AIMarkup of eight bills targeting fraud in federal child care subsidies

Benefits Fraud and Improper PaymentsHouse Education and Workforce · 2026-03-05 · 119th Congress
The House Education and Workforce Committee met to mark up eight bills addressing fraud, improper payments, and oversight in the Child Care and Development Block Grant (CCDBG) program, prompted in part by a fraud case in Minnesota. Begins at 0:06:59
Transcript
Highlights

Title

Markup of eight bills targeting fraud in federal child care subsidies

Purpose

The House Education and Workforce Committee met to mark up eight bills addressing fraud, improper payments, and oversight in the Child Care and Development Block Grant (CCDBG) program, prompted in part by a fraud case in Minnesota. Republicans argued the bills strengthen accountability and protect taxpayer dollars, while Democrats argued most would burden states and providers without evidence of widespread fraud and criticized HHS Secretary Kennedy for not testifying before the committee. The committee considered amendments and ultimately reported all eight bills, as amended, to the House. Begins at0:06:59

Who spoke

Chairman (unnamed in transcript)0:06:59: Opened the markup, explained CCDBG's purpose and the 62.5% workforce participation rate0:08:17, cited a $325 million improper payment estimate and the roughly 5% national improper payment rate0:09:410:10:07, and said Democrat-led states average more than double the improper payment rate of Republican-led states0:10:07.

Ranking Member (unnamed, Mr. Scott of Virginia)0:11:38: Argued the bills won't lower child care costs or expand supply0:12:07, said there's no evidence of widespread fraud0:12:31, and pressed for HHS Secretary Kennedy to testify0:12:50; walked through opposition to six of the eight bills and support for two (HR 7725, HR 7677)0:13:17; later offered amendments on HR 7720, 7721, 7722, 7723, 7724, and 77260:33:230:50:071:04:031:21:241:33:252:03:07.

Mr. Mesmer of Indiana0:23:03: Introduced HR 7720, the Child Care Payment Integrity and Fraud Accountability Act, requiring states to categorize improper payments as suspected or verified fraud0:24:34.

A committee member (gentle lady from North Carolina)0:25:42: Opposed HR 7720, arguing the bill's new reporting categories don't align with existing federal financial systems and would burden state agencies0:26:16.

Rep. McBath of Georgia0:29:03: Opposed several bills, argued Secretary Kennedy should testify0:29:10, accused Republicans of using fraud claims to undermine popular programs like Head Start0:31:58, and later described her son Jordan's death in opposing HR 7723's debarment provisions1:15:24.

Mr. Growthman of Wisconsin0:38:57: Introduced HR 7721 (CRACKDOWN Act), setting a 5% improper payment threshold, citing Wisconsin's under-1% rate after 2010 reforms under Gov. Walker0:39:590:41:09.

Rep. Owens (via yield to Mr. Growthman) / Mr. Growthman rebuttal0:45:11: Argued fiscal responsibility isn't political, noting the federal government borrows 26% of its budget0:45:14.

Rep. Adams0:46:22: Opposed HR 7721 and HR 7722, arguing fraud in CCDBG is rare and the real crisis is affordability and access, citing the Child Care for Working Families Act0:48:34.

Mr. Ander of Missouri (Honor)0:57:03: Introduced HR 7722, the Child Care Integrity Monitoring Act, to codify a three-year audit cycle and designate high-risk states0:57:46.

Mr. Scott of Virginia (detailed floor remarks)1:00:54: Criticized HR 7722 for undefined "high risk" criteria and noted the administration fired 12 inspectors general1:01:50; raised concerns the bill could let the secretary demand data such as voter rolls1:02:20.

Mr. Donnier of California1:04:23: Offered an amendment requiring Secretary Kennedy to testify on the "defend the spend" policy and HHS Office of Child Care staffing cuts1:04:54, noting five states including California had funds frozen1:05:50.

Mr. Jim of Missouri1:08:12: Opposed Donnier's amendment, saying he supports Kennedy testifying but not codifying his schedule1:08:22.

Miss Fox of North Carolina1:10:24: Introduced HR 7723, the Safeguarding Taxpayer Dollars in Child Care Act, citing the $250 million Feeding Our Future fraud case in Minnesota1:11:19 and proposing reciprocal debarment between CCDBG and CACFP1:12:20.

Mr. Wilson of South Carolina1:28:11: Introduced HR 7724, the No Waivers for Fraud Act, to strike the secretary's authority to waive sanctions on non-compliant states1:29:15.

Mr. Rouley of Ohio1:38:15: Introduced HR 7725, the Stop Child Care Fraud Act, requiring states to describe cross-agency data use to prevent fraud, citing Ohio's own cross-agency tools1:38:421:39:10.

Miss Lee of Pennsylvania1:44:22: Offered an amendment to cap child care co-pays at 7% of income and provide free care below 85% of state median income1:45:43; called the underlying fraud premise a "solution in search of a problem" tied to a viral YouTube video1:44:52.

Mr. Owens of Utah1:50:26: Introduced HR 7677, the Closing the Provider Fraud Gap Act, directing GAO to study fraud prevention across CCDBG, CACFP, and Head Start1:51:20.

Mr. Manion of New York1:54:13: Offered an amendment for a broader GAO study on child care shortage root causes and CACFP's role1:54:41.

Miss Miller of Illinois1:59:12: Introduced HR 7726, the No Funds for Repeat Child Care Violations Act, changing "may" to "shall" for withholding funds from non-compliant states1:59:57.

Key moments

The chairman cited a 2020 GAO report estimating $325 million in gross improper CCDBG payments against roughly $5 billion appropriated at the time, versus over $8 billion appropriated today with a near-5% improper payment rate0:09:410:10:07.

Mr. Scott revealed HR 7723's origin: a self-described independent journalist's video claiming a Minnesota daycare was defrauding the program, later found by the state to be operating normally with doors closed to keep strangers out, which nonetheless triggered a federal funding freeze0:52:28.

Scott noted the "big ugly bill" added $3.5 trillion in debt and that every Democrat voted against it, rebutting Growthman's fiscal argument0:50:41.

Multiple Democrats (Scott, Adams, McBath) repeatedly noted the Office of Child Care has lost more than half its oversight staff in the past year, and that the administration fired 12 inspectors general, questioning who would conduct the added oversight required by the bills0:15:241:01:221:32:09.

Scott's amendment to HR 7724 to redirect funds toward increasing child care supply was ruled non-germane by the chair and ultimately withdrawn1:35:191:36:07.

Scott's amendment to HR 7726 seeking to bar ICE enforcement at child care centers was ruled outside the committee's jurisdiction and voted down2:03:442:06:14.

Miss Fox stated her position that the federal government should not fund child care programs at all, preferring debarment penalties over added HHS staff1:24:591:26:14.

Final recorded votes: HR 7720 (19-15), HR 7721 (19-15), HR 7722 (20-15), HR 7723 (20-15), HR 7724 (20-15), HR 7725 (35-0), HR 7677 (35-0), and HR 7726 (20-15) all passed and were ordered reported to the House3:57:01.

HR 7725 and HR 7677 passed unanimously (35-0), in contrast to the party-line votes on the other six bills4:08:234:10:21.

McBath connected the debarment bill's grant of unilateral secretary discretion to her son Jordan's killing and the subsequent false justifications offered, arguing against concentrating punitive power without due process1:15:24.

Metadata

Official titleH.R. 7720, the "Child Care Payment Integrity and Fraud Accountability Act"; H.R. 7721, the "Combating Regulatory Abuse, Closing Known Deficiencies, and Overseeing Waste Nationwide (CRACKDOWN) Act"; H.R. 7722, the "Child Care Integrity Monitoring Act"; H.R. 7723, the "Safeguarding Taxpayer Dollars in Child Care Act"; H.R. 7724, the "No Waivers for Fraud Act"; H.R. 7725, the "Stop Child Care Fraud Act"; H.R. 7677, the "Closing the Provider Fraud Gap Act"; H.R. 7726, the "No Funds for Repeat Child Care Violations Act"
CommitteeHouse Education and Workforce
Chamber / CongressHouse · 119th Congress
Date2026-03-05
TypeMarkup
Witnesses
(none listed in event metadata)
Videoyoutube
Transcript502 caption blocks · 18,981 words · 4:13:11 runtime
EventCongress.gov 119030