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Requires State lead agencies that administer Child Care and Development Block Grant (CCDBG) funds to pay child care providers based on verified attendance records or another reasonable verification method instead of paying on enrollment alone. Also clarifies that nothing in the law requires agencies to pay providers before services are delivered, allowing payment after services are provided.
The bill tightens fiscal accountability and reduces overpayment by tying child-care payments to verified attendance, but it shifts financial risk and administrative burden onto providers, parents, and state agencies.
State governments and taxpayers will pay providers only for verified attendance and can pay after services are provided, reducing overpayments, lowering waste, and improving fiscal accountability.
State agencies and children will benefit from more accurate attendance tracking, improving program integrity and providing better data for policy planning and oversight.
Child-care providers, especially small businesses and nonprofits, may face cash-flow strain because payments could be made only after services are provided.
Parents and families may face instability if providers reduce enrollment flexibility or limit slots to avoid unpaid absences, making child care less reliable.
State governments will incur additional administrative costs and burdens to implement attendance verification systems and new payment processes.
Introduced February 12, 2026 by Rafael Edward Cruz · Last progress February 12, 2026