No Funds for Repeat Child Care Violations Act of 2026

Floor Speech

Date: June 3, 2026
Location: Washington, DC


Mr. Speaker, I rise in opposition to H.R. 7726 because we know that childcare is not a luxury. It is a necessity for millions of American families. Yet, many communities struggle with skyrocketing childcare costs if they can find any childcare at all. Our economy already loses an estimated $122 billion every year due to childcare shortages, and that is a policy failure.

The bill before us does nothing to reduce childcare costs, increase supply, or improve conditions for providers, and it doesn't even reduce fraud. Instead, it creates uncertainty and red tape for States and providers. While the supporters will be discussing the title of the bill, they are not going to be discussing the substance.

I support efforts to reduce fraud in government programs, but this bill doesn't do that. States are already required to report error rates and undergo compliance reviews of the Child Care and Development Block Grant every 3 years. This bill would require States to triple their reporting obligations, diverting CCDBG dollars away from families by increasing administrative costs. More reporting does not reduce fraud.

H.R. 7726 is also extremely vague. It would allow the Health and Human Services Secretary to designate States as high risk and subject them to additional monitoring without defining what additional monitoring or high risk means, and it provides no additional funding to support these new responsibilities.

Furthermore, it expands situations where the State may be in noncompliance, opening the door for this legislation to be weaponized to withhold funding from an entire State that the Trump administration wants to punish.

The bill also mandates permanent disbarment of providers found guilty of fraud regardless of mitigating circumstances, and it is unclear who gets debarred. Is it the individual who was involved, or could it be the entire franchise operating in multiple States?

In many communities, permanently removing even one provider could leave families without options for childcare. Furthermore, debarment from the childcare program requires debarment from the Child and Adult Care Food Program, so innocent families could lose access to food as well as childcare.

This legislation fails to stop fraud. Instead, it imposes needless red tape and bureaucracy on communities that are already strapped for resources. For that reason, Mr. Speaker, I oppose the bill and reserve the balance of my time.

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Mr. Speaker, I include in the Record a letter from public health and anti-hunger organizations, a couple of dozen of them, that says in part that the provisions of H.R. 7723 which are now in this bill ``would use existing Serious Deficiency process to trigger disbarment, which is problematic because it is a tool that is inconsistently applied and is often triggered by minor errors rather than fraud or misconduct.'' May 18, 2026. Re H.R. 7723 and Its Impact on CACFP Participation

Dear Members of the House of Representatives: We, the undersigned organizations, write to oppose H.R. 7723, Safeguarding Taxpayer Dollars in Child Care Act, which could bar child care providers from participating in the child and Adult Care Food Program (CACFP) and the Child Care and Development Block Grant (CCDBG) for unintentional or inadvertent errors.

CACFP is a federal program that provides reimbursements for nutritious meals and snacks to eligible providers in rural, suburban, and urban areas in communities across the country, and is proven to improve children's health, family economic stability, and child care quality. This program ensures that children in every state have access to healthy meals and snacks at participating child care centers, family child care homes, Head Start programs, afterschool programs, and emergency shelters.

H.R. 7723 seeks to bar providers from receiving federal funds if they commit fraud, but states are already administering CACFP with strong oversight systems specifically designed to detect and prevent integrity concerns. These systems are built from U.S. Department of Agriculture (USDA) guidance and technica1 assistance.

H.R. 7723 would use the existing Serious Deficiency (SD) process to trigger disbarment, which is problematic because it is a tool that is inconsistently applied and is often triggered by minor errors rather than fraud or misconduct.

In May 2024, USDA began the rulemaking process to update and improve the SD process, with hundreds of stakeholders urging USDA to clearly define fraud and provide more technical assistance. These identified improvements must be included in a Final Rule to ensure due process and that children and families do not lose access to quality and community-based child care due to minor or inadvertent errors.

``We are also concerned about the chilling effect this bill may have on child care providers.'' Fear of losing CCDBG funding over inadvertent CACFP errors could push providers to withdraw from CACFP entirely, reducing children's access to healthy meals at a critical time for their health and development.

We strongly support holding providers who commit fraud accountable. However, inaccurate or exaggerated claims about alleged fraud should not be the basis for jeopardizing children's access to nutritious food and access to quality and locally-based child care. We urge you to oppose this bill.

Thank you for your consideration to ensure access to high quality and community-based child nutrition and child care. We welcome the opportunity to discuss these concerns further. Sincerely,

National Organizations:

American Federation of State, County and Municipal Employees (AFSCME); CACFP Roundtable; Center for Law and Social Policy (CLASP); Common Threads; Food Research & Action Center (FRAC); First Focus Campaign for Children; National Association for Family Child Care; National CACFP Association; National CACFP Forum; National Farm to School Network; ZERO TO THREE.

State and Local Organizations:

Alpha & Omega Nutrition Program, Inc. (Tennessee); Child Nutrition Services (Nebraska); Children's Hunger Alliance (Ohio); CocoKids Inc (California); Genesee County Interagency Council (New York); Giving Youth A Chance (Tennessee); Hawaii Children's Action Network Speaks!; Indy Hunger Network (Indiana); Lucia Mar USD (California); Marathon County Child Development Agency (Wisconsin); Marshmallow Home Daycare LLC (California); Missouri State Center for Ozarks Poverty Research; Northwest Harvest (Washington); Oppenheim Consulting, LLC; San Francisco--Marin Food Bank (California); Second Harvest Food Bank of Orange County (California); Tiny Tots and Little Tykes, Inc. (Minnesota).

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Mr. Speaker, I also include in the Record a letter from AFSCME, Education Healthcare Public Services, and SEIU that says in part: ``This bill would enable the administration to withdraw Federal childcare funds abruptly without cause, making childcare less affordable and reliable for working families.'' June 2, 2026. House of Representatives, Washington, DC.

Dear Representative: On behalf of the 5 million members of the American Federation of State, County and Municipal Employees (AFSCME), American Federation of Teachers (AFT), and Service Employees International Union (SEIU), we write collectively in opposition to Stop Child Care Scams Act (H.R. 7726), which purports to address allegations of fraud in child care programs. ``This bill would enable the administration to withdraw federal childcare funds abruptly without cause, making childcare less affordable and reliable for working families.'' This legislation would also make it even more difficult for struggling childcare providers to keep their doors open. We urge you to vote no on H.R. 7726.

Our unions represent family childcare providers, childcare centers, programs and services, and preschool employees. Some of these programs span traditional working hours and others operate well beyond the traditional work day to accommodate parents who are healthcare workers on 12-hour shifts, service members working on bases that operate 24/7, construction workers who are onsite by 7:00 a.m., and other working parents who work outside the once traditional 9 to 5. Many providers already operate on razor-thin margins, working long hours, overseeing staff and making personal financial sacrifices, like delaying their own pay, to keep their doors open and meet payroll. Constant funding disruptions to childcare will force many providers to reduce services or close altogether. They deserve better and more timely pay rather than additional delays and uncertainty. This vital component of our workforce needs certainty and steady funding to provide the care needed for America's working families.

Earlier this year, the Trump administration, abruptly and without justification, illegally withheld funding for more than 300,000 children in more than 44,000 childcare programs in five states funded by the Child Care and Development Block Grant (CCDBG). Another 200,000 children who do not receive childcare assistance but rely on programs that do, may have also been affected. Unions and other allies swiftly challenged these actions in court. Multiple courts ordered the administration to reverse course. Now, H.R. 7726 would amend current law to allow these politically motivated, baseless and deeply harmful funding freezes to resume.

CCDBG is a critically important program for infants and toddlers, preschoolers, school-aged children, and a crucial workforce support. Reliable, consistent childcare funding from the federal government is essential to ensure that parents can work while their children are wellcared for and gain critical skills for continued education and success. CCDBG also supports school-aged children in before and after care. Further, childcare programs, both centers and family childcare, need the assurance of stable, consistent funding so that their work can continue.

CCDBG has enjoyed bipartisan support with champions from both parties because the investments pay off and the program is run well. CCDBG is one of the most closely monitored human services programs with states required to submit detailed plans to the federal government, track eligibility, conduct regular provider inspections and report spending to the federal government. The most recent report from the Administration for Children and Families' Office of Child Care's National Center on Subsidy Innovation and Accountability showed that CCDBG had lower rates of improper payments than other programs. As a reminder, improper payments include errors that cannot be solely classified as fraud, such as inadvertent error.

H.R. 7726 further empowers the administration in its attempts to weaponize the distribution of congressionally appropriated funds. Instead, Congress should ensure that enacted funding is distributed lawfully and without delays due to political motivations. We urge you to oppose H.R. 7726 and focus on ways to make childcare more affordable for millions of working families. Sincerely, Elizabeth S. Watson,

American Federation of State, County and Municipal Employees (AFSCME). Kristor Cowan,

American Federation of Teachers (AFT). John Gray,

Service Employees International Union (SEIU).

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia.

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Chu).

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Mr. Speaker, I include in the Record a letter from the Child Care for Every Family Network. The Child Care for Every Family, June 1, 2026.

Dear Members of Congress: We, the undersigned organizations, led by the Child Care for Every Family Network with the support of the National Association for the Education of Young Children, National Women's Law Center, the Center for Law and Social Policy, and the National Association of Family Child Care, strongly urge you to reject a package of child care bills--or the ``Stop Child Care Scams Act of 2026''--amending the Child Care and Development Block Grant Act (CCDBG) and the Child and Adult Care Food Program (CACFP).

These bills give the U.S. Department of Health and Human Services unprecedented authority to withhold all Child Care and Development Fund (CCDF) funding from states without cause or due process, bar child care providers for non-fraudulent activity, and burden states with costly activities that don't improve program integrity. There is no evidence of significant or widespread fraud in the federal child care program. These bills will be detrimental to child care access as they will result in fewer families receiving child care assistance from CCDF, fewer child care providers willing to serve families with child care subsidies, and further destabilize America's child care sector, which is already stretched too thin. The latest annual survey report from the National Association for Family Child Care reveals an unsustainable situation: 35 percent reported earning less than $10 an hour despite 71 percent working 50 or more hours per week, and 48 percent reported working 60 or more hours per week. A recent survey of providers by the National Association for the Education of Young Children makes clear that insufficient public investment threatens parents' ability to afford and access child care.

In short, these bills deny support to children and families while doing absolutely nothing to strengthen our child care system or help the millions of families that are struggling to find and afford the child care they need. Lawmakers must reject this effort that will destabilize our child care system and harm the families that rely on it.

The House of Representatives will soon consider legislation that ignores the real child care crisis and create a constellation of policies that exacerbate this crisis, undermining and weakening our current system and doing nothing to help the millions of families that urgently need help affording child care. We urge lawmakers to reject the ``Stop Child Care Scams Act of 2026,'' which includes the following bills:

H.R. 7720 Child Care Payment Integrity and Fraud Accountability Act: This bill treats all states as high-risk by annual error rate reviews instead of every three years, despite no evidence of significant or widespread fraud in the CCDF program. These time-consuming, burdensome, and costly reviews will mean states have less funding for child care assistance, while doing nothing to reduce fraud.

H.R. 7721 Combating Regulatory Abuse, Closing Known Deficiencies, and Overseeing Waste Nationwide Act (CRACKDOWN Act): This bill would give the U.S. Department of Health and Human Services (HHS) new power to freeze 100 percent of a state's child care funds for state administrative errors. Uses an arbitrary, low-risk threshold standard that isn't about fraud and eliminates state due process. This doesn't reduce fraud and would needlessly punish thousands of families who rely on federal child care assistance and destabilize a state's child care sector.

H.R. 7723 Safeguarding Taxpayer Dollars in Child Care Act: This bill requires HHS and USDA to penalize providers unfairly, including permanently barring child care providers from receiving federal child care funds and participation in the Child and Adult Care Food Program (CACFP). This puts providers who haven't committed fraud at risk of losing their business and could make them less willing to serve families with CCDF subsidies. This could have a chilling effect on providers serving families with subsidies, making it harder for these families to find the care they need. It also means that more child care programs could close altogether and more families--including those who don't use subsidies--will have a harder time finding and affording child care.

Regarding CACFP, the bill would further undermine the existing and deeply flawed Serious Deficiency (SD) process to trigger disbarment from the entire program. CACFP ensures that the participating child care centers, family child care homes, Head Start programs, afterschool programs, and emergency shelters serve healthy meals and snacks. States currently administer CACFP with strong oversight systems created by USDA, designed to detect and prevent integrity concerns. SD is inconsistently applied and often triggered by minor errors--not fraud or misconduct--and should not result in termination from either CACFP or CCDF.

H.R. 7726 No Funds for Repeat Child Care Violations Act: This bill would require HHS to permanently bar child care providers from receiving federal funds for non-fraudulent actions, such as incomplete paperwork, like missing signatures. This puts providers who haven't committed fraud at risk of losing their business if they serve families paying with CCDF subsidies. It could have a chilling effect on providers serving families with subsidies, making it harder for those families to find the care they need. It also means that more child care programs could close altogether, and more families including those who don't pay with subsidies--will have a harder time finding and affording child care.

H.R. 7724 No Waivers for Fraud Act: This bill would eliminate HHS's ability to waive a sanction it has placed on a state. This flexibility is rarely, if ever, used but would be important to preserve for instances of capricious sanctioning of states without proof of fraud and more generally for unforeseen situations in which the Secretary and state agree that withdrawing a sanction is appropriate.

We urge lawmakers to vote NO on any package that includes these bills and instead focus on the real child care crisis facing our country.

Signed, National Organizations

Child Care for Every Family Network

Center for Law and Social Policy

National Association for Family Child Care

National Women's Law Center

MomsRising

National Association for the Education of Young Children (NAEYC)

All Our Kin

American Federation of State, County and Municipal Employees (AFSCME)

Americans for Democratic Action (ADA)

AP-OD

Care in Action

Caring Across Generations

Catholic Charities

Children's Defense Fund

Children's Funding Project

Children's HealthWatch

Coalition on Human Needs Congregation of Our Lady of Charity of the Good Shepherd, U.S. Region

Division for Early Childhood of the Council for Exceptional Children (DEC)

Early Learning Policy Group

Equal Rights Advocates

Family Centered Treatment Foundation

Family Values @ Work

First Focus Campaign for Children

Food Research & Action Center (FRAC)

Head Start Child & Family Development Centers, Inc.

Home Grown

Indigenous Visioning

Institute for Women's Policy Research

Integrated Community Solutions, Inc

Justice + Joy National Collaborative

League of United Latin American Citizens (LULAC)

LEGAL VOICE

Local Initiatives Support Corporation (LISC)

National Advocacy Center of the Sisters of the Good Shepherd

National Association of Counsel for Children

National Association of Social Workers (NASW)

National Black Child Development Institute

National Child Care Association

National Domestic Workers Alliance

National Indian Child Care Association

National Organization for Women

National Respite Coalition

National Women's Political Caucus

People Power United

Poder Latinx

Public Advocacy for Kids (PAK)

Public Citizen

ResourceFull Consulting

Service Employees International Union (SEIU)

TOOTRiS

UMOS

Voices for Progress

Vote Mama Lobby

ZERO TO THREE State and Local Organizations Alabama

Alabama Institute for Social Justice Alaska

Alaska Children's Trust

Southeast Childhood Collective

All Alaska Pediatric Partnership (A2P2) Arizona

Children's Action Alliance

Southwest Human Development Arkansas

Arkansas Advocates for Children and Families California

California Association for the Education of Young Children (CAAEYC)

California Child Care Resource & Referral Network

Black Californians Unite for Early Care and Education

Child Care Law Center

Early Edge California

The Children's Partnership

CAPMC

California Commission on the Status of Women & Girls

Black Californians United for Early Care and Education

Parent Voices CA

Bay Area Professional Family Child Care Network

CommUnify

Options for Learning

Modoc County Office of Education/Early Head Start Colorado

Colorado Association for the Education of Young Children (COAEYC)

The Colorado Children's Campaign Connecticut

Connecticut Voices for Children Delaware

Delaware Association for the Education of Young Children District of Columbia

DC Action

DCAEYC

SPACEs in Action

DC Fiscal Policy Institute Florida

Florida National Organization for Women

Florida Head Start Association Georgia

Georgia Statewide Afterschool Network

Voices for Georgia's Children

Helping Mamas

Black Child Development Institute (BCDI)--Atlanta

Georgia Child Care Association

Tri-County Family Connection

Easter Seals North Georgia, Inc. Hawai`i

PATCH

Hawai`i Children's Action Network Speaks! Idaho

Idaho Head Start Association Illinois

COFI-POWER-PAC IL

Illinois Head Start Association

SEIU Healthcare Illinois Indiana Missouri Kansas

Indivisible Chicago Northwest Indiana

Indiana Head Start Association Iowa

Iowa Association for the Education of Young Children Kansas

Futures First Kentucky

Prichard Committee for Academic Excellence Louisiana

For Providers By Providers (4PXP)

Child Care Association of Louisiana Maine

Maine People's Alliance

Maine Immigrants' Rights Coalition

Maine Association for the Education of Young Children (MaineAEYC)

Family Child Care Association of Maine Maryland

Maryland Family Network

Latino Child Care Association of Maryland, Inc. Massachusetts

Massachusetts Head Start Association

Community Labor United Inc.

Strategies for Children

Neighborhood Villages Michigan

Michjgan League for Public Policy

Michigan AEYC Minnesota

All Nations Rise

Gender Justice

Chamber of Mothers Minnesota Chapter

Metropolitan Interfaith Council on Affordable Housing (MICAH) Mississippi

Mississippi Low Income Child Care Initiative Missouri

WEPOWER

Missouri Association for the Education of Young Children

Rhizome: Early Childhood Strategy & Policy Solutions

Missouri Head Start Association

Empower Missouri

Region VII Head Start Association

Douglass Community Services Montana

Montana Advocates for Children

Healthy Mothers, Healthy Babies--The Montana Coalition

Montana Association for the Education of Young Children

Zero to Five Montana

Montana Budget & Policy Center Nebraska

IBBG

Nebraska Association for the Education of Young Children, Inc. Nevada

Children's Advocacy Alliance New Hampshire

Kids First Consulting New Jersey

NJ Communities United

New Jersey Citizen Action

Advocates for Children of New Jersey

Laundry Workers Center

NJ Association for the Education of Young Children

New Jersey Institute for Social Justice

CWA Local 1037 New Mexico

OLE Education Fund

New Mexico Early Childhood Association New York

Alliance for Quality Education

The Children's Agenda

NY Association for the Education of Young Children

Diverse Mosaic Community Center

Children's Defense Fund--New York

Citizen Action of New York

Early Care & Learning Council

Western New York Child Care Action Team North Carolina

Education Justice Alliance North Dakota

North Dakota KIDS COUNT Ohio

Ohio Association for the Education of Young Children

Southwest Ohio Association for the Education of Young Children

Ohio Organizing Collaborative

Chosen Kids

Columbus Early Learning Centers

Early Care and Learning, Inc. Oklahoma

Oklahoma Association for the Education of Young Children

Oklahoma Child Care Association Oregon

For All Families

Children's Institute Pennsylvania

Pennsylvania Head Start Association

Children First (PA)

Pennsylvania Association for the Education of Young Children

Pennsylvania Partnerships for Children

Pennsylvania Child Care Association

New Voices for Reproductive Justice

First Up Rhode Island

RI Association for the Education of Young Children

Rhode Island KIDS COUNT South Carolina

South Carolina Program for Infant/Toddler Care

Institute for Child Success South Dakota

South Dakota KIDS COUNT Tennessee

Nashville Area Association for the Education of Young Children Texas

CHILDREN AT RISK

Texans Care for Children

Children's Defense Fund--Texas

Austin/Travis County Success by 6 Utah

Utah Association for the Education of Young Children

Voices for Utah Children

Utah Private Child Care Association Vermont

Vermont Early Childhood Advocacy Alliance

Building Bright Futures, Vermont's Early Childhood State Advisory Council

Vermont Association for the Education of Young Children Virginia

Virginia Head Start Association

Virginia Organizing Washington

Children's Campaign Fund

Washington State Association of Head Start and ECEAP

Akin West Virginia

West Virginia Head Start Association, Inc. Wisconsin

Wisconsin Coalition Against Sexual Assault

Wisconsin Head Start Association

Wisconsin Early Childhood Association Wyoming

Wyoming Community Foundation

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. The letter says in part: ``These bills give the U.S.
BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Mr. Speaker, I include in the Record a link to an article printed in the MinnPost, the headline of which says: ``Here's what's really happening with childcare fraud in Minnesota. Evidence is nowhere near the epidemic levels a viral YouTube video would suggest--but it hasn't stopped a crackdown on child care funding. Here's the fact check.'' https://www.minnpost.com/state-government/ 2026/01/heres-whats-really-happening-with-child-care-fraud-in- minnesota-explained/?gad_source=1&gad _campaignid=9109082086.

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Mr. Speaker, I include in the Record a letter from Child Care Aware of America that says, in part, ``several provisions in the bill would duplicate existing requirements, create unclear mandates, and ultimately undermine families' access to childcare'' and that the bill ``would impose new sanctions, restrict flexibility, and potentially reduce childcare funding to States.'' ChildCare Aware of America, June 2, 2026.

Dear Representative: We write to share concerns about the Stop Child Care Scams Act of 2026 (H.R. 7726) that previously advanced out of the House Education and Workforce Committee as a package of eight bills. Child Care Aware of America (CCAoA) supports swift and thorough action when credible allegations of fraud arise. But any effort to strengthen current safeguards should do so without causing economic harm to families, communitIes, or the child care system. Unfortunately, several provisions in the bill would duplicate existing requirements, create unclear mandates, and ultimately undermine families' access to child care. At a time when child care prices remain extremely high for families, additional administration burden and cost may cause providers to reduce enrollment, withdraw from subsidy programs, or close altogether, further straining access for families who need care. We urge you to vote no on the Stop Child Care Scams Act of 2026 (H.R. 7726).

There are already robust program integrity processes in place within the Child Care and Development Block Grant (CCDBG), with dearly defined roles for both federal and state agencies. Federal law and regulation require states to conduct eligibility verification, establish monitoring and enforcement procedures, review payments, investigate suspected fraud, and implement corrective action plans where needed. States must submit detailed plans outlining program integrity strategies, and they are subject to federal oversight. In addition, states already report extensive data on payment accuracy and program integrity. Under federal regulation, states must report the error rate, the percentage of cases with an improper payment, the percentage of improper payments, the average amount of improper payment, and the estimated annual amount of improper payments (45 CFR 98.100(b)). States are also required to outline procedures to investigate and recover fraudulent payments, which are different than improper payments or errors, and to impose sanctions on clients or providers in response to fraud. The U.S. Department of Health and Human Services has clear oversight authority, including reviewing state compliance, requiring corrective actions, and imposing penalties when necessary.

The Stop Child Care Scams Act of 2026 (H.R. 7726) would impose new sanctions, restrict flexibility, and potentially reduce child care funding to states. While accountability is important, reducing funding limits states' ability to operate the child care subsidy systems that millions of families rely on. These resources support access to child care, workforce stability, and the state administrative capacity needed to maintain strong program oversight. Excessive sanctions and rigid penalties may discourage child care providers from participating in the subsidy system, or related programs such as the Child and Adult Care Food Program (CACFP). The result could be a smaller supply of child care for families.

The bill's administrative requirements would also be costly to implement. Expanded reporting, monitoring, technology upgrades, and compliance obligations require significant staff time and system changes. Because these expenses are typically covered by Child Care and Development Fund (CCDF) dollars, increased administrative costs leave fewer resources available for direct services. As a result, states may need to serve fewer children, adjust reimbursement rates for child care providers, or scale back quality initiatives. Increased compliance risk and reduced flexibility may further accelerate program closures, making it harder for families to access care.

Our concerns apply to several of the sections of the Stop Child Care Scams Act of 2026. Section 5, Improper Payment Rate Requiring Corrective Action Plan; Conditional Ineligibility, and Section 10, Fraudulent Payments, focus on reducing improper payments without making a necessary distinction between administrative errors and intentional fraud. That conflation requires states to adopt overly restrictive payment practices that destabilize child care provider operations, particularly for small businesses operating on thin margins. Section IO, Fraudulent Payments, would add new reporting and compliance requirements that increase administrative costs and divert funds from direct services for families and children. Section 6, Cyclical Monitoring of State Performance, duplicates existing federal monitoring and review requirements. Section 2, Strengthening the Authority to Withhold Funds for Fraud, imposes funding penalties that ultimately reduce resources available to serve families. Similarly, Section 4, Preventing Fraud in the Child Care and Development Block Grant Program, would limit flexibility that states currently use to manage complex program operations, potentially reducing child care supply.

CCAoA supports thoughtful, targeted efforts to strengthen program integrity and prevent fraud. However, these efforts should build on existing systems, preserve clarity in federal and state roles, distinguish administrative errors and improper payments from fraud, and most importantly not punish children and families by destabilizing or defunding the child care system. As a result, we urge the Representative to oppose the Stop Child Care Scams Act of 2026 (H.R. 7726). We welcome the opportunity to work with you on balanced solutions that ensure families maintain access to safe, affordable child care. Sincerely, Susan Gale Perry, Chief Executive Officer, Child Care Aware of America.

Mr. Speaker, millions of families rely on safe, stable childcare in their communities. Unfortunately, the cost of childcare often rivals the cost of housing. Many communities lack adequate childcare altogether.

H.R. 7726 fails to meaningfully improve America's broken childcare system, but it does add unnecessary bureaucratic burdens to States and providers, many of whom are already struggling.

Fraud must be addressed, but in substance, not by discussing the merits of the title of the bill. Smart accountability means strong enforcement paired with practical flexibility. Requiring extra reports and punishing States and providers for minor, inadvertent mistakes does not protect children and doesn't even reduce fraud. It does put programs that families depend on at risk and allows the Trump administration to weaponize this legislation by withholding funding from States that didn't vote for him.

I oppose H.R. 7726, which fails to reduce fraud and prioritizes inflexible mandates over the real-world needs of working families.

BREAK IN TRANSCRIPT


Source
arrow_upward