Stop Child Care Fraud Act of 2026

H.R. 7725 would amend the Child Care and Development Block Grant Act of 1990 to strengthen oversight of state child care assistance programs. The bill would require states to include new information in their three-year child care plans submitted to the federal government. Specifically, states would need to describe their internal controls designed to prevent fraud, their processes for investigating and recovering fraudulent payments, and the sanctions they impose on providers or families found to have committed fraud. States would also need to explain how they verify the eligibility of families and providers, and how they use data from various state and local agencies to monitor child care providers.

The bill aims to enhance program integrity and accountability in child care assistance funded through federal grants. If enacted, it would formalize requirements that states already report on in their plans but are not currently mandated by statute. The legislation would not directly affect families receiving child care assistance or providers, but would increase the documentation and reporting requirements that states must complete to receive federal child care funding.