Child Care Payment Integrity and Fraud Accountability Act of 2026

The Child Care Payment Integrity and Fraud Accountability Act of 2026 proposes to amend the Child Care and Development Block Grant Act of 1990. The bill aims to increase transparency by requiring states to separate fraudulent payments from general administrative errors when reporting on how federal child care funds are spent. Currently, many states group various types of improper payments together, which can obscure the actual amount of money lost to intentional criminal activity.

Under this legislation, states would be required to submit annual reports to the federal government detailing specific dollar amounts and percentages for different categories of improper payments. These categories would include suspected and verified fraud, non-fraudulent overpayments, underpayments, and technical errors caused by system glitches. By creating these distinct categories, the bill seeks to provide federal oversight agencies with clearer data to identify and address systemic weaknesses in the child care subsidy system.

If enacted, the bill would likely require state agencies to update their tracking and auditing systems to meet the new reporting standards. For citizens, the proposal is intended to ensure that taxpayer-funded child care assistance reaches eligible families rather than being diverted by bad actors. While the bill adds new administrative requirements for states, its supporters argue that better data will lead to more effective fraud prevention and more secure funding for working parents who rely on these services.