This bill strengthens anti-fraud protections in federal child care assistance programs. States would be required to implement more rigorous eligibility verification, establish stronger internal controls to prevent fraud, investigate suspected scams, annually report improper payments, and recover misused funds. If a state’s improper payment rate exceeds 5% in any fiscal year, it must submit a corrective action plan and show progress; failure to do so for two consecutive years could result in loss of federal funding. Child care providers found guilty of fraud—such as submitting false information—would be permanently barred from federal child care and related food assistance programs.
