[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7723 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7723

  To amend the Child Care and Development Block Grant Act of 1990 to 
    debar child care providers that committed fraud from receiving 
      financial assistance under the Act, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 26, 2026

   Ms. Foxx 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 
    debar child care providers that committed fraud from receiving 
      financial assistance under the Act, and for other purposes.

    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 ``Safeguarding Taxpayer Dollars in 
Child Care Act''.

SEC. 2. PREVENTING FRAUD IN THE CHILD CARE AND DEVELOPMENT BLOCK GRANT 
              PROGRAM.

    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:
            ``(3) Determination of fraud.--
                    ``(A) Investigation.--The Secretary shall 
                investigate fraud with respect to financial assistance 
                available under this subchapter.
                    ``(B) Debarment.--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.
                    ``(C) Providers debarred from child and adult care 
                food program.--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.
                    ``(D) Final determination of fraud definition.--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 under 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.''.

SEC. 3. PREVENTING FRAUD IN THE CHILD AND ADULT CARE FOOD PROGRAM.

    Section 17(d)(5) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1766(d)(5)(E)) is amended--
            (1) by redesignating subparagraph (E) as subparagraph (F); 
        and
            (2) by inserting after subparagraph (D) the following:
                    ``(E) Termination due to fraud.--
                            ``(i) Debarment.--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.
                            ``(ii) Providers debarred from child care 
                        and development block grant 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)(A) of such Act, the Secretary shall 
                        permanently debar such institution or family or 
                        group day care home from participating in the 
                        program.
                            ``(iii) Final determination of fraud 
                        definition.--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.''.
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