On January 5, 2026, the U.S. Department of Health and Human Services (HHS), through its Administration for Children and Families, announced it will rescind rules established during the Biden administration that allowed states to pay child care providers before verifying attendance or delivering care. This decision reverses provisions from the 2024 Child Care and Development Fund rule, which had changed oversight requirements for federally funded state child care programs.
The previous rules required states to make payments to providers in advance, based on enrollment rather than actual attendance. Critics argued this increased the risk of waste, fraud, and abuse within these programs. Some programs affected by these rules are currently under investigation in Minnesota.
Senator Joni Ernst commented on social media: “The fact that *verifying attendance* was not required before handing over millions to child care centers tells you how easy it is for fraudsters to rob taxpayers blind. I’ll continue investigating to ensure that every bad actor is held accountable, and we close every loophole.”
Representative Buddy Carter also weighed in: “Minnesota’s fraud scandal, costing billions of dollars, didn’t happen by accident — it happened on Tim Walz’s watch. When Socialist Democrats are put in leadership, corruption flourishes and taxpayers pay the price. Hardworking Georgians deserve better than Senator Ossoff, who wants to Minnesota our Georgia.”
Organizations have responded positively to HHS's action. The Thriving Families CA Foundation noted that HHS released a proposed rule affecting the Child Care and Development Fund (CCDF), which supports child care assistance in California.
MAHA Action stated: “RFK Jr. and HHS are closing a Biden-era loophole that let states pay child care providers without verifying attendance. This system made fraud inevitable, and we’ve already seen it exposed in programs around the country. Working families deserve their money going to real services, not wasted. By ending this loophole, HHS is making sure taxpayer dollars reach the families they were meant to serve.”
White House Press Secretary Karoline Leavitt remarked: “Biden admin gave child care centers billions without verifying attendance — allowing ‘loopholes and fraud’”.
Eric Daugherty of Right Line News added: “BREAKING: In a huge move, HHS Sec. Bobby Kennedy just CLOSED a loophole that allowed Somali fraudsters to get taxpayer dollars at child cares WITHOUT counting attendance The Biden-era rules were just abolished. Good. THIS IS COMMON SENSE. - States may require payment based on verified attendance rather than enrollment alone. - States may again pay providers after care is delivered. - States are no longer steered toward contracts over parent-directed vouchers, restoring parental choice.” He included a statement from Robert F. Kennedy Jr.: “Loopholes and fraud diverted that money to bad actors instead. Today, we are correcting that failure and returning these funds to the working families they were meant to serve.”
Other commentators highlighted concerns about government oversight of public funds in childcare programs.
The change means states can now require payments based on verified attendance instead of enrollment alone; payments can be made after services are delivered; and there will be greater flexibility for parent-directed vouchers over provider contracts.
