H.R. 7721House119th Congress (2025-2027)In Committee

CRACKDOWN Act of 2026

Introduced February 26, 2026

AI-Generated Summary

Updated April 13, 2026 at 2:04 AM UTC

The CRACKDOWN Act of 2026 amends the Child Care and Development Block Grant Act of 1990 to add rules about improper payments. It sets a 5 percent improper‑payment threshold for states that receive child‑care block grant funds. If a state exceeds the threshold, it must submit a corrective action plan, and repeated failures can make the state ineligible for future funding unless it shows improvement.

Key Provisions

  • If a state's improper payment rate exceeds 5 percent of total payments in a fiscal year, the state must submit a corrective action plan to the Secretary for approval.
  • The state must also provide any additional reports the Secretary requires to demonstrate compliance with the plan.
  • If a state exceeds the 5 percent threshold for two consecutive fiscal years, it becomes conditionally ineligible for block‑grant funds unless it can prove it will reduce the rate to 5 percent or make significant progress on the approved corrective action plan.

Legislative Activity

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5 earlier actions
HouseCalendars Latest Action

Placed on the Union Calendar, Calendar No. 507.

April 6, 2026

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HouseIntro Referral

Introduced in House

February 26, 2026

HouseIntro Referral

Referred to the House Committee on Education and Workforce.

February 26, 2026

HouseCommittee

Committee Consideration and Mark-up Session Held

March 5, 2026

HouseCommittee

Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 15.

March 5, 2026

HouseCommittee

Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-587.

April 6, 2026

HouseCalendars

Placed on the Union Calendar, Calendar No. 507.

April 6, 2026

Floor Debate

14 members

What members said about H.R. 7721 on the floor

9 Republicans5 Democrats
Robert C. "Bobby" Scott
Rep. Robert C. "Bobby" ScottD-VA-3 · Jun 3, 2026

Mr. Speaker, I yield myself such time as I may consume. 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…

Tim Walberg
Rep. Tim WalbergR-MI-5 · Jun 3, 2026

Mr. Speaker, pursuant to House Resolution 1333, I call up the bill (H.R. 7726) to amend the Child Care and Development Block Grant Act of 1990 to withhold funds from noncompliant States under such…

Mary E. Miller
Rep. Mary E. MillerR-IL-15 · Jun 3, 2026

Mr. Speaker, I rise today in strong support of my bill, H.R. 7726, the Stop Child Care Scams Act, which joins with the administration's efforts to rid the Federal Government of waste, fraud, and…

Lucy McBath
Rep. Lucy McBathD-GA-6 · Jun 3, 2026

Mr. Speaker, I thank the ranking member of the Education and Workforce Committee for yielding. Stealing from those who need it most is especially egregious, and I can agree with my colleagues on…

Glenn Grothman
Rep. Glenn GrothmanR-WI-6 · Jun 3, 2026

Mr. Speaker, I rise in support of H.R. 7726, the Stop Child Care Scams Act. One of the provisions in this bill is the Combating Regulatory Abuse, Closing Known Deficiencies, and Overseeing Waste…

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Suhas Subramanyam
Rep. Suhas SubramanyamD-VA-10 · Jun 3, 2026

Mr. Speaker, I thank the ranking member for yielding. H.R. 7726 is supposedly intended to address fraud in childcare programs, but all it actually does is give the administration more power to…

Pete Stauber
Rep. Pete StauberR-MN-8 · Jun 3, 2026

Mr. Speaker, I rise today in support of H.R. 7726, the Stop Child Care Scams Act. This legislation is about something every American should agree on: Childcare assistance should go to children and…

Robert F. Onder, Jr.
Rep. Robert F. Onder, Jr.R-MO-3 · Jun 3, 2026

Mr. Speaker, I thank Chairman Walberg for yielding. Mr. Speaker, I rise in strong support of H.R. 7726, the Stop Child Care Scams Act. This package will punish bad actors who steal taxpayer dollars…

Burgess Owens
Rep. Burgess OwensR-UT-4 · Jun 3, 2026

Mr. Speaker, every cent of taxpayer money should be treated as sacred. It comes directly out of the pockets of hardworking Americans. That is why no amount of fraud in Federal public assistance…

Judy Chu
Rep. Judy ChuD-CA-28 · Jun 3, 2026

Mr. Speaker, I rise in strong opposition to H.R. 7726, the Stop Child Care Scams Act. As families across the country struggle with the high cost of childcare, Republicans are advancing legislation…

Mark B. Messmer
Rep. Mark B. MessmerR-IN-8 · Jun 3, 2026

Mr. Speaker, I rise today in strong support of the Stop Child Care Scams Act, which provides a commonsense path toward preventing the rampant waste, fraud, and abuse in our Federal childcare support…

Mike Kennedy
Rep. Mike KennedyR-UT-3 · Jun 3, 2026

Mr. Speaker, I rise today in strong support of H.R. 7726, the Stop Child Care Scams Act of 2026. Before I came to Congress, I spent my career as a physician in Utah caring for working families. In…

Suzanne Bonamici
Rep. Suzanne BonamiciD-OR-1 · Jun 3, 2026

Mr. Speaker, I rise today in opposition to H.R. 7726, which will have detrimental effects on child care in the United States. Fraud at any level is unacceptable, especially if it takes valuable child…

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Michael A. Rulli
Rep. Michael A. RulliR-OH-6 · Jun 3, 2026

Mr. Speaker, I thank Chairman Walberg for yielding. Mr. Speaker, I am proud to stand in support of H.R. 7726, the Stop Child Care Scams Act of 2026. I am honored to see my bill added into this…

Bill Text

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Latest
Reported in HouseIssued April 6, 2026

IB

Union Calendar No. 507

119th CONGRESS

2d Session

H. R. 7721

[Report No. 119–587]

IN THE HOUSE OF REPRESENTATIVES

February 26, 2026

Mr. Grothman introduced the following bill; which was referred to the Committee on Education and Workforce

April 6, 2026

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Strike out all after the enacting clause and insert the part printed in italic

For text of introduced bill, see copy of bill as introduced on February 26, 2026


A BILL

To amend the Child Care and Development Block Grant Act of 1990 to implement an improper payment threshold under such Act.


1.

Short title

This Act may be cited as the Combating Regulatory Abuse, Closing Known Deficiencies, and Overseeing Waste Nationwide Act of 2026 or the CRACKDOWN Act of 2026.

2.

Improper payment rate requiring corrective action plan; conditional ineligibility

Section 658J of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858h) is amended—

(1)

by redesignating subsection (c) as subsection (e), and

(2)

by inserting after subsection (b) the following:

(c)

improper payment threshold requiring corrective action plan

If for a fiscal year the improper payment rate of a State is more than 5 percent of the aggregate amount of payments made to carry out this subchapter by such State for such fiscal year, then such State shall submit to the Secretary—

(1)

for review and approval a corrective action plan to reduce such rate to not more than 5 percent for each subsequent fiscal year; and

(2)

such reports as the Secretary may require to show that such State is complying with the requirements of such plan as approved by the Secretary.

(d)

Conditional ineligibility

If for each of 2 consecutive fiscal years the improper payment rate of a State determined under this section is more 5 percent, then such State shall be ineligible to receive funds under this subchapter unless such State demonstrates to the satisfaction of the Secretary that such State for the next fiscal year will—

(1)

reduce such improper payment rate to not more than 5 percent for the next fiscal year; or

(2)

make significant progress to comply with the corrective action plan approved under subsection (c).

.

April 6, 2026

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed