Safeguarding Taxpayer Dollars in Child Care Act of 2026

This Act may be cited as the Safeguarding Taxpayer Dollars in Child Care Act of 2026.

Section 658I(b) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858g(b)) is amended—

(1) by redesignating paragraph (3) as paragraph (4); and

(2) by inserting after paragraph (2) the following:

The Secretary shall investigate fraud with respect to financial assistance available under this subchapter.

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.

In the case that a child care provider has been debarred from participating in the Child and Adult Care Food Program under section 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766) in accordance with subsection (d)(5)(E)(i) of such section, the Secretary shall permanently debar such child care provider from receiving financial assistance under this subchapter.

In this paragraph, the term final determination of fraud means a determination reached in an administrative order or as part of a judicial decision, for which any rights to review or appeal have been exhausted or waived, that a child care provider—

(i) knowingly submitted a false statement or documentation to obtain financial assistance available under this subchapter;

(ii) misrepresented ownership of, enrollment at, attendance at, or services provided through a program of child care services, or the eligibility of the provider to provide such services, to obtain such financial assistance;

(iii) to obtain such financial assistance, operated without the State licensing described in section 658E(c)(2)(F) and without receiving an exception to such licensing;

(iv) made a knowing and improper expenditure of such financial assistance; or

(v) engaged in any other conduct related to such financial assistance that constituted fraud under Federal or State law.

(2) .

Section 17(d)(5) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(d)(5)) is amended—

(1) by redesignating subparagraph (E) as subparagraph (F); and

(2) by inserting after subparagraph (D) the following:

In the case that the participation of an institution or family or group day care home under the program is terminated due to a final determination of fraud, the Secretary shall permanently debar such institution or family or group day care home from participating in the program.

In the case that an institution or family or group day care home has been debarred from receiving financial assistance under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.) in accordance with section 658I(b)(3)(B) of such Act, the Secretary shall permanently debar such institution or family or group day care home from participating in the program.

In this subparagraph, the term final determination of fraud means a determination reached in accordance with the procedures and requirements of this section, for which any rights to review or appeal have been exhausted or waived, that an institution or family or group day care home—

(I) knowingly submitted a false statement or documentation to obtain funds disbursed under subsection (f)(1)(A);

(II) misrepresented ownership, enrollment, attendance, or services in connection with the operation of the program by such institution or family or group day care home, or the eligibility of such institution or family or group day care home to operate the program, to obtain such funds;

(III) made a knowing and improper expenditure of such funds; or

(IV) engaged in any other conduct related to such funds that constituted fraud under Federal or State law.

(2) .