CRACKDOWN Act of 2026
Summary
H.R. 7721, the CRACKDOWN Act of 2026, would amend the Child Care and Development Block Grant Act to establish stricter oversight of improper payments in state child care assistance programs. The bill would lower the improper payment threshold from the current 10% to 5%, meaning states would be required to implement corrective action plans if their improper payment rates exceed this new benchmark. Currently, the national improper payment rate is approximately 4.9%, and 38 states already meet the proposed 5% standard. The bill aims to reduce fraud, waste, and abuse in federal child care subsidies by encouraging states to address payment problems before they escalate into larger issues. If enacted, states that exceed the 5% threshold would need to develop and implement plans to improve program integrity and reduce improper payments, similar to reforms Wisconsin implemented in 2010 that brought its improper payment rate below 1%.
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