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 families. Yet, many communities struggle with…
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 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.
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).
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).
Mr. Speaker, I yield 3 minutes to the gentlewoman from Georgia (Mrs. McBath.)
Mr. Speaker, I yield an additional 1 minute to the gentlewoman from Georgia.
Mr. Speaker, I yield 2 minutes to the gentlewoman from California (Ms. Chu).
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)
The letter says in part: ``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.''
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 3 minutes to the gentleman from Virginia (Mr. Subramanyam).
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.
Mr. Speaker, I reserve the balance of my time.
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, I reserve the balance of my time.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself the balance of my time.
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.
Mr. Speaker, I yield back the balance of my time.