House Passes Bill Targeting Fraud in Federal Child Care Grant Program

House lawmakers passed legislation Wednesday that adds audits, data-sharing rules, and funding cuts for states with repeated violations under the Child Care and Development Block Grant program. The bill cleared the chamber 217-207, with all Republicans and four Democrats in support. It targets improper payments that a 2019 review estimated at $325 million within the $8.83 billion grant.

One section requires the Department of Health and Human Services to audit each state program every three years. The same section directs the department to identify high-risk states and apply extra scrutiny to them. Additional clauses instruct the department to take corrective action on improper payments and bar waivers of sanctions against programs found to have committed fraud.

The measure was prompted by reporting on Minnesota cases that drew attention last year. It also asks the Government Accountability Office to develop further recommendations on reducing improper payments. The bill now heads to the Senate, where Democratic opposition in the House has raised questions about its prospects for becoming law.