Stop Child Care Scams Act of 2026
- Bill Number
- H.R. 7726
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Families
- Status
- Passed House
- Latest Action
- 2026-06-04: Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Last Updated
- 2026-07-06T18:27:59Z
AI-Generated Summary
Stop Child Care Scams Act of 2026
Purpose This legislation amends the Child Care and Development Block Grant Act of 1990 to strengthen fraud prevention and accountability in federal child care funding programs. It aims to reduce improper payments and fraudulent activities by states, providers, and participants.
Key Provisions
- Requires the Secretary of Health and Human Services to investigate fraud in child care assistance and permanently bar providers found guilty of fraud from receiving funds.
- Mandates that states include detailed descriptions of their fraud detection, recovery, and eligibility verification processes in their program plans.
- Sets a 5% threshold for improper payment rates; states exceeding this must submit corrective action plans, and repeated failures can lead to loss of funding eligibility.
- Establishes periodic federal monitoring of state performance every three years, with "high risk" designations triggering extra oversight.
- Extends similar fraud debarment rules to the Child and Adult Care Food Program and creates cross-program bans between the two initiatives.
- Requires states to report annually on the dollar and percentage amounts of improper payments, including suspected fraud.
- Directs the Government Accountability Office to study fraud prevention across early childhood programs and recommend improvements.
Significant Changes to Existing Law
- Replaces discretionary language ("Secretary may") with mandatory requirements ("Secretary shall") for withholding funds and investigating fraud.
- Adds new subsections on program integrity, fraud determinations, and debarment procedures not previously required.
- Introduces specific improper payment thresholds and consequences, along with mandatory monitoring cycles.
- Removes the Secretary's authority to waive sanctions for noncompliance.
- Defines "final determination of fraud" to include knowing false statements, misrepresentation of services, unlicensed operations, or improper spending.
Potential Impacts
- Increases administrative burdens on federal and state agencies through expanded reporting, investigations, and monitoring.
- May affect child care providers by imposing permanent funding bans for fraud and requiring stricter eligibility checks.
- Could influence families using subsidized child care if providers are removed from programs or if states face funding restrictions.
- No direct effects on international relations are outlined.
Main Stakeholders Affected
- State agencies administering child care block grants.
- Child care providers and institutions participating in funded programs.
- Families receiving child care assistance.
- Federal entities including the Department of Health and Human Services and the Government Accountability Office.
- Local governments or entities that manage aspects of these programs on behalf of states.
Notable Legal, Constitutional, or Political Implications
- Enhances federal oversight of state-run programs, potentially shifting more authority to the national level.
- Relies on administrative and judicial processes for fraud findings, with appeals rights preserved until exhausted.
- Focuses on accountability measures without altering core program eligibility or funding formulas.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Miller, Mary E. [R-IL-15]
Recent Actions
- 2026-06-04: Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 2026-06-03: Motion to reconsider laid on the table Agreed to without objection.
- 2026-06-03: On passage Passed by the Yeas and Nays: 217 - 207 (Roll no. 198). (text of amendment in the nature of a substitute: CR H3796-3797) (Roll call 198)
- 2026-06-03: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 217 - 207 (Roll no. 198). (text of amendment in the nature of a substitute: CR H3796-3797) (Roll call 198)
- 2026-06-03: On motion to recommit Failed by the Yeas and Nays: 210 - 213 (Roll no. 197). (Roll call 197)
- 2026-06-03: Considered as unfinished business. (consideration: CR H3811-3812)
- 2026-06-03: POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 7726, the Chair put the question on motion to recommit and by voice vote, announced the noes had prevailed. Mr. Subramanyam demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
- 2026-06-03: The previous question on the motion to recommit was ordered pursuant to clause 2(b) of rule XIX.
- 2026-06-03: Mr. Subramanyam moved to recommit to the Committee on Education and Workforce. (text: CR H3805)
- 2026-06-03: The previous question was ordered pursuant to the rule.
- 2026-06-03: DEBATE - The House proceeded with one hour of debate on H.R. 7726.
- 2026-06-03: Rule provides for consideration of H.R. 8646, H.R. 7726, H.R. 7892 and H.R. 8872. The resolution provides for consideration of H.R. 8646 under a structured rule and H.R. 7726, H.R. 7892, and H.R. 8872 under a closed rule, with one hour of general debate on each bill. The resolution provides for one motion to recommit on each bill.
- 2026-06-03: Considered under the provisions of rule H. Res. 1333. (consideration: CR H3796-3805)
- 2026-06-03: Rules Committee Resolution H. Res. 1333 Reported to House. Rule provides for consideration of H.R. 8646, H.R. 7726, H.R. 7892 and H.R. 8872. The resolution provides for consideration of H.R. 8646 under a structured rule and H.R. 7726, H.R. 7892, and H.R. 8872 under a closed rule, with one hour of general debate on each bill. The resolution provides for one motion to recommit on each bill.
- 2026-04-06: Placed on the Union Calendar, Calendar No. 512.
Bill Versions
- Stop Child Care Scams Act of 2026 — issued 2026-06-03 — PDF (16 pages)
- No Funds for Repeat Child Care Violations Act — issued 2026-02-26 — PDF (2 pages)
- Stop Child Care Scams Act of 2026 — issued 2026-06-04 — PDF (14 pages)
- No Funds for Repeat Child Care Violations Act of 2026 — issued 2026-04-06 — PDF (4 pages)