Payment Integrity Act

Key Points

• This bill, introduced by Senator Cruz, would change how states pay child care providers who receive federal funding. Instead of paying based on how many kids are signed up for a program, states would have to pay based on how many kids actually show up and attend.
• States would be required to check attendance records to prove children were actually there. This is intended to make sure taxpayer money is only spent on services that are actually being used by families.
• The bill also clarifies that states do not have to pay child care centers in advance. They are allowed to wait and send payments after the child care services have already been provided.
• This change could affect child care centers that rely on steady monthly payments to cover their fixed costs, like rent and staff salaries. If children are absent due to sickness or family travel, the center might receive less money than they do under current rules.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.