Section 1. Short title
This Act may be cited as the Stop Child Care Fraud Act of 2026.
Section 2. Program integrity and accountability
Section 658E(c)(2) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(2)) is amended by adding at the end the following:
(W) program integrity and accountability
The plan shall include a description of—
(i) the State's internal controls to ensure program integrity and accountability;
(ii) the processes in place—
(I) to investigate and recover fraudulent payments; and
(II) to impose sanctions on clients or providers in response to fraud; and
(iii) the procedures in place to document and verify eligibility.
(W) program integrity and accountability
Such description shall include how the State utilizes data within and across other State and local agencies that have oversight of child care providers that serve children who receive assistance under this subchapter.