WASHINGTON, D.C. (WTVB) – The U.S. House of Representatives passed H.R. 7726, the Stop Child Care Scams Act, a sweeping legislative package aimed at rooting out rampant fraud and strengthening oversight within federal child care assistance programs.
House Education and Workforce Committee Chairman Tim Walberg from Michigan’s 5th District championed the bill’s passage on the House floor, emphasizing that the legislation provides critical safeguards to ensure that taxpayer dollars directly support low-income working families rather than enriching corrupt actors.
Walberg cited staggering instances of abuse—such as shell “learning centers” that collected millions in government funding while sitting completely empty as the driving force behind the congressional crackdown.
The newly passed legislation synthesizes eight accountability reforms designed to restore structural integrity to the Child Care and Development Block Grant (CCDBG) program.
Under the oversight rules championed by Walberg’s committee, states will now be legally required to distinctly track and report fraud data, maintain a strict five percent improper payment threshold, and establish interconnected data-sharing networks to prevent fraudulent providers from jumping between different federal assistance programs.
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