No Waivers for Fraud Act of 2026

This bill removes the ability for states to avoid penalties when found guilty of fraud in child care programs. It directly affects states receiving federal child care funding who commit fraud, as they can no longer request waivers for sanctions. The key mechanism is amending a specific section of the Child Care and Development Block Grant Act to delete all references to "sanction or" in the penalty provisions, ensuring penalties apply automatically without waiver options. This change makes the enforcement of fraud penalties more consistent and direct.