BGOV Bill Analysis: H.R. 7726, Prevent Childcare Grant Fraud

June 2, 2026, 2:42 PM UTC

States would face new restrictions and requirements aimed at minimizing fraudulent payments through the Child Care and Development Block Grant program under a modified version of H.R. 7726.

The bill would require additional federal reviews over how states administer their childcare assistance programs and bar states from receiving grant funds if their improper payment rate exceeds 5% for two consecutive years. Childcare providers who defraud childcare assistance grants or childcare food assistance would be permanently disbarred from receiving funds from either program.

The Health and Human Services Department distributes mandatory childcare assistance payments and discretionary block grants through the ...

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