Sponsors (2)
Introduced February 26, 2026 by Virginia Ann Foxx · Last progress February 26, 2026
The bill tightens enforcement to protect children and federal dollars by permanently barring providers who commit fraud, but that stricter, permanent approach can reduce local service availability and impose heavy burdens and fairness concerns on small providers.
Children and families are more protected because providers found to have fraudulently obtained federal child care or nutrition funds are permanently barred, reducing the chance that children will be served by fraudulent providers.
Taxpayers and low-income recipients benefit because permanent exclusion of knowingly fraudulent providers reduces the risk of federal nutrition and child care funds being misspent.
Program integrity and accountability are strengthened by aligning debarment standards across CACFP and CCDBG, creating a more consistent enforcement regime for federal child care and nutrition programs.
Parents, children, and low-income individuals may lose access to local child care slots and meal sites because permanently barring providers can reduce the local supply of CACFP- and CCDBG-participating providers.
Small child care and meal providers face greater financial risk, compliance costs, and legal exposure (including from broad fraud definitions), which could discourage participation and lead to closures.
Permanent debarment after a single final fraud determination removes opportunities for rehabilitation or reinstatement and may be disproportionate for less severe or isolated errors, raising fairness and justice concerns for affected providers.
Based on analysis of 3 sections of legislative text.
Requires investigations and makes providers permanently ineligible for CCDBG and CACFP funds after a defined "final determination of fraud," and links debarment across both programs.
Imposes a federal fraud enforcement rule across two child nutrition and child care programs that requires investigations of suspected fraud, defines what counts as a “final determination of fraud,” and makes providers permanently ineligible (debarred) from receiving Child Care and Development Block Grant (CCDBG) and Child and Adult Care Food Program (CACFP) funds if they have such a determination or are already debarred under the paired program. The bill links debarment across the two programs so a finding in one results in permanent disqualification from the other. The changes mainly add definitions and mandatory permanent debarment consequences for specified misconduct (false statements, misrepresentation, operating without required licensing, improper expenditures, or other fraud) and require agencies to investigate and apply debarment rules consistent with an adverse final determination after appeals are exhausted or waived.