act to fight childcare fraud and protect taxpayer dollars.
Fraud isn't new, but what we have seen in recent years is staggering.
Billions of dollars have been stolen from programs meant to help
children and families. As Americans work day in and day out to put food
on the table and support their families, fraudsters are lining their
pockets with dollars meant to help hungry Americans and innocent
children.
Let me make one thing perfectly clear. Every dollar stolen through
fraud is a dollar that cannot help feed a hungry person or provide
childcare for kids and families who need it.
Minnesota, sadly, has become a glaring example of this failure. Fake
businesses, like the now infamous Quality Learing Center, claimed to
serve children, but in reality, many of these facilities sat empty with
no students and no staff.
The scale of this abuse, Mr. Speaker, is staggering. An estimated $9
billion was lost to fraud. That is $9 billion that could have supported
real childcare services or fed families in need. Instead, weak
oversight allowed criminals to get rich at the expense of children and
taxpayers, and it doesn't stop there.

{time} 1440

During the COVID-19 pandemic, leaders of the nonprofit group Feeding
Our

[[Page H3798]]

Future stole more than $250 million in Federal nutrition funds meant
for hungry children. Instead, those dollars were spent lavishly on
luxury cars and mansions. That is not just fraud. It is theft from the
most vulnerable.
Unfortunately, this problem extends far beyond the State. Across the
country, fraudsters are taking advantage of gaps in oversight while
taxpayers foot the bill. That is why this legislation is so important.
In March, my committee passed the eight bills included in this
package. I thank Representatives Messmer, Grothman, Onder, Foxx,
Wilson, Rulli, Owens, and Miller for their hard work to tackle this
problem.
Each of the bills is included in the Stop Child Care Scams Act, which
delivers commonsense reforms to restore integrity to these programs. It
strengthens auditing and data sharing and increases reporting
requirements to detect and prevent fraud. Just as importantly, it kicks
fraudsters out of assistance programs, ensuring bad actors can't jump
between Federal assistance programs to defraud hardworking Americans.
This bill is guided by a simple principle: Taxpayer money meant for
children and working families should never be lost to waste, fraud, or
abuse.
Mr. Speaker, we know most childcare providers are doing the right
thing, but when fraud runs rampant, it drives up costs, reduces access,
and undermines trust in the system. If we want to protect access to
affordable, high-quality childcare, we must first eliminate the fraud
draining these programs.
Mr. Speaker, I urge my colleagues to support the Stop Child Care
Scams Act to protect children, restore accountability, and ensure these
programs serve those who truly need them.
Mr. Speaker, I reserve the balance of my time.
Mr. SCOTT of Virginia. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in opposition to H.R. 7726 because we know that
childcare is not a luxury. It is a necessity for millions of American
families. Yet, many communities struggle with skyrocketing childcare
costs if they can find any childcare at all. Our economy already loses
an estimated $122 billion every year due to childcare shortages, and
that is a policy failure.
The bill before us does nothing to reduce childcare costs, increase
supply, or improve conditions for providers, and it doesn't even reduce
fraud. Instead, it creates uncertainty and red tape for States and
providers. While the supporters will be discussing the title of the
bill, they are not going to be discussing the substance.
I support efforts to reduce fraud in government programs, but this
bill doesn't do that. States are already required to report error rates
and undergo compliance reviews of the Child Care and Development Block
Grant every 3 years. This bill would require States to triple their
reporting obligations, diverting CCDBG dollars away from families by
increasing administrative costs. More reporting does not reduce fraud.
H.R. 7726 is also extremely vague. It would allow the Health and
Human Services Secretary to designate States as high risk and subject
them to additional monitoring without defining what additional
monitoring or high risk means, and it provides no additional funding to
support these new responsibilities.
Furthermore, it expands situations where the State may be in
noncompliance, opening the door for this legislation to be weaponized
to withhold funding from an entire State that the Trump administration
wants to punish.
The bill also mandates permanent disbarment of providers found guilty
of fraud regardless of mitigating circumstances, and it is unclear who
gets debarred. Is it the individual who was involved, or could it be
the entire franchise operating in multiple States?
In many communities, permanently removing even one provider could
leave families without options for childcare. Furthermore, debarment
from the childcare program requires debarment from the Child and Adult
Care Food Program, so innocent families could lose access to food as
well as childcare.
This legislation fails to stop fraud. Instead, it imposes needless
red tape and bureaucracy on communities that are already strapped for
resources. For that reason, Mr. Speaker, I oppose the bill and reserve
the balance of my time.
Mr. WALBERG. Mr. Speaker, I yield 5 minutes to the gentlewoman from
Illinois (Mrs. Miller), the sponsor of the bill.
Mrs. MILLER of Illinois. Mr. Speaker, I rise today in strong support
of my bill, H.R. 7726, the Stop Child Care Scams Act, which joins with
the administration's efforts to rid the Federal Government of waste,
fraud, and abuse.
Last month, President Trump announced serious reforms to safeguard
Federal taxpayer dollars spent in the Child Care and Development Block
Grant program to ensure that this program is serving the families who
need it most. The Stop Child Care Scams Act builds on those actions by
enforcing program integrity to ensure every State is compliant with
Federal requirements.
Since 2002, the block grant has been identified as a Federal program
at risk for improper payments. The Office of Management and Budget,
GAO, and HHS have all consistently warned that changes are needed to
protect the program from fraud and abuse. In fact, a 2020 GAO report
estimated that under the block grant program, there were $325 million
in improper payments nationwide during the 2019 fiscal year.
HHS data shows that the rate of improper payments in Minnesota's
Federal Child Care Assistance Program is nearly twice the national
average. In this case, the State failed to address fraud or repeated
noncompliance. This is unacceptable, and there must be real
consequences.
In 2024, the owner of several Chicago childcare centers was sentenced
to 4 years in prison for stealing more than $3 million of taxpayer
funds. That is why I am leading H.R. 7726, the Stop Child Care Scams
Act. This bill includes many reforms championed by my colleagues on the
Education and Workforce Committee to make commonsense updates to the
Child Care and Development Block Grant program so that Federal dollars
continue to go to working families, not fraudsters.

Congressman Mark Messmer's Child Care Payment Integrity and Fraud
Accountability Act requires States to assess how many block grant
payments are fraudulent.
Congressman Glenn Grothman's CRACKDOWN Act lowers the improper
payment threshold of grant funds from 10 to 5 percent.
Congressman Bob Onder's Child Care Integrity Monitoring Act requires
an audit of State childcare assistance programs every 3 years.
Congresswoman Virginia Foxx's Safeguarding Taxpayer Dollars in Child
Care Act prevents fraudulent providers from receiving future grant
funds.
Congressman Joe Wilson's No Waivers for Fraud Act leaves sanctions
in place for noncompliant States.
Congressman Mike Rulli's Stop Child Care Fraud Act requires States to
ensure all relevant agencies have access to necessary data and are
examining it to prevent fraud.
Congressman Burgess Owens' Closing the Provider Fraud Gap Act
requires GAO to examine the progress that has been made in protecting
Federal taxpayer dollars in provider-related programs.
Lastly, my No Funds for Repeat Child Care Violations Act withholds
block grant funds from noncompliant States.
Every dollar lost to fraud is a dollar that doesn't support working
families. Fraud harms our families. It harms our workforce. Americans
should have confidence that their Federal taxpayer dollars are being
used responsibly and carefully.
Ensuring accountability for these dollars is not optional. It is
sensible, responsible, and a moral choice to protect working families
who contribute to our communities and help our local economies thrive.
House Republicans are taking waste, fraud, and abuse seriously, and I
urge my colleagues to do the same and support this bill.

{time} 1450

Mr. SCOTT of Virginia. Mr. Speaker, I include in the Record a letter
from public health and anti-hunger organizations, a couple of dozen of
them, that says in part that the provisions of H.R.

[[Page H3799]]

7723 which are now in this bill ``would use existing Serious Deficiency
process to trigger disbarment, which is problematic because it is a
tool that is inconsistently applied and is often triggered by minor
errors rather than fraud or misconduct.''
May 18, 2026.
Re H.R. 7723 and Its Impact on CACFP Participation
Dear Members of the House of Representatives: We, the
undersigned organizations, write to oppose H.R. 7723,
Safeguarding Taxpayer Dollars in Child Care Act, which could
bar child care providers from participating in the child and
Adult Care Food Program (CACFP) and the Child Care and
Development Block Grant (CCDBG) for unintentional or
inadvertent errors.
CACFP is a federal program that provides reimbursements for
nutritious meals and snacks to eligible providers in rural,
suburban, and urban areas in communities across the country,
and is proven to improve children's health, family economic
stability, and child care quality. This program ensures that
children in every state have access to healthy meals and
snacks at participating child care centers, family child care
homes, Head Start programs, afterschool programs, and
emergency shelters.
H.R. 7723 seeks to bar providers from receiving federal
funds if they commit fraud, but states are already
administering CACFP with strong oversight systems
specifically designed to detect and prevent integrity
concerns. These systems are built from U.S. Department of
Agriculture (USDA) guidance and technica1 assistance.
H.R. 7723 would use the existing Serious Deficiency (SD)
process to trigger disbarment, which is problematic because
it is a tool that is inconsistently applied and is often
triggered by minor errors rather than fraud or misconduct.
In May 2024, USDA began the rulemaking process to update
and improve the SD process, with hundreds of stakeholders
urging USDA to clearly define fraud and provide more
technical assistance. These identified improvements must be
included in a Final Rule to ensure due process and that
children and families do not lose access to quality and
community-based child care due to minor or inadvertent
errors.
``We are also concerned about the chilling effect this bill
may have on child care providers.'' Fear of losing CCDBG
funding over inadvertent CACFP errors could push providers to
withdraw from CACFP entirely, reducing children's access to
healthy meals at a critical time for their health and
development.
We strongly support holding providers who commit fraud
accountable. However, inaccurate or exaggerated claims about
alleged fraud should not be the basis for jeopardizing
children's access to nutritious food and access to quality
and locally-based child care. We urge you to oppose this
bill.
Thank you for your consideration to ensure access to high
quality and community-based child nutrition and child care.
We welcome the opportunity to discuss these concerns further.
Sincerely,
National Organizations:
American Federation of State, County and Municipal
Employees (AFSCME); CACFP Roundtable; Center for Law and
Social Policy (CLASP); Common Threads; Food Research & Action
Center (FRAC); First Focus Campaign for Children; National
Association for Family Child Care; National CACFP
Association; National CACFP Forum; National Farm to School
Network; ZERO TO THREE.
State and Local Organizations:
Alpha & Omega Nutrition Program, Inc. (Tennessee); Child
Nutrition Services (Nebraska); Children's Hunger Alliance
(Ohio); CocoKids Inc (California); Genesee County Interagency
Council (New York); Giving Youth A Chance (Tennessee); Hawaii
Children's Action Network Speaks!; Indy Hunger Network
(Indiana); Lucia Mar USD (California); Marathon County Child
Development Agency (Wisconsin); Marshmallow Home Daycare LLC
(California); Missouri State Center for Ozarks Poverty
Research; Northwest Harvest (Washington); Oppenheim
Consulting, LLC; San Francisco--Marin Food Bank (California);
Second Harvest Food Bank of Orange County (California); Tiny
Tots and Little Tykes, Inc. (Minnesota).

Mr. SCOTT of Virginia. Mr. Speaker, I also include in the Record a
letter from AFSCME, Education Healthcare Public Services, and SEIU that
says in part: ``This bill would enable the administration to withdraw
Federal childcare funds abruptly without cause, making childcare less
affordable and reliable for working families.''
June 2, 2026.
House of Representatives,
Washington, DC.
Dear Representative: On behalf of the 5 million members of
the American Federation of State, County and Municipal
Employees (AFSCME), American Federation of Teachers (AFT),
and Service Employees International Union (SEIU), we write
collectively in opposition to Stop Child Care Scams Act (H.R.
7726), which purports to address allegations of fraud in
child care programs. ``This bill would enable the
administration to withdraw federal childcare funds abruptly
without cause, making childcare less affordable and reliable
for working families.'' This legislation would also make it
even more difficult for struggling childcare providers to
keep their doors open. We urge you to vote no on H.R. 7726.
Our unions represent family childcare providers, childcare
centers, programs and services, and preschool employees. Some
of these programs span traditional working hours and others
operate well beyond the traditional work day to accommodate
parents who are healthcare workers on 12-hour shifts, service
members working on bases that operate 24/7, construction
workers who are onsite by 7:00 a.m., and other working
parents who work outside the once traditional 9 to 5. Many
providers already operate on razor-thin margins, working long
hours, overseeing staff and making personal financial
sacrifices, like delaying their own pay, to keep their doors
open and meet payroll. Constant funding disruptions to
childcare will force many providers to reduce services or
close altogether. They deserve better and more timely pay
rather than additional delays and uncertainty. This vital
component of our workforce needs certainty and steady funding
to provide the care needed for America's working families.
Earlier this year, the Trump administration, abruptly and
without justification, illegally withheld funding for more
than 300,000 children in more than 44,000 childcare programs
in five states funded by the Child Care and Development Block
Grant (CCDBG). Another 200,000 children who do not receive
childcare assistance but rely on programs that do, may have
also been affected. Unions and other allies swiftly
challenged these actions in court. Multiple courts ordered
the administration to reverse course. Now, H.R. 7726 would
amend current law to allow these politically motivated,
baseless and deeply harmful funding freezes to resume.
CCDBG is a critically important program for infants and
toddlers, preschoolers, school-aged children, and a crucial
workforce support. Reliable, consistent childcare funding
from the federal government is essential to ensure that
parents can work while their children are wellcared for and
gain critical skills for continued education and success.
CCDBG also supports school-aged children in before and after
care. Further, childcare programs, both centers and family
childcare, need the assurance of stable, consistent funding
so that their work can continue.
CCDBG has enjoyed bipartisan support with champions from
both parties because the investments pay off and the program
is run well. CCDBG is one of the most closely monitored human
services programs with states required to submit detailed
plans to the federal government, track eligibility, conduct
regular provider inspections and report spending to the
federal government. The most recent report from the
Administration for Children and Families' Office of Child
Care's National Center on Subsidy Innovation and
Accountability showed that CCDBG had lower rates of improper
payments than other programs. As a reminder, improper
payments include errors that cannot be solely classified as
fraud, such as inadvertent error.
H.R. 7726 further empowers the administration in its
attempts to weaponize the distribution of congressionally
appropriated funds. Instead, Congress should ensure that
enacted funding is distributed lawfully and without delays
due to political motivations. We urge you to oppose H.R. 7726
and focus on ways to make childcare more affordable for
millions of working families.
Sincerely,
Elizabeth S. Watson,
American Federation of State, County and Municipal
Employees (AFSCME).
Kristor Cowan,
American Federation of Teachers (AFT).
John Gray,
Service Employees International Union (SEIU).

Mr. SCOTT of Virginia. Mr. Speaker, I yield 3 minutes to the
gentlewoman from Georgia (Mrs. McBath.)
Mrs. McBATH. Mr. Speaker, I thank the ranking member of the Education
and Workforce Committee for yielding.
Stealing from those who need it most is especially egregious, and I
can agree with my colleagues on that. But I can't agree with allowing
them to punish those that have been defrauded for a second time because
that is what this bill really does. It has the same impact on people as
fraud.
At the end of the day, the families who these dollars are really
meant for, they are not going to get them. They are not going to get
the dollars that they need. Instead, the money will have gone to
thieves or to nobody at all.
The outcome is just the same. The people who have the least are
always the ones who pay the price. In Psalms, since so many profess to
be Christians here, the Lord says that because the poor are plundered,
that because the greedy groan, He will rise. But God cannot take action
on his own. He has given us free will. It is through our

[[Page H3800]]

hands that his vision for a just world becomes truth. Instead of rising
to help the plundered, to help the poor, this only plunders them for a
second time.
This is clearly more about giving the Trump administration more power
to punish their political enemies than it is about preventing fraud.
Instead of following the law, allowing the process to play out, this
bill gives the Secretary personal discretion to investigate and punish
fraud.
This President and his allies stop at nothing to punish people who
disagree with them. This administration has not hesitated to not only
kill people for speaking out and protesting against the government but
to slander their memory after they are gone.
They will tell lies about you and your family to the entire country
to justify the unjustifiable, just like they did about Renee Good and
Alex Pretti.
When my son Jordan was killed in a shooting, the same man who pulled
the trigger tried to justify it by lying about who my son really was.
He said that there was a gun in the car when there wasn't; that Jordan
was a thug, and he wasn't; that my son and his friends were doing
things that they really weren't doing.
I thank God every single day that those lies never caught on, but I
remember how insulting that was. I remember thinking: You took my child
from me, and now you are going to lie about who he really was just to
try to get away with it?
The Trump administration has proven that they cannot be trusted to do
the right thing on their own--
The SPEAKER pro tempore (Mr. Fulcher). The time of the gentlewoman
has expired.
Mr. SCOTT of Virginia. Mr. Speaker, I yield an additional 1 minute to
the gentlewoman from Georgia.
Mrs. McBATH.--or even do something as basic as telling the truth.
This bill makes it easier for this administration to make unilateral
decisions at a time when Americans want accountability. I encourage my
colleagues to oppose this bill.
Mr. WALBERG. Mr. Speaker, I yield 2 minutes to the gentleman from
Wisconsin (Mr. Grothman), a great member of our committee.
Mr. GROTHMAN. Mr. Speaker, I rise in support of H.R. 7726, the Stop
Child Care Scams Act.
One of the provisions in this bill is the Combating Regulatory Abuse,
Closing Known Deficiencies, and Overseeing Waste Nationwide Act, or the
CRACKDOWN Act, of which I am the author.
The bill is about a simple principle: Taxpayer dollars that help
working families afford childcare should not be lost to waste, fraud,
or abuse.
It is not surprising, by the way, the Child Care and Development
Block Grant was subject to abuse. It is one of these programs that the
Federal Government pays for and the State governments administer--an
invitation to abuse.
In any event, the Child Care and Development Block Grant helps low-
income families access childcare so parents can work, pursue training,
and provide for their children. When the improper payment rates rise
too high, it is a warning sign that stronger oversight is needed.
Under current law, States generally do not face corrective action
requirements until improper payments exceed 10 percent. That is way too
high.
The CRACKDOWN Act would lower the threshold from 10 percent to 5
percent. If the State exceeds that level, we must take corrective
action to improve program integrity.
The national improper payment rate is already about 4.9 percent, and
38 States already meet the 5 percent threshold established in the bill.
Wisconsin is a State that learned this lesson the hard way. In 2010,
our State faced widespread fraud in its childcare program. Wisconsin
responded by strengthening background checks, creating a dedicated
fraud unit, and expanding audits. Today, Wisconsin's improper payment
rate is below 1 percent. So it can be done. There is no excuse for
being over 1 percent, but because we are easygoing, we are going to
require that it is under 5 percent.
Waiting until a State reaches 10 percent before requiring corrective
action allows problems to grow before they are addressed.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. WALBERG. Mr. Speaker, I yield an additional 15 seconds to the
gentleman from Wisconsin.
Mr. GROTHMAN. Mr. Speaker, waiting until a State reaches 10 percent
before requiring corrective action allows problems to grow before they
are addressed.
Every dollar lost to improper payments is a dollar that cannot help a
working parent. It also is a dollar taken from taxpayers.
H.R. 7726 protects families, protects taxpayers, and strengthens
confidence in the program. I urge my colleagues to support this bill.
Mr. SCOTT of Virginia. Mr. Speaker, I yield 2 minutes to the
gentlewoman from California (Ms. Chu).
Ms. CHU. Mr. Speaker, I rise in strong opposition to H.R. 7726, the
Stop Child Care Scams Act.
As families across the country struggle with the high cost of
childcare, Republicans are advancing legislation that would make it
easier for the Trump administration to withhold funding that helps
working people afford childcare and helps providers keep their doors
open.
Why? To give President Trump more authority to target States he
disagrees with politically under the guise of combating fraud.
We already know exactly how this administration uses this kind of
authority. Earlier this year, it implemented its nationwide Defend the
Spend policy requiring States to submit a slew of new data to access
childcare funding Congress already appropriated.

{time} 1500

States were never required by law to provide this information.
As a result, several States have reported being unable to access
funding, and the administration refuses to answer basic questions about
how this policy works, who reviews the information submitted by States,
and how that data is used. This lack of transparency should alarm every
Member of this Chamber.
The administration claims this is necessary to combat widespread
fraud in our childcare programs, but it has failed to produce any
evidence whatsoever. That tells us everything we need to know. This was
never about fraud. It is about President Trump's petty political
vendetta against blue States.
I submitted an amendment that would have delayed implementation of
H.R. 7726 until the administration finally provides transparency into
its defend the spend policy, but Republicans refused to allow a vote.
Until we get answers, we should not be expanding President Trump's
ability to interfere with childcare funding that families depend on.
Mr. WALBERG. Mr. Speaker, I yield 2 minutes to the gentleman from
Utah (Mr. Owens), the sponsor of one of the bills in this package, in
fact, one of the bills that the Democrats voted with us unanimously.
Mr. OWENS. Mr. Speaker, every cent of taxpayer money should be
treated as sacred. It comes directly out of the pockets of hardworking
Americans. That is why no amount of fraud in Federal public assistance
programs is acceptable. The Government Accountability Office, GAO,
recently estimated that the Federal Government loses between $233
billion and $521 billion every year to fraud, based on data from 2018
through 2022.
When the government spends the American people's money, Americans
should have confidence that their Federal taxpayer dollars are being
used responsibly and carefully.
Recent reporting has revealed shocking degrees of waste, fraud, and
abuse in Minnesota's Federal childcare assistance program. According to
U.S. Department of Health and Human Services, HHS, data, the rate of
improper payments in Minnesota's Federal childcare assistance program
is nearly twice the national average.
In May 2025, an HHS audit of Minnesota's Federal childcare program
found repeated failures to verify attendance and comply with payment
requirements.
However, the problem is not limited to Minnesota. Since 2002, the
Child Care and Development Block Grant, CCDBG, has been identified as a
Federal program at risk for improper payments. The Office of Management
and Budget and HHS have all consistently

[[Page H3801]]

warned that changes are needed to protect the program from waste,
fraud, and abuse.
I am proud that this legislation includes my Closing the Provider
Fraud Gap Act, which commissions GAO to conduct a study on existing
Federal fraud prevention measures in early childhood programs and then
report on recommendations to improve fraud prevention.
The Stop Child Care Scam Act is a reasonable and commonsense solution
to protect Federal taxpayer dollars from being defrauded.
Mr. Speaker, I urge my colleagues to vote ``yes.''
Mr. SCOTT of Virginia. Mr. Speaker, I include in the Record a letter
from the Child Care for Every Family Network.

The Child Care for Every Family,

June 1, 2026.
Dear Members of Congress: We, the undersigned
organizations, led by the Child Care for Every Family Network
with the support of the National Association for the
Education of Young Children, National Women's Law Center, the
Center for Law and Social Policy, and the National
Association of Family Child Care, strongly urge you to reject
a package of child care bills--or the ``Stop Child Care Scams
Act of 2026''--amending the Child Care and Development Block
Grant Act (CCDBG) and the Child and Adult Care Food Program
(CACFP).
These bills give the U.S. Department of Health and Human
Services unprecedented authority to withhold all Child Care
and Development Fund (CCDF) funding from states without cause
or due process, bar child care providers for non-fraudulent
activity, and burden states with costly activities that don't
improve program integrity. There is no evidence of
significant or widespread fraud in the federal child care
program. These bills will be detrimental to child care access
as they will result in fewer families receiving child care
assistance from CCDF, fewer child care providers willing to
serve families with child care subsidies, and further
destabilize America's child care sector, which is already
stretched too thin. The latest annual survey report from the
National Association for Family Child Care reveals an
unsustainable situation: 35 percent reported earning less
than $10 an hour despite 71 percent working 50 or more hours
per week, and 48 percent reported working 60 or more hours
per week. A recent survey of providers by the National
Association for the Education of Young Children makes clear
that insufficient public investment threatens parents'
ability to afford and access child care.
In short, these bills deny support to children and families
while doing absolutely nothing to strengthen our child care
system or help the millions of families that are struggling
to find and afford the child care they need. Lawmakers must
reject this effort that will destabilize our child care
system and harm the families that rely on it.
The House of Representatives will soon consider legislation
that ignores the real child care crisis and create a
constellation of policies that exacerbate this crisis,
undermining and weakening our current system and doing
nothing to help the millions of families that urgently need
help affording child care. We urge lawmakers to reject the
``Stop Child Care Scams Act of 2026,'' which includes the
following bills:
H.R. 7720 Child Care Payment Integrity and Fraud
Accountability Act: This bill treats all states as high-risk
by annual error rate reviews instead of every three years,
despite no evidence of significant or widespread fraud in the
CCDF program. These time-consuming, burdensome, and costly
reviews will mean states have less funding for child care
assistance, while doing nothing to reduce fraud.
H.R. 7721 Combating Regulatory Abuse, Closing Known
Deficiencies, and Overseeing Waste Nationwide Act (CRACKDOWN
Act): This bill would give the U.S. Department of Health and
Human Services (HHS) new power to freeze 100 percent of a
state's child care funds for state administrative errors.
Uses an arbitrary, low-risk threshold standard that isn't
about fraud and eliminates state due process. This doesn't
reduce fraud and would needlessly punish thousands of
families who rely on federal child care assistance and
destabilize a state's child care sector.
H.R. 7723 Safeguarding Taxpayer Dollars in Child Care Act:
This bill requires HHS and USDA to penalize providers
unfairly, including permanently barring child care providers
from receiving federal child care funds and participation in
the Child and Adult Care Food Program (CACFP). This puts
providers who haven't committed fraud at risk of losing their
business and could make them less willing to serve families
with CCDF subsidies. This could have a chilling effect on
providers serving families with subsidies, making it harder
for these families to find the care they need. It also means
that more child care programs could close altogether and more
families--including those who don't use subsidies--will have
a harder time finding and affording child care.
Regarding CACFP, the bill would further undermine the
existing and deeply flawed Serious Deficiency (SD) process to
trigger disbarment from the entire program. CACFP ensures
that the participating child care centers, family child care
homes, Head Start programs, afterschool programs, and
emergency shelters serve healthy meals and snacks. States
currently administer CACFP with strong oversight systems
created by USDA, designed to detect and prevent integrity
concerns. SD is inconsistently applied and often triggered by
minor errors--not fraud or misconduct--and should not result
in termination from either CACFP or CCDF.
H.R. 7726 No Funds for Repeat Child Care Violations Act:
This bill would require HHS to permanently bar child care
providers from receiving federal funds for non-fraudulent
actions, such as incomplete paperwork, like missing
signatures. This puts providers who haven't committed fraud
at risk of losing their business if they serve families
paying with CCDF subsidies. It could have a chilling effect
on providers serving families with subsidies, making it
harder for those families to find the care they need. It also
means that more child care programs could close altogether,
and more families including those who don't pay with
subsidies--will have a harder time finding and affording
child care.
H.R. 7724 No Waivers for Fraud Act: This bill would
eliminate HHS's ability to waive a sanction it has placed on
a state. This flexibility is rarely, if ever, used but would
be important to preserve for instances of capricious
sanctioning of states without proof of fraud and more
generally for unforeseen situations in which the Secretary
and state agree that withdrawing a sanction is appropriate.
We urge lawmakers to vote NO on any package that includes
these bills and instead focus on the real child care crisis
facing our country.
Signed,

National Organizations

Child Care for Every Family Network
Center for Law and Social Policy
National Association for Family Child Care
National Women's Law Center
MomsRising
National Association for the Education of Young Children
(NAEYC)
All Our Kin
American Federation of State, County and Municipal
Employees (AFSCME)
Americans for Democratic Action (ADA)
AP-OD
Care in Action
Caring Across Generations
Catholic Charities
Children's Defense Fund
Children's Funding Project
Children's HealthWatch
Coalition on Human Needs Congregation of Our Lady of
Charity of the Good Shepherd, U.S. Region
Division for Early Childhood of the Council for Exceptional
Children (DEC)
Early Learning Policy Group
Equal Rights Advocates
Family Centered Treatment Foundation
Family Values @ Work
First Focus Campaign for Children
Food Research & Action Center (FRAC)
Head Start Child & Family Development Centers, Inc.
Home Grown
Indigenous Visioning
Institute for Women's Policy Research
Integrated Community Solutions, Inc
Justice + Joy National Collaborative
League of United Latin American Citizens (LULAC)
LEGAL VOICE
Local Initiatives Support Corporation (LISC)
National Advocacy Center of the Sisters of the Good
Shepherd
National Association of Counsel for Children
National Association of Social Workers (NASW)
National Black Child Development Institute
National Child Care Association
National Domestic Workers Alliance
National Indian Child Care Association
National Organization for Women
National Respite Coalition
National Women's Political Caucus
People Power United
Poder Latinx
Public Advocacy for Kids (PAK)
Public Citizen
ResourceFull Consulting
Service Employees International Union (SEIU)
TOOTRiS
UMOS
Voices for Progress
Vote Mama Lobby
ZERO TO THREE

State and Local Organizations

Alabama

Alabama Institute for Social Justice

Alaska

Alaska Children's Trust
Southeast Childhood Collective
All Alaska Pediatric Partnership (A2P2)

Arizona

Children's Action Alliance
Southwest Human Development

Arkansas

Arkansas Advocates for Children and Families

California

California Association for the Education of Young Children
(CAAEYC)
California Child Care Resource & Referral Network

[[Page H3802]]

Black Californians Unite for Early Care and Education
Child Care Law Center
Early Edge California
The Children's Partnership
CAPMC
California Commission on the Status of Women & Girls
Black Californians United for Early Care and Education
Parent Voices CA
Bay Area Professional Family Child Care Network
CommUnify
Options for Learning
Modoc County Office of Education/Early Head Start

Colorado

Colorado Association for the Education of Young Children
(COAEYC)
The Colorado Children's Campaign

Connecticut

Connecticut Voices for Children

Delaware

Delaware Association for the Education of Young Children

District of Columbia

DC Action
DCAEYC
SPACEs in Action
DC Fiscal Policy Institute

Florida

Florida National Organization for Women
Florida Head Start Association

Georgia

Georgia Statewide Afterschool Network
Voices for Georgia's Children
Helping Mamas
Black Child Development Institute (BCDI)--Atlanta
Georgia Child Care Association
Tri-County Family Connection
Easter Seals North Georgia, Inc.

Hawai`i

PATCH
Hawai`i Children's Action Network Speaks!

Idaho

Idaho Head Start Association

Illinois

COFI-POWER-PAC IL
Illinois Head Start Association
SEIU Healthcare Illinois Indiana Missouri Kansas
Indivisible Chicago Northwest

Indiana

Indiana Head Start Association

Iowa

Iowa Association for the Education of Young Children

Kansas

Futures First

Kentucky

Prichard Committee for Academic Excellence

Louisiana

For Providers By Providers (4PXP)
Child Care Association of Louisiana

Maine

Maine People's Alliance
Maine Immigrants' Rights Coalition
Maine Association for the Education of Young Children
(MaineAEYC)
Family Child Care Association of Maine

Maryland

Maryland Family Network
Latino Child Care Association of Maryland, Inc.

Massachusetts

Massachusetts Head Start Association
Community Labor United Inc.
Strategies for Children
Neighborhood Villages

Michigan

Michjgan League for Public Policy
Michigan AEYC

Minnesota

All Nations Rise
Gender Justice
Chamber of Mothers Minnesota Chapter
Metropolitan Interfaith Council on Affordable Housing
(MICAH)

Mississippi

Mississippi Low Income Child Care Initiative

Missouri

WEPOWER
Missouri Association for the Education of Young Children
Rhizome: Early Childhood Strategy & Policy Solutions
Missouri Head Start Association
Empower Missouri
Region VII Head Start Association
Douglass Community Services

Montana

Montana Advocates for Children
Healthy Mothers, Healthy Babies--The Montana Coalition
Montana Association for the Education of Young Children
Zero to Five Montana
Montana Budget & Policy Center

Nebraska

IBBG
Nebraska Association for the Education of Young Children,
Inc.

Nevada

Children's Advocacy Alliance

New Hampshire

Kids First Consulting

New Jersey

NJ Communities United
New Jersey Citizen Action
Advocates for Children of New Jersey
Laundry Workers Center
NJ Association for the Education of Young Children
New Jersey Institute for Social Justice
CWA Local 1037

New Mexico

OLE Education Fund
New Mexico Early Childhood Association

New York

Alliance for Quality Education
The Children's Agenda
NY Association for the Education of Young Children
Diverse Mosaic Community Center
Children's Defense Fund--New York
Citizen Action of New York
Early Care & Learning Council
Western New York Child Care Action Team

North Carolina

Education Justice Alliance

North Dakota

North Dakota KIDS COUNT

Ohio

Ohio Association for the Education of Young Children
Southwest Ohio Association for the Education of Young
Children
Ohio Organizing Collaborative
Chosen Kids
Columbus Early Learning Centers
Early Care and Learning, Inc.

Oklahoma

Oklahoma Association for the Education of Young Children
Oklahoma Child Care Association

Oregon

For All Families
Children's Institute

Pennsylvania

Pennsylvania Head Start Association
Children First (PA)
Pennsylvania Association for the Education of Young
Children
Pennsylvania Partnerships for Children
Pennsylvania Child Care Association
New Voices for Reproductive Justice
First Up

Rhode Island

RI Association for the Education of Young Children
Rhode Island KIDS COUNT

South Carolina

South Carolina Program for Infant/Toddler Care
Institute for Child Success

South Dakota

South Dakota KIDS COUNT

Tennessee

Nashville Area Association for the Education of Young
Children

Texas

CHILDREN AT RISK
Texans Care for Children
Children's Defense Fund--Texas
Austin/Travis County Success by 6

Utah

Utah Association for the Education of Young Children
Voices for Utah Children
Utah Private Child Care Association

Vermont

Vermont Early Childhood Advocacy Alliance
Building Bright Futures, Vermont's Early Childhood State
Advisory Council
Vermont Association for the Education of Young Children

Virginia

Virginia Head Start Association
Virginia Organizing

Washington

Children's Campaign Fund
Washington State Association of Head Start and ECEAP
Akin

West Virginia

West Virginia Head Start Association, Inc.

Wisconsin

Wisconsin Coalition Against Sexual Assault
Wisconsin Head Start Association
Wisconsin Early Childhood Association

Wyoming

Wyoming Community Foundation

Mr. SCOTT of Virginia. The letter says in part: ``These bills give
the U.S. Department of Health and Human Services unprecedented
authority to withhold all Child Care and Development Fund (CCDF)
funding from States without cause or due process, bar child care
providers for non-fraudulent activity, and burden States with costly
activities that don't improve program integrity.''
Mr. Speaker, I reserve the balance of my time.
Mr. WALBERG. Mr. Speaker, I yield 2 minutes to the gentleman from
Ohio (Mr. Rulli), who is the sponsor of another one of the bills in the
package that my Democrat colleagues voted for unanimously with us.

[[Page H3803]]

Mr. RULLI. Mr. Speaker, I thank Chairman Walberg for yielding.
Mr. Speaker, I am proud to stand in support of H.R. 7726, the Stop
Child Care Scams Act of 2026. I am honored to see my bill added into
this package today.
We are here talking about commonsense legislation to just stop fraud.
The Government Accountability Office estimates that the Federal
Government loses between $200 billion and $500 billion every year to
fraud.
This bill makes sure fraudsters are stopped by adding commonsense
requirements like agency coordination and data sharing to monitor
fraud, explaining the processes used to investigate and recover
improper payments, and highlighting the procedures used to impose
sanctions when fraud is actually found.
Mr. Speaker, I urge my colleagues today to support this bill,
strengthen integrity, and safeguard taxpayer dollars in the childcare
block grant program.
Mr. SCOTT of Virginia. Mr. Speaker, I yield 3 minutes to the
gentleman from Virginia (Mr. Subramanyam).
Mr. SUBRAMANYAM. Mr. Speaker, I thank the ranking member for
yielding.
H.R. 7726 is supposedly intended to address fraud in childcare
programs, but all it actually does is give the administration more
power to withhold childcare funding as political retribution.
This is happening particularly at a time when the cost of childcare
is skyrocketing. I am so glad we are talking about fraud because this
is an administration that has embraced waste, fraud, and abuse.
This is a President who tried to steal taxpayer money by suing his
own government and then set up a $1.8 billion slush fund for his
friends and allies, and his family has made billions from pay-to-play
business deals all around the world.
That is not all, because he has used his pardon power to pardon
fraudsters left and right, including white-collar criminals convicted
of money laundering; corrupt politicians who stole millions in public
funds and even trafficked drugs; and even insurrectionists, including
one who was later charged with child sex abuse and molestation.
These pardons have wiped out over $1.5 billion in compensation owed
to actual crime victims. The administration has made sure there is no
one left to investigate this fraud because the Department of Justice
office in charge of investigating corruption used to have 40 attorneys
in it, and now it has 2.
That is why, at the appropriate time, I will offer a motion to
recommit this bill back to committee.
If the House rules had permitted, I would have offered the motion
with an important amendment to this bill. My amendment would prevent
the bill from taking effect until the Department of Justice provides a
list of all the individuals pardoned by the President of the United
States who were convicted for committing fraud.
Mr. Speaker, I ask unanimous consent to insert the text of my
amendment into the Record immediately prior to the vote on the motion
to recommit.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Virginia?
There was no objection.
Mr. SUBRAMANYAN. I hope my colleagues on both sides of the aisle will
show their commitment to actually addressing fraud by joining me in
voting for the motion to recommit.
The SPEAKER pro tempore. Members are reminded to refrain from
engaging in personalities toward the President.
Mr. WALBERG. Mr. Speaker, now I will get back on the germane issues
that we are dealing with with this legislation and not rabid statements
without foundation.
Mr. Speaker, I yield 2 minutes to the gentleman from Missouri (Mr.
Onder), who is a great member of our committee.
Mr. ONDER. Mr. Speaker, I thank Chairman Walberg for yielding.
Mr. Speaker, I rise in strong support of H.R. 7726, the Stop Child
Care Scams Act. This package will punish bad actors who steal taxpayer
dollars from low-income families who need childcare resources the most.
While fraud and theft may be a time-honored tradition in Somalia,
defrauding American taxpayers has consequences. When Nick Shirley blew
the lid on the pervasive childcare fraud in Minnesota's Somali
community, the infamous Quality Learing Center was forced to shut down.
The Somali mastermind of the Feeding Our Future scheme was charged with
wire fraud and conspiracy to defraud the United States, and Governor
Tim Walz was forced to drop his reelection bid.
House Republicans are restoring integrity to the Child Care and
Development Block Grant program which serves about 10 percent of all
children in the childcare system. Any waste, fraud, and abuse is an
attack on working families and must be rooted out. This legislation
will greatly improve oversight of Federal childcare program
expenditures and hold fraudsters accountable.
I appreciate the chairman including legislation I introduced, the
Child Care Integrity Monitoring Act, in this bill. My bill will restore
public trust in the childcare system by codifying HHS' 3-year audit
cycle of expenditures, which the Department has been required to do
since 2007.
My bill also gives HHS the power to designate States as high risk if
they fail their audit, neglect to carry out a corrective action plan,
or become noncompliant with their own State plan.
House Republicans will never stop fighting waste, fraud, and abuse
because we will not tolerate benefits being stolen from working
families. By ensuring that Federal childcare dollars are spent wisely,
the Stop Child Care Scams Act of 2026 will improve the quality of life
for countless working moms and dads and their children.
Mr. Speaker, I encourage all Members to support this legislation.
Mr. SCOTT of Virginia. Mr. Speaker, I include in the Record a link to
an article printed in the MinnPost, the headline of which says:
``Here's what's really happening with childcare fraud in Minnesota.
Evidence is nowhere near the epidemic levels a viral YouTube video
would suggest--but it hasn't stopped a crackdown on child care funding.
Here's the fact check.'' https://www.minnpost.com/state-government/
2026/01/heres-whats-really-happening-with-child-care-fraud-in-
minnesota-explained/?gad_source=1&gad
_campaignid=9109082086.
Mr. Speaker, I reserve the balance of my time.

{time} 1510

Mr. WALBERG. Mr. Speaker, I yield 2 minutes to the gentleman from
Indiana (Mr. Messmer), a sponsor of one of the bills in this package
and a great member of the committee.
Mr. MESSMER. Mr. Speaker, I rise today in strong support of the Stop
Child Care Scams Act, which provides a commonsense path toward
preventing the rampant waste, fraud, and abuse in our Federal childcare
support programs.
Every year, nearly 2 million children receive State and Federal Child
Care and Development Block Grant subsidies totaling over $8 billion.
These childcare assistance programs allow lower income parents to stay
in the workforce so they can create their own economic independence and
contribute to the economic development in their communities.
Under the current program requirements, States are supposed to submit
a report detailing any errors that are discovered in the administration
of the CCDBG grant fund distributions.
Mistakes are not unusual given the changing nature of childcare, but
because there is no penalty, the reporting of fraudulent payments is
often ignored.
That is why I am pleased that my Child Care Payment Integrity and
Fraud Accountability Act is included in today's bill. It requires that
States clearly account for any improper payments that have been made so
that Americans can see exactly how their money is being spent and
leaders can manage what improvements are needed to best safeguard
taxpayer dollars.
Preventing fraud and protecting our citizens' hard-earned money is
one of the most important things we should be doing in Congress.
Americans deserve an end to the waste, fraud, and abuse poisoning our
country. I urge my colleagues to support this bill.
Mr. SCOTT of Virginia. Mr. Speaker, I include in the Record a letter
from

[[Page H3804]]

Child Care Aware of America that says, in part, ``several provisions in
the bill would duplicate existing requirements, create unclear
mandates, and ultimately undermine families' access to childcare'' and
that the bill ``would impose new sanctions, restrict flexibility, and
potentially reduce childcare funding to States.''

ChildCare Aware of America,

June 2, 2026.
Dear Representative: We write to share concerns about the
Stop Child Care Scams Act of 2026 (H.R. 7726) that previously
advanced out of the House Education and Workforce Committee
as a package of eight bills. Child Care Aware of America
(CCAoA) supports swift and thorough action when credible
allegations of fraud arise. But any effort to strengthen
current safeguards should do so without causing economic harm
to families, communitIes, or the child care system.
Unfortunately, several provisions in the bill would duplicate
existing requirements, create unclear mandates, and
ultimately undermine families' access to child care. At a
time when child care prices remain extremely high for
families, additional administration burden and cost may cause
providers to reduce enrollment, withdraw from subsidy
programs, or close altogether, further straining access for
families who need care. We urge you to vote no on the Stop
Child Care Scams Act of 2026 (H.R. 7726).
There are already robust program integrity processes in
place within the Child Care and Development Block Grant
(CCDBG), with dearly defined roles for both federal and state
agencies. Federal law and regulation require states to
conduct eligibility verification, establish monitoring and
enforcement procedures, review payments, investigate
suspected fraud, and implement corrective action plans where
needed. States must submit detailed plans outlining program
integrity strategies, and they are subject to federal
oversight. In addition, states already report extensive data
on payment accuracy and program integrity. Under federal
regulation, states must report the error rate, the percentage
of cases with an improper payment, the percentage of improper
payments, the average amount of improper payment, and the
estimated annual amount of improper payments (45 CFR
98.100(b)). States are also required to outline procedures to
investigate and recover fraudulent payments, which are
different than improper payments or errors, and to impose
sanctions on clients or providers in response to fraud. The
U.S. Department of Health and Human Services has clear
oversight authority, including reviewing state compliance,
requiring corrective actions, and imposing penalties when
necessary.
The Stop Child Care Scams Act of 2026 (H.R. 7726) would
impose new sanctions, restrict flexibility, and potentially
reduce child care funding to states. While accountability is
important, reducing funding limits states' ability to operate
the child care subsidy systems that millions of families rely
on. These resources support access to child care, workforce
stability, and the state administrative capacity needed to
maintain strong program oversight. Excessive sanctions and
rigid penalties may discourage child care providers from
participating in the subsidy system, or related programs such
as the Child and Adult Care Food Program (CACFP). The result
could be a smaller supply of child care for families.
The bill's administrative requirements would also be costly
to implement. Expanded reporting, monitoring, technology
upgrades, and compliance obligations require significant
staff time and system changes. Because these expenses are
typically covered by Child Care and Development Fund (CCDF)
dollars, increased administrative costs leave fewer resources
available for direct services. As a result, states may need
to serve fewer children, adjust reimbursement rates for child
care providers, or scale back quality initiatives. Increased
compliance risk and reduced flexibility may further
accelerate program closures, making it harder for families to
access care.
Our concerns apply to several of the sections of the Stop
Child Care Scams Act of 2026. Section 5, Improper Payment
Rate Requiring Corrective Action Plan; Conditional
Ineligibility, and Section 10, Fraudulent Payments, focus on
reducing improper payments without making a necessary
distinction between administrative errors and intentional
fraud. That conflation requires states to adopt overly
restrictive payment practices that destabilize child care
provider operations, particularly for small businesses
operating on thin margins. Section IO, Fraudulent Payments,
would add new reporting and compliance requirements that
increase administrative costs and divert funds from direct
services for families and children. Section 6, Cyclical
Monitoring of State Performance, duplicates existing federal
monitoring and review requirements. Section 2, Strengthening
the Authority to Withhold Funds for Fraud, imposes funding
penalties that ultimately reduce resources available to serve
families. Similarly, Section 4, Preventing Fraud in the Child
Care and Development Block Grant Program, would limit
flexibility that states currently use to manage complex
program operations, potentially reducing child care supply.
CCAoA supports thoughtful, targeted efforts to strengthen
program integrity and prevent fraud. However, these efforts
should build on existing systems, preserve clarity in federal
and state roles, distinguish administrative errors and
improper payments from fraud, and most importantly not punish
children and families by destabilizing or defunding the child
care system. As a result, we urge the Representative to
oppose the Stop Child Care Scams Act of 2026 (H.R. 7726). We
welcome the opportunity to work with you on balanced
solutions that ensure families maintain access to safe,
affordable child care.
Sincerely,

Susan Gale Perry,

Chief Executive Officer,
Child Care Aware of America.

Mr. SCOTT of Virginia. Mr. Speaker, I reserve the balance of my time.
Mr. WALBERG. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Utah (Mr. Kennedy).
Mr. KENNEDY of Utah. Mr. Speaker, I rise today in strong support of
H.R. 7726, the Stop Child Care Scams Act of 2026.
Before I came to Congress, I spent my career as a physician in Utah
caring for working families. In medicine, you learn to diagnose the
root cause of an illness. If a treatment isn't working, you don't
double down on a failing protocol. You do the obvious. You should
change the treatment.
Unfortunately, Washington has a habit of ignoring the symptoms of our
own broken system. While our Federal childcare programs serve a useful
purpose, they are being systematically ruined by rampant fraud. We must
be clear about who truly suffers when we allow this corruption to go
unchecked.
Fraudsters who exploit these programs are stealing directly from the
children and families who rely on these resources. This is a moral
failure that should transcend party lines. Securing our Federal
programs against fraud is Congress' job, and it shouldn't take
committed citizens like Utah's own Nick Shirley to uncover these
problems.
As the sponsor of the Stop Child Care Funding Fraud Act, I am glad to
see similar policies reflected in this bill.
Mr. Speaker, today, we can protect the taxpayer, excise the rot of
corruption, and make certain that every Federal dollar intended for
America's children actually reaches them. Rooting out waste, fraud, and
abuse should be every Member's priority for these people in this
Chamber, and I urge my colleagues to support this bill.
Mr. SCOTT of Virginia. Mr. Speaker, I reserve the balance of my time.
Mr. WALBERG. Mr. Speaker, I yield 2 minutes to the gentleman from
Minnesota (Mr. Stauber).
Mr. STAUBER. Mr. Speaker, I rise today in support of H.R. 7726, the
Stop Child Care Scams Act.
This legislation is about something every American should agree on:
Childcare assistance should go to children and families who need help,
not to criminals and fraudsters who exploit the system for personal
gain.
A GAO report found that $325 million in improper childcare payments
were made in a single year, enough to fund the childcare programs of
nearly one-third of the States in this country. That is money that
should have been helping working families, not lost to waste, fraud,
and abuse.
In my home State of Minnesota, taxpayers have watched massive fraud
schemes unfold in childcare programs under the failed leadership of
Governor Tim Walz. Thanks to State officials' repeated failure to
provide the oversight necessary to protect programs intended to serve
vulnerable children and families, Minnesota taxpayers were scammed out
of hundreds of millions, if not billions, of dollars. These failures
undermined public trust and diverted resources away from those who
truly needed them.
That is why I introduced the Stop Fraud by SOMALIA Act. My bill was
designed to strengthen accountability, protect taxpayer dollars, and
ensure that bad actors can no longer exploit childcare programs at
taxpayer expense.
I am pleased to see that several provisions for my legislation are
included in H.R. 7726. This bill permanently bars fraudulent childcare
providers from receiving Federal funds, strengthens Federal oversight
and enforcement, and cracks down on providers who falsify records,
submit false information, or misuse taxpayer dollars.
Every dollar lost to fraud is a dollar that cannot be used to help a
working parent afford childcare or support a child who depends on these
services.

[[Page H3805]]

We have a responsibility to ensure these programs operate with
integrity and accountability.
Mr. Speaker, I urge my colleagues to support H.R. 7726 and help
restore trust in these important programs.
Mr. SCOTT of Virginia. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, millions of families rely on safe, stable childcare in
their communities. Unfortunately, the cost of childcare often rivals
the cost of housing. Many communities lack adequate childcare
altogether.
H.R. 7726 fails to meaningfully improve America's broken childcare
system, but it does add unnecessary bureaucratic burdens to States and
providers, many of whom are already struggling.
Fraud must be addressed, but in substance, not by discussing the
merits of the title of the bill. Smart accountability means strong
enforcement paired with practical flexibility. Requiring extra reports
and punishing States and providers for minor, inadvertent mistakes does
not protect children and doesn't even reduce fraud. It does put
programs that families depend on at risk and allows the Trump
administration to weaponize this legislation by withholding funding
from States that didn't vote for him.
I oppose H.R. 7726, which fails to reduce fraud and prioritizes
inflexible mandates over the real-world needs of working families.
Mr. Speaker, I yield back the balance of my time.
Mr. WALBERG. Mr. Speaker, I yield myself the balance of my time.
We have the responsibility to ensure taxpayer dollars are used to
help Americans, not fraudsters and scammers. Mr. Speaker, if you
noticed today, we heard testimony from members of this committee and
off this committee, including a Member we just heard from Minnesota,
the State with a significant problem that alerted us to the fraud,
waste, and abuse that was going on, not simply States or Members that
are going to be so-called targeted by the President.
These are Members who understand what went on and how taxpayer funds
were being abused through fraud.
For too long, criminals have exploited Federal programs, stealing
billions while children and families lose access to critical support.
That must end.
The Stop Child Care Scams Act strengthens oversight, closes
loopholes, and prevents bad actors from continuing their schemes across
multiple programs.
These are straightforward, long-overdue reforms that will make a real
difference. Every dollar lost to fraud is a dollar taken from someone
who truly needs help.
Mr. Speaker, I urge my colleagues to support the Stop Child Care
Scams Act.
Mr. Speaker, I yield back the balance of my time.
Ms. BONAMICI. Mr. Speaker, I rise today in opposition to H.R. 7726,
which will have detrimental effects on child care in the United States.
Fraud at any level is unacceptable, especially if it takes valuable
child care away from families. But the Child Care and Development Fund
already includes strong safeguards to help the program fulfill its core
mission of caring for the Nation's youngest learners while supporting
working families. Although this bill may be aimed at ``addressing
fraud,'' in reality it will leave many families without the child care
assistance they need. The Child Care and Development Fund supports 1.4
million children each month. This bill, which adds onerous oversight
requirements and is overly punitive for states that fail to meet
requirements, will undermine the ability for the program to do what it
is supposed to do--help low-income families afford child care. Any
disruptions in the system--including freezing payments across all
states--have real and immediate consequences. Child care is essential
infrastructure that millions of American families need, and we should
treat it as such. I strongly urge my colleagues, to oppose this
legislation.

{time} 1520

The SPEAKER pro tempore. All time for debate has expired. Pursuant to
House Resolution 1333, the previous question is ordered on the bill, as
amended.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.

Motion to Recommit

Mr. SUBRAMANYAM. Mr. Speaker, I have a motion to recommit at the
desk.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. Subramanyam moves to recommit the bill (H.R. 7726) to
the Committee on Education and Workforce.

The material previously referred to by Mr. Subramanyam is as follows:

Mr. Subramanyam moves to recommit the bill (H.R. 7726) to
the Committee on Education and Workforce with the following
amendment:
At the end of the bill, add the following:

SEC. 11. EFFECTIVE DATE.

This Act, and the amendments made by this Act, shall not
take effect until the Attorney General posts publicly on the
website of the Department of Justice, and submits to the
Congress, an individualized list of all pardons granted by
the President since January 20, 2025, for a crime involving
fraud. Such list shall include the following information with
respect to each listed pardon:
(1) The kind of fraud committed by the person who committed
such crime and the population impacted by such fraud.
(2) The dollar amount and economic effect of such fraud.
(3) The specific Federal program defrauded (if any) by such
person.
The SPEAKER pro tempore. Pursuant to clause 2(b) of rule XIX, the
previous question is ordered on the motion to recommit.
The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Mr. SUBRAMANYAM. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this question will be postponed.

____________________