No Waivers for Fraud Act of 2026
- Bill Number
- H.R. 7724
- 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. 510.
- Last Updated
- 2026-06-11T23:41:32Z
AI-Generated Summary
Purpose
The No Waivers for Fraud Act of 2026 (H.R. 7724) aims to strengthen enforcement of the Child Care and Development Block Grant Act of 1990 by preventing the waiver of financial penalties (sanctions) imposed on states that fail to comply with program requirements, such as fraud prevention measures.
Key Provisions
- Amends Section 658I(c) of the Child Care and Development Block Grant Act (42 U.S.C. 9858lg(c)).
- Removes specific phrases throughout four paragraphs that previously allowed the waiver of sanctions under subsection (b)(2):
- Paragraph (1): Strikes "or sanctions imposed upon a State in accordance with subsection (b)(2)".
- Paragraph (2): Strikes "sanction or" in subparagraphs (A) and (B).
- Paragraph (3): Strikes "sanction or".
- Paragraph (7): Strikes "sanction(s) or".
Significant Changes to Existing Law
- Eliminates waiver authority: Previously, the Secretary of Health and Human Services could waive sanctions for noncompliant states (e.g., those not meeting fraud reporting or payment accuracy standards). This bill permanently removes that flexibility, making sanctions mandatory and sustained.
Potential Impacts
- On government agencies: The Department of Health and Human Services loses discretion to grant relief, potentially increasing administrative burdens on states to avoid penalties.
- On citizens: Could indirectly affect access to subsidized child care if states face funding cuts and reduce services, though it aims to ensure program integrity and reduce fraud.
- On states: Noncompliant states will face unavoidable withholding of federal child care funds, pressuring improvements in compliance.
Main Stakeholders
- States: Primary targets, as they receive block grants for child care and must comply to avoid sanctions.
- Federal government (HHS): Loses waiver power, shifting to stricter enforcement.
- Child care providers and families: Affected by any state-level funding disruptions.
- Taxpayers: Benefits from reduced fraud in federal child care spending.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces statutory penalties without executive discretion, potentially leading to more litigation if states challenge sanctions in court.
- Constitutional: Aligns with Congress's spending power under Article I, limiting administrative flexibility in federal grant programs.
- Political: Signals a push for accountability in welfare programs; reported from House Committee on Education and Workforce with amendments, indicating bipartisan or committee consensus on fraud prevention.
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. 510.
- 2026-04-06: Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-590.
- 2026-04-06: Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-590.
- 2026-03-05: Ordered to be Reported (Amended) by the Yeas and Nays: 20 - 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
- No Waivers for Fraud Act — issued 2026-02-26 — PDF (2 pages)
- No Waivers for Fraud Act of 2026 — issued 2026-04-06 — PDF (4 pages)