Senator Ashley Moody introduced the Stop Child Care Scams Act, legislation that would create new program integrity provisions for the Child Care and Development Block Grant. The bill would require the Administration for Children and Families, within the Department of Health and Human Services (HHS), to withhold block grant funds from states that fail to comply with anti-fraud requirements.
“Federal childcare assistance should help working families afford safe and reliable care—not fatten the pockets of fraudsters. As a mom, I know how important it is for parents to trust that these programs are serving children and families, not wasting taxpayer dollars. This bill strengthens oversight, targets waste, mandates consequences for fraud, and ensures these funds go where they are needed most,” said Senator Ashley Moody.
BACKGROUND:
- Specifically, the Stop Child Care Scams Act:
- Establishes new program integrity planning requirements for states.
- Requires the permanent debarment of convicted childcare fraudsters.
- Requires states with improper payment rates above 5% to submit a corrective action plan to HHS.
- Requires a performance review of all block grant programs, where HHS designates high-risk states for additional monitoring.
- Requires HHS to permanently debar convicted fraudsters from the Child and Adult Care Food and Block Grant programs.
- Removes the existing ability of the Administration for Children and Families to waive sanctions against offending states and participants.
- Commissions a study into fraud prevention in childcare and permits HHS to adjust payments to states in response.
- The House version of this bill was introduced by Representative Mary Miller (R-IL-15) and recently passed the House.
- Heritage Action and America First Policy Institute support this legislation.
