HR7723-119

What This Bill Does

The Safeguarding Taxpayer Dollars in Child Care Act of 2026 tightens fraud consequences in two child care funding streams. In the Child Care and Development Block Grant program, the Secretary must investigate fraud involving financial assistance. If there is a final determination of fraud against a child care provider that received CCDBG assistance, the Secretary must permanently debar that provider from receiving CCDBG assistance.

The bill also cross-links CACFP fraud findings. A child care provider debarred from the Child and Adult Care Food Program must also be permanently debarred from CCDBG assistance. In CACFP, an institution or family or group day care home whose participation is terminated because of a final fraud determination must be permanently debarred from CACFP. Final fraud includes false statements, misrepresented ownership, enrollment, attendance, services, licensing status, improper expenditures, or other fraudulent conduct under federal or state law after review or appeal rights are exhausted or waived.

Who Benefits and How

Federal taxpayers benefit because providers with final fraud determinations lose future access to CCDBG or CACFP funds. Families using subsidized child care benefit if fraudulent providers are removed from program participation. HHS child care program staff benefit from a clear permanent debarment rule for CCDBG fraud. USDA child nutrition staff benefit from a parallel permanent debarment rule for CACFP fraud. State child care subsidy agencies benefit from clearer federal consequences when a provider is already debarred from CACFP. Honest child care providers benefit when competitors that commit fraud are excluded.

Who Bears the Burden and How

Child care providers with fraud findings face permanent debarment from CCDBG assistance. CACFP institutions with fraud findings face permanent debarment from CACFP. Family day care homes with final fraud determinations lose program participation. HHS child care program staff must investigate fraud and enforce debarments. USDA child nutrition staff must implement CACFP fraud debarment. State child care agencies must update provider eligibility and cross-program screening procedures. Providers accused of fraud must defend administrative or judicial proceedings before final determinations become permanent bars.

Key Provisions

• Requires the Secretary to investigate fraud in CCDBG financial assistance.
• Requires permanent debarment of CCDBG providers with final fraud determinations from CCDBG assistance.
• Requires permanent debarment of providers already debarred from CACFP from CCDBG assistance.
• Requires permanent debarment of CACFP institutions and family day care homes terminated for final fraud determinations.
• Defines final fraud determinations to include false statements, misrepresentation, unlicensed operation, improper expenditures, and other fraud.
• Provides that debarment applies after review or appeal rights are exhausted or waived.