CRACKDOWN Act of 2026
- Bill Number
- H.R. 7721
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Families
- Status
- Introduced
- Latest Action
- 2026-04-06: Placed on the Union Calendar, Calendar No. 507.
- Last Updated
- 2026-06-11T23:41:32Z
AI-Generated Summary
Purpose
The CRACKDOWN Act of 2026 (H.R. 7721) aims to reduce improper payments—such as overpayments or payments for ineligible recipients—in the Child Care and Development Block Grant (CCDBG) program by setting a 5% threshold. This triggers corrective actions for states and potential funding restrictions, promoting better oversight of federal child care funds.
Key Provisions
- Improper Payment Threshold and Corrective Action Plan (new subsection (c)):
- If a state's improper payment rate exceeds 5% of total CCDBG payments for a fiscal year, the state must submit a corrective action plan to the Secretary of Health and Human Services (HHS) to reduce the rate to 5% or less in future years.
- The state must also provide reports showing compliance with the approved plan.
- Conditional Ineligibility (new subsection (d)):
- If the rate stays above 5% for two consecutive fiscal years, the state becomes ineligible for CCDBG funds unless it proves to the Secretary it will either:
- Reduce the rate to 5% or less in the next year, or
- Make significant progress on the corrective action plan.
Significant Changes to Existing Law
- Amends Section 658J of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858h).
- Redesignates existing subsection (c) as (e) and inserts new subsections (c) and (d).
- Introduces the first specific 5% improper payment threshold with mandatory corrective plans and funding penalties, which did not previously exist in the CCDBG Act.
Potential Impacts
- Government Agencies: HHS gains stronger tools to enforce accountability, potentially reducing federal waste but increasing administrative workload for reviews and approvals.
- States: May face funding cuts, prompting investments in payment accuracy systems; could strain budgets or lead to program changes.
- Citizens: Families relying on child care subsidies might experience disruptions if state funding is reduced, though the goal is to ensure funds reach eligible recipients more efficiently.
- No direct impact on international relations.
Main Stakeholders Affected
- States receiving CCDBG funds (primary recipients).
- Secretary of HHS (oversees reviews, approvals, and enforcement).
- Child care providers and low-income families (indirectly affected by funding stability and subsidy access).
- Federal taxpayers (benefit from reduced improper payments).
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens federal fiscal oversight without altering states' primary role in administering CCDBG; provides clear criteria for ineligibility, reducing ambiguity in enforcement.
- Constitutional: Aligns with Congress's spending power under Article I, imposing conditions on federal grants (standard practice); no apparent federalism challenges as states voluntarily accept CCDBG funds.
- Political: Emphasizes waste reduction and accountability, potentially appealing across parties but controversial if funding cuts affect child care access in high-need states.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-04-06: Placed on the Union Calendar, Calendar No. 507.
- 2026-04-06: Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-587.
- 2026-04-06: Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-587.
- 2026-03-05: Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 15.
- 2026-03-05: Committee Consideration and Mark-up Session Held
- 2026-02-26: Referred to the House Committee on Education and Workforce.
- 2026-02-26: Introduced in House
- 2026-02-26: Introduced in House
Bill Versions
- Combating Regulatory Abuse, Closing Known Deficiencies, and Overseeing Waste Nationwide Act — issued 2026-02-26 — PDF (3 pages)
- Combating Regulatory Abuse, Closing Known Deficiencies, and Overseeing Waste Nationwide Act of 2026 — issued 2026-04-06 — PDF (6 pages)