[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7721 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7721

  To amend the Child Care and Development Block Grant Act of 1990 to 
        implement an improper payment threshold under such Act.


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                    IN THE HOUSE OF REPRESENTATIVES

                           February 26, 2026

 Mr. Grothman introduced the following bill; which was referred to the 
                  Committee on Education and Workforce

_______________________________________________________________________

                                 A BILL


 
  To amend the Child Care and Development Block Grant Act of 1990 to 
        implement an improper payment threshold under such Act.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Combating Regulatory Abuse, Closing 
Known Deficiencies, and Overseeing Waste Nationwide Act'' or the 
``CRACKDOWN Act of 2026''.

SEC. 2. OVERPAYMENT RATE REQUIRING CORRECTIVE ACTION PLAN; CONDITIONAL 
              INELIGIBILITY.

    Section 658J of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858h) is amended--
            (1) by redesignating subsection (c) as subsection (e), and
            (2) by inserting after subsection (b) the following:
    ``(c) Overpayment Threshold Requiring Corrective Action Plan.--If 
for a fiscal year the overpayment rate of a State is more than 5 
percent of the aggregate amount of payments made to carry out this 
subchapter by such State for such fiscal year, then such State shall 
submit to the Secretary--
            ``(1) for review and approval a corrective action plan to 
        reduce such rate to not more than 5 percent for each subsequent 
        fiscal year; and
            ``(2) such reports as the Secretary may require to show 
        that such State is complying with the requirements of such plan 
        as approved by the Secretary.
    ``(d) Conditional Ineligibility.--If for each of 2 consecutive 
fiscal years the overpayment rate of a State determined under this 
section is more 5 percent, then such State shall be ineligible to 
receive funds under this subchapter unless such State demonstrates to 
the satisfaction of the Secretary that such State for the next fiscal 
year will--
            ``(1) reduce such overpayment rate to not more than 5 
        percent for the next fiscal year; or
            ``(2) make significant progress to comply with the 
        corrective action plan approved under subsection (c).''.
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