H.R. 7723House119th Congress (2025-2027)In Committee

Safeguarding Taxpayer Dollars in Child Care Act of 2026

Introduced February 26, 2026

AI-Generated Summary

Updated April 13, 2026 at 2:04 AM UTC

The Safeguarding Taxpayer Dollars in Child Care Act of 2026 amends the Child Care and Development Block Grant Act of 1990 to prevent fraud by permanently debaring child‑care providers who are found to have committed fraud from receiving federal assistance. It also adds similar debarment rules to the Child and Adult Care Food Program and the National School Lunch Act’s day‑care component. The bill targets any child‑care provider, family or group day‑care home that receives federal child‑care funding.

Key Provisions

  • Adds a new fraud‑determination and debarment provision to the Child Care and Development Block Grant Act, permanently barring providers with a final fraud finding from receiving assistance.
  • Defines “final determination of fraud” to include false statements, misrepresentations, operating without required licensing, improper expenditures, or other fraudulent conduct.
  • Extends debarment to providers already barred from the Child and Adult Care Food Program, automatically disqualifying them from block‑grant assistance.
  • Amends the National School Lunch Act to require termination and permanent debarment of day‑care homes that commit fraud in the Child and Adult Care Food Program.

Legislative Activity

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5 earlier actions
HouseCalendars Latest Action

Placed on the Union Calendar, Calendar No. 509.

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: 20 - 15.

March 5, 2026

HouseCommittee

Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-589.

April 6, 2026

HouseCalendars

Placed on the Union Calendar, Calendar No. 509.

April 6, 2026

Floor Debate

14 members

What members said about H.R. 7723 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

2 versions available

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Latest
Reported in HouseIssued April 6, 2026

IB

Union Calendar No. 509

119th CONGRESS

2d Session

H. R. 7723

[Report No. 119–589]

IN THE HOUSE OF REPRESENTATIVES

February 26, 2026

Ms. Foxx introduced the following bill; which was referred to the Committee on Education and Workforce

April 6, 2026

Additional sponsor: Ms. Letlow

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 debar child care providers that committed fraud from receiving financial assistance under the Act, and for other purposes.


1.

Short title

This Act may be cited as the Safeguarding Taxpayer Dollars in Child Care Act of 2026.

2.

Preventing fraud in the Child Care and Development Block Grant program

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

(1)

by redesignating paragraph (3) as paragraph (4); and

(2)

by inserting after paragraph (2) the following:

(3)

Determination of fraud

(A)

Investigation

The Secretary shall investigate fraud with respect to financial assistance available under this subchapter.

(B)

Debarment

In the case that the Secretary makes, or finds that there has been, a final determination of fraud against a child care provider that received financial assistance available under this subchapter, the Secretary shall permanently debar such child care provider from receiving such financial assistance.

(C)

Providers debarred from Child and Adult Care Food Program

In the case that a child care provider has been debarred from participating in the Child and Adult Care Food Program under section 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766) in accordance with subsection (d)(5)(E)(i) of such section, the Secretary shall permanently debar such child care provider from receiving financial assistance under this subchapter.

(D)

Final determination of fraud definition

In this paragraph, the term final determination of fraud means a determination reached in an administrative order or as part of a judicial decision, for which any rights to review or appeal have been exhausted or waived, that a child care provider—

(i)

knowingly submitted a false statement or documentation to obtain financial assistance available under this subchapter;

(ii)

misrepresented ownership of, enrollment at, attendance at, or services provided through a program of child care services, or the eligibility of the provider to provide such services, to obtain such financial assistance;

(iii)

to obtain such financial assistance, operated without the State licensing described in section 658E(c)(2)(F) and without receiving an exception to such licensing;

(iv)

made a knowing and improper expenditure of such financial assistance; or

(v)

engaged in any other conduct related to such financial assistance that constituted fraud under Federal or State law.

.

3.

Preventing fraud in the Child and Adult Care Food Program

Section 17(d)(5) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(d)(5)) is amended—

(1)

by redesignating subparagraph (E) as subparagraph (F); and

(2)

by inserting after subparagraph (D) the following:

(E)

Termination due to fraud

(i)

Debarment

In the case that the participation of an institution or family or group day care home under the program is terminated due to a final determination of fraud, the Secretary shall permanently debar such institution or family or group day care home from participating in the program.

(ii)

Providers debarred from Child Care and Development Block Grant program

In the case that an institution or family or group day care home has been debarred from receiving financial assistance under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.) in accordance with section 658I(b)(3)(B) of such Act, the Secretary shall permanently debar such institution or family or group day care home from participating in the program.

(iii)

Final determination of fraud definition

In this subparagraph, the term final determination of fraud means a determination reached in accordance with the procedures and requirements of this section, for which any rights to review or appeal have been exhausted or waived, that an institution or family or group day care home—

(I)

knowingly submitted a false statement or documentation to obtain funds disbursed under subsection (f)(1)(A);

(II)

misrepresented ownership, enrollment, attendance, or services in connection with the operation of the program by such institution or family or group day care home, or the eligibility of such institution or family or group day care home to operate the program, to obtain such funds;

(III)

made a knowing and improper expenditure of such funds; or

(IV)

engaged in any other conduct related to such funds that constituted fraud under Federal or State law.

.

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