Sen. Moody Introduces Bill to Ban Fraudulent Child Care Providers and Penalize States with High Error Rates
The Senate Committee on Health, Education, Labor, and Pensions received this bill on June 16, 2026, and it has not moved since that date. This proposal is now stalled because a newer version of the bill is the one moving forward. Lawmakers are focusing their efforts on that successor bill instead of this one.
Companion bill: House Passes Stop Child Care Scams Act to Ban Fraudulent Providers from Federal Programs →A companion or newer version of this bill is the one advancing instead.
While fraud prevention is generally popular, the threat of pulling all child care funding from a state is a very aggressive penalty that may face pushback from both parties.
This bill’s path across every version that has carried it.
Companion
Identical companion bill H.R. 7726 (119th) was introduced in the other chamber.
H.R. 7726 (119th) →Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Child care providers are typically small businesses, and this bill creates both risks and potential benefits for them. Honest providers could benefit from a more level playing field as fraudulent competitors are permanently removed. However, all providers would face stricter documentation requirements and eligibility verification processes, adding administrative burden. Providers found guilty of fraud through a final legal determination would be permanently banned from federal child care and food programs with no path to reinstatement.
“In the case that the Secretary makes, or finds that there has been, a final determination of fraud against a child care provider that received financial assistance available under this subchapter, the Secretary shall permanently debar such child care provider from receiving such financial assistance.”
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
U.S. Sen. Ashley Moody is pushing the Stop Child Care Scams Act to establish integrity provisions for the Child Care and Development Block Grant. The measure mandates that HHS withhold funds from states failing to follow anti-fraud rules and institutes permanent debarment for convicted fraudsters.
The bill includes several reforms to federal childcare programs, including new requirements for states to track and report fraud as a separate category of improper payment, regular audits, and funding restrictions for states that allow high rates of fraud.
The Stop Child Care Scams Act aims to insert tough new oversight measures into the Child Care and Development Block Grant program by directly penalizing states. The bill's core mechanism shifts federal policy from optional enforcement to mandatory financial penalties for non-compliant states.
No votes recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Stop Child Care Scams Act of 2026
Analysis generated by AI. Always verify with official sources.