HR7677-119

What This Bill Does

The Closing the Provider Fraud Gap Act requires the Comptroller General to study fraud-prevention measures in federal early childhood education, child care, and child nutrition programs. The study must examine how effective provider-fraud prevention procedures are, whether federal audit and reporting data are sufficient to identify provider fraud, and whether the federal government uses those data effectively.

The bill specifically requires review of Child Care and Development Block Grant program integrity results in states that delegate program management or administration to counties, municipalities, or other entities. GAO must also look at whether states have corrective action plans to improve program integrity and whether those plans produced measurable outcomes. Within two years, GAO must report results and regulatory or legislative recommendations to the House Education and Workforce Committee and Senate HELP Committee. Covered programs include Head Start, Early Head Start, CACFP, and CCDBG.

Who Benefits and How

Congressional education committees benefit from a GAO report on provider fraud risks and possible statutory or regulatory improvements. HHS early childhood program staff benefit from an outside assessment of Head Start and CCDBG fraud-prevention data. USDA child nutrition staff benefit from review of provider fraud controls in CACFP. State child care agencies benefit from clearer findings on delegated county or municipal administration and corrective action plans. Federal taxpayers benefit if better data and recommendations reduce improper payments. Families using subsidized care benefit if fraud controls protect program funds for eligible services.

Who Bears the Burden and How

GAO analysts must conduct the study and prepare recommendations within two years. HHS early childhood program staff, USDA child nutrition staff, state child care agencies, counties, municipalities, and delegated administrators may need to provide audit, reporting, program integrity, and corrective-action information. Child care providers and child nutrition sponsors face more scrutiny of fraud-prevention procedures. States with weak corrective action outcomes may face congressional attention. Program data staff must document whether federal data are sufficient and effectively used to detect fraud.

Key Provisions

• Requires a GAO study of provider-related fraud prevention in federal early childhood, child care, and child nutrition programs.
• Directs GAO to evaluate audit and reporting data used to identify provider fraud.
• Requires review of CCDBG program integrity where states delegate administration to counties or local entities.
• Requires examination of corrective action plans and measurable outcomes.
• Covers Head Start, Early Head Start, CACFP, and CCDBG.
• Requires a two-year report with regulatory or legislative recommendations.