HR7726-119

What This Bill Does

The No Funds for Repeat Child Care Violations Act of 2026 makes a targeted change to CCDBG enforcement language. It amends section 658I(b)(2)(B) of the Child Care and Development Block Grant Act by changing "the Secretary may" to "the Secretary shall."

That wording change turns the covered fund-withholding authority from discretionary to mandatory. When the statutory conditions in that provision are met, the Secretary must withhold funds rather than merely having the option to do so. The bill does not create a new grant program or new eligibility class; it strengthens the enforcement consequence for the existing fraud-related withholding provision.

Who Benefits and How

Federal taxpayers benefit because the Secretary must withhold funds when the covered fraud-related condition is met. HHS child care program integrity staff benefit from a mandatory enforcement rule. Families eligible for child care assistance benefit if stronger fund withholding deters repeated violations and protects subsidy dollars. States with compliant child care programs benefit from a clearer enforcement baseline. Congressional oversight staff benefit because agency discretion is reduced for the covered withholding action.

Who Bears the Burden and How

States triggering the covered withholding provision face mandatory loss of funds. State child care agencies must correct violations rather than relying on Secretary discretion. HHS child care program staff must implement the mandatory withholding decision. Child care providers in affected states may face funding disruption if state noncompliance triggers withholding. State budget officials may need to account for withheld federal funds.

Key Provisions

• Amends section 658I(b)(2)(B) from "Secretary may" to "Secretary shall."
• Requires the covered CCDBG fund-withholding action to be mandatory.
• Strengthens enforcement for fraud-related or repeated child care violations.
• Limits agency discretion once the statutory withholding condition is met.