House committee advances bills targeting child care assistance program fraud

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Tim Walberg, Chairman of The House Education and Workforce committee | Official website

House committee advances bills targeting child care assistance program fraud

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The House Education and Workforce Committee has approved eight bills designed to address fraud, improve oversight, and safeguard federal child care assistance funds. The legislative package aims to ensure that resources intended for children and working families are not lost due to fraudulent activities or waste.

Committee Chairman Tim Walberg (R-MI) stated: “Every dollar lost to fraud is a dollar that doesn’t help a working parent care for a child or put food on the table. Most states and providers do the right thing. But when there are gaps in oversight, bad actors take advantage. In Minnesota, we’ve seen fraudsters use ‘learing centers’ to steal billions from hardworking taxpayers—and innocent children. This kind of abuse is deplorable and makes victims of our nation’s most vulnerable. That is why the Committee is acting. These bills close those gaps, set clear standards, and make accountability the rule not the exception. Bottom line, protecting these programs means protecting the families who rely on them.”

The proposed legislation includes several measures:

- H.R. 7720 would require states to report fraud separately rather than including it with general payment errors.

- H.R. 7721 sets a specific threshold for improper payments at five percent; states exceeding this must take corrective action.

- H.R. 7722 mandates a formal three-year audit cycle and increased scrutiny for repeat offenders.

- H.R. 7723 prevents providers banned from one federal program for fraud from moving to another.

- H.R. 7724 removes the option to waive sanctions after cases of fraud or serious violations.

- H.R. 7725 seeks better data sharing between state agencies to detect early signs of fraud.

- H.R. 7677 directs the Government Accountability Office to identify weaknesses in direct provider payments and recommend prevention strategies.

- H.R. 7726 would withhold funds from states that do not address repeated violations or instances of fraud.

The House Education and Workforce Committee oversees federal programs related to education, labor, health, and workforce development (official website). The committee also shapes policy on matters such as student loans and worker protections (official website). It operates within the legislative branch with jurisdiction over education and labor issues (official website).

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