Sponsors
The bill increases federal oversight to reduce improper payments and direct more CCDBG dollars to eligible families, but it raises administrative costs for States and risks reduced benefits or added barriers for some families if States fail to comply or tighten eligibility.
Eligible low-income families (parents and children) retain more CCDBG child care assistance because States with high improper payment rates must submit corrective plans and reduce improper payments, helping more dollars reach intended recipients.
State administration of CCDBG will face stronger federal oversight and accountability through Secretary-approved corrective plans and required progress demonstrations, which can improve program management and reduce misuse of funds.
By targeting and reducing improper payments, the bill can reduce waste and help protect the overall CCDBG funding pool for child care services.
Families in States that fail to lower improper payment rates risk reduced CCDBG funding, which could result in fewer child care subsidies and reduced access to care for children and parents in those States.
Eligible families may face tightened eligibility checks or more burdensome verification processes as States try to avoid improper payments, causing delays or barriers to receiving benefits.
State agencies administering CCDBG will incur increased administrative burden and costs to comply with new reporting and corrective-plan requirements.
Based on analysis of 2 sections of legislative text.
Conditions federal child care block grant funding on state improper payment rates: >5% requires corrective plans and reporting; two consecutive years >5% can lead to ineligibility unless corrected or significant progress is shown.
Introduced February 26, 2026 by Glenn Grothman · Last progress February 26, 2026
Requires states that receive federal child care block grant funds to take corrective action when their improper payment rate for the program exceeds 5% in a fiscal year. States with rates above 5% must submit an approved corrective action plan and required reports; if the rate exceeds 5% for two consecutive years, the state can be made ineligible for funds unless it shows it will reduce the rate to 5% or make significant progress the following year. Also adjusts the existing statute’s subsection numbering to accommodate the new requirements. The change increases federal oversight and creates a funding consequence intended to reduce improper payments in the child care program.