Bills · HR 7794
IN COMMITTEE· 119TH CONGRESS
House BillHR 7794Families
Stop Child Care Funding Fraud Act of 2026
INTRO MAR 4· LAST ACTION MAR 4
READING
4MIN
COSPONSORS
3
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it aims to ensure that federal tax dollars allocated for child care are spent wisely and effectively. Currently, there can be issues with how states manage these funds, leading to overpayments, payments to ineligible recipients, or payments that can't be verified. If this bill becomes law, it would create strong financial incentives for states to tighten their oversight, reduce errors, and prevent potential misuse of funds.
If the bill doesn't pass, the current system for tracking and addressing improper payments in federal child care programs would remain, potentially leading to continued inefficiencies or concerns about accountability. While the bill could lead to more responsible spending, it also carries the risk that funding cuts to states could inadvertently reduce the availability of child care services for families in need if states struggle to meet the strict targets.
KEY PROVISIONS
5AI-extractedPROVISION 01
States must submit reports on the rate of improper payments for federal child care funds and outline actions to lower this rate.
This provision establishes a clear requirement for states to track and disclose how effectively they are managing federal child care dollars.
PROVISION 02
States will face financial penalties, ranging from 5% to 15% reductions in future federal child care funds, if their improper payment rate exceeds 6%.
This creates a strong financial incentive for states to improve their financial oversight and reduce errors in child care subsidy payments.
PROVISION 03
If a state's improper payment rate exceeds 6%, it must submit a corrective action plan within 60 days, including verified child attendance documentation.
This provides a specific mechanism for states to address identified issues and demonstrate how they plan to achieve compliance and improve accuracy.
PROVISION 04
The bill defines an 'improper payment' to include overpayments, underpayments, payments to ineligible individuals, or payments that cannot be verified.
This clarifies what states must track and report, promoting consistent measurement and understanding of payment errors across all states.
PROVISION 05
The federal Secretary's report on child care funds must now include a state-by-state breakdown of improper payment rates and corrective actions taken.
This increases transparency, allowing Congress and the public to monitor individual state performance in managing federal child care funds.
SPONSORSHIP
1 + 3
R· Utah
YRS IN OFFICE
1
BILLS LED
36
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 3 IND 0
ACTION TIMELINE
2 EVENTSMAR 4
Introduced in House
MAR 4
Referred to the House Committee on Education and Workforce.
BILL INFO
TypeHouse Bill
NumberHR 7794
Congress119th
StatusIn Committee
IntroducedMar 4, 2026
Last actionMar 4, 2026
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IN COMMITTEE· 119TH CONGRESS · EDUCATION AND WORKFORCE COMMITTEE · INTRODUCED MAR 4, 2026
House BillHR 7794Families
Stop Child Care Funding Fraud Act of 2026
INTRODUCED MAR 4, 2026· LAST ACTION MAR 4, 2026
PASSAGE CHANCES
—%
READING
4 min
COSPONSORS
3
COMPLEXITY
Moderate
