Rep. Kennedy Introduces Bill to Protect Millions in Federal Child Care Funds from Fraud and Abuse

Washington, D.C. – Congressman Mike Kennedy (UT-03) introduced the Stop Childcare Funding Fraud Act to restore accountability in the Child Care and Development Block Grant (CCDBG) — the $8 billion federal program that funds critical child care for working families across America. This legislation holds fraudsters accountable by requiring states to track and report improper payments, submit corrective action plans when error rates are too high, and face real funding cuts if they fail to fix the problem.
“When fraud happens, it's not just the taxpayers who lose, it is the kids and families these dollars were intended to help. Utah families work hard and pay their taxes expecting Washington to be good stewards of that money,” said Congressman Mike Kennedy . The Stop Child care Funding Fraud Act makes certain that fraudsters face real consequences and brings transparency to how states are spending these funds. I will continue to fight to root out waste, fraud, and abuse wherever it exists — because every federal dollar meant for America's children must reach America's children.”
Investigators found that in Minnesota, fraudsters exploited the Child Care and Development Block Grant (CCDBG) to siphon off tens of millions of dollars through fake or ineligible providers. But we know Minnesota is not an isolated case. The same structural weaknesses that enable that fraud exist across the country. Families depend on these funds to keep their kids in care. Under current law, states can misuse 1 in 10 federal child care dollars before they're required to submit so much as a correction plan. And even then, there are no financial penalties.
The Stop Childcare Funding Fraud Act fixes that with clear definitions, a stricter standard, real financial consequences, and full public transparency.
The Stop Childcare Funding Fraud Act:
Read the full bill text here.