Congress proposes changes to federal child care legislation with aim to support program integrity

In March, Congress turned its attention to federal child care funding integrity, considering proposals to modify the Child Care and Development Block Grant (CCDBG), the guiding law for spending Child Care and Development Funds (CCDF). The terms CCDBG and CCDF are often used interchangeably.

Several bills advanced in the House Education and Workforce Committee, and the Senate Health, Education, Labor and Pensions (HELP) Committee established a task force and issued a “Child Care Program Integrity Discussion Draft” proposing significant changes to CCDF. This discussion draft could serve as the basis for legislation to amend CCDBG. While any amendment would require passage by a majority in the House and 60 votes in the Senate, the draft as written could have significant implications for family access and provider participation. The White House has also issued an executive order establishing a broader executive “Task Force to Eliminate Fraud[1].”

Current state and federal safeguards

Any payment system can be susceptible to error and/or misuse. CCDF already requires states to report error rates, including all improper payments—whether due to missing information (such as a parent forgetting to sign their child out when they pick them up from their program), income miscalculations, incorrect hours of care, intentional misuse such as fraud, or other issues.

Federal corrective support is provided to states with high error rates to help address any challenges. In the most recent years for which data are available, 3.55% of CCDF payments were found to be in error, though this varies by state. Federal offices such as the Office of the Inspector General also review program integrity. A 2016 report identified recommendations to address gaps in integrity activities. Additional resources include a Center for Law and Social Policy Brief and Education Counsel Blog.

Congressional action

On March 5, the House Education and Workforce Committee passed 8 bills to strengthen oversight in CCDBG. 6 passed with a Republican majority, and two passed unanimously. These bills must still pass the full House and Senate to become law. The bills include the following proposed changes:

• Requiring corrective action plans above a targeted overpayment rate;
• Increasing federal monitoring of “high risk” states, and;
• Requiring the Secretary of Health and Human Services to sanction states with improper payments.

In the Senate, 7 Republican members of the HELP Committee, led by Senator Cassidy (R-La.), launched an anti-fraud task force in January. On March 17, the task force sent letters to states with error rates above 10% requesting additional information. In April, four more states were contacted. These states are Delaware, Georgia, Michigan, Minnesota, New York, North Carolina, Oregon, and Rhode Island.

On March 18, 2026, the Senate HELP Committee Majority released its “Child Care Program Integrity” discussion draft. The draft acknowledges the importance of CCDBG and its limited reach, serving 1.4 million of 8 million federally eligible families, and proposes increased oversight to ensure funds are directed effectively.

Key proposed changes

In addition to adopting some of the proposed changes included in the House bills, the Senate’s proposed changes would include:

• Requiring income verification every 6 months instead of 12;
• Prohibiting enrollment-based payments and limiting full payment to months with 6 or fewer absences;
• Eliminating presumptive eligibility prior to full documentation, and;
• Requiring states to pay providers prospectively or within 21 days of invoicing.

Potential impacts on families

Some of the proposed changes could reduce access to childcare. For example, presumptive eligibility allows families to begin care while documentation is processed, preventing missed work or training. Removing this could make it harder for families to find and maintain employment. Additionally, annual eligibility determinations allow families to maintain stable care for a full year without repeated paperwork or disruption. More frequent verification and reporting requirements—even when eligibility is unchanged—could increase administrative burden without reducing errors.

Potential impacts on providers

Other proposed changes could strain providers. For example, eenrollment-based payments, common in private pay child care markets when families pay for a complete unit of service such as a week or month of care, help providers manage fixed costs like staffing and space and keep their small businesses or organization stable. Limiting full payment based on attendance (such as capping absences at six per month) could make it hard for providers to meet costs, discourage provider participation, add instability in the market, and ultimately reduce access for families using subsidies.

Next steps

There is broad agreement on the importance of spending CCDBG funds effectively, particularly as many states face waitlists and frozen enrollment. However, additional requirements and potential funding restrictions must be balanced against their real-world impact on families and providers.

The Afterschool Alliance submitted comments to emphasize the need to balance additional oversight while maintaining essential family access. Other proposals, such as the bipartisan Child Care Modernization Act of 2025, would help increase program access and quality.

The discussion draft was open for comments through April 8, but conversations are expected to continue. Stakeholders may contact GOPchildcare@help.senate.gov, members of the HELP Committee, or their representatives to share input on how to strengthen program integrity while supporting access to high-quality care.