H.R. 7723

119 HR 7723 IH: Safeguarding Taxpayer Dollars in Child Care Act
 U.S. House of Representatives
 2026-02-26
 text/xml
 EN
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 I  119th CONGRESS  2d Session  H. R. 7723  IN THE HOUSE OF REPRESENTATIVES   February 26, 2026   Ms. Foxx  introduced the following bill; which was referred to the  Committee on Education and Workforce    A BILL
To amend the Child Care and Development Block Grant Act of 1990 to debar child care providers that committed fraud from receiving financial assistance under the Act, and for other purposes.
1.
Short title
This Act may be cited as the   Safeguarding Taxpayer Dollars in Child Care Act  .
2.
Preventing fraud in the Child Care and Development Block Grant program
Section 658I(b) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858g(b) ) is amended—
(1)
by redesignating paragraph (3) as paragraph (4); and
(2)
by inserting after paragraph (2) the following:
(3)
Determination of fraud
(A)
Investigation
The Secretary shall investigate fraud with respect to financial assistance available under this subchapter.
(B)
Debarment
In the case that the Secretary makes, or finds that there has been, a final determination of fraud against a child care provider that received financial assistance available under this subchapter, the Secretary shall permanently debar such child care provider from receiving such financial assistance.
(C)
Providers debarred from Child and Adult Care Food Program
In the case that a child care provider has been debarred from participating in the Child and Adult Care Food Program under section 17 of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1766 ) in accordance with subsection (d)(5)(E)(i) of such section, the Secretary shall permanently debar such child care provider from receiving financial assistance under this subchapter.
(D)
Final determination of fraud definition
In this paragraph, the term  final determination of fraud  means a determination reached in an administrative order or as part of a judicial decision, for which any rights to review or appeal have been exhausted or waived, that a child care provider—
(i)
knowingly submitted a false statement or documentation to obtain financial assistance available under this subchapter;
(ii)
misrepresented ownership of, enrollment at, attendance at, or services provided through a program of child care services, or the eligibility of the provider to provide such services, to obtain such financial assistance;
(iii)
to obtain such financial assistance, operated without the State licensing under section 658E(c)(2)(F) and without receiving an exception to such licensing;
(iv)
made a knowing and improper expenditure of such financial assistance; or
(v)
engaged in any other conduct related to such financial assistance that constituted fraud under Federal or State law.
 .
3.
Preventing fraud in the Child and Adult Care Food Program
Section 17(d)(5) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1766(d)(5)(E) ) is amended—
(1)
by redesignating subparagraph (E) as subparagraph (F); and
(2)
by inserting after subparagraph (D) the following:
(E)
Termination due to fraud
(i)
Debarment
In the case that the participation of an institution or family or group day care home under the program is terminated due to a final determination of fraud, the Secretary shall permanently debar such institution or family or group day care home from participating in the program.
(ii)
Providers debarred from Child Care and Development Block Grant program
In the case that an institution or family or group day care home has been debarred from receiving financial assistance under the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9857 et seq. ) in accordance with section 658I(b)(3)(A) of such Act, the Secretary shall permanently debar such institution or family or group day care home from participating in the program.
(iii)
Final determination of fraud definition
In this subparagraph, the term  final determination of fraud  means a determination reached in accordance with the procedures and requirements of this section, for which any rights to review or appeal have been exhausted or waived, that an institution or family or group day care home—
(I)
knowingly submitted a false statement or documentation to obtain funds disbursed under subsection (f)(1)(A);
(II)
misrepresented ownership, enrollment, attendance, or services in connection with the operation of the program by such institution or family or group day care home, or the eligibility of such institution or family or group day care home to operate the program, to obtain such funds;
(III)
made a knowing and improper expenditure of such funds; or
(IV)
engaged in any other conduct related to such funds that constituted fraud under Federal or State law.
 .