Stop Child Care Funding Fraud Act of 2026

This bill, known as the Stop Child Care Funding Fraud Act of 2026, requires states to report on the rate of improper payments made with federal child care funds and outlines specific penalties for high error rates. States must submit reports by June 30 of each program period detailing payment errors and plans to reduce them, with penalties ranging from 5 to 15 percent funding reductions if improper payment rates exceed 6 percent. The law also mandates that states create corrective action plans when error rates are too high and requires the Secretary to publish state-by-state data on payment accuracy in annual reports. These provisions aim to increase transparency and accountability in how states manage federal child care block grant money.