House passes Mary Miller's bill to stop childcare fraud

“The Stop Childcare Scams Act builds on those actions by enforcing program integrity to ensure every state is compliant with federal requirements,” Miller said.

Miller argued the Childcare and Development Block Grant program has long been vulnerable to improper payments and fraud. Citing a 2020 report from the Government Accountability Office, she said there were an estimated $325 million in improper payments nationwide during fiscal year 2019.

“Since 2002, the Block Grant has been identified as a federal program at risk for improper payments,” Miller said. “The Office of Management and Budget, the GAO, and HHS have all consistently warned that changes are needed to protect the program from fraud and abuse.”

The Illinois congresswoman also pointed to a 2024 case involving the owner of several Chicago childcare centers who was sentenced to prison after stealing more than $3 million in taxpayer funds.

“In this case, the state failed to address fraud or repeated noncompliance,” Miller said. “This is unacceptable, and there must be real consequences.”

According to Miller, the legislation combines several Republican-backed reforms approved by the House Education and Workforce Committee. Among its provisions are requirements for states to assess fraudulent payments, lower the threshold that triggers scrutiny of improper payments, require regular audits of state childcare assistance programs and prevent providers found guilty of fraud from receiving future grant funds.

The bill also would require the U.S. Department of Health and Human Services to withhold funds from states that repeatedly fail to address fraud, abuse and serious violations within childcare assistance programs. Supporters say the legislation would make enforcement mandatory rather than discretionary.

“Every dollar lost to fraud is a dollar that doesn't support working families,” Miller said on the House floor. “Fraud harms our families. It harms our workforce.”

The legislation passed the House on June 3 after advancing through the House Education and Workforce Committee as part of a broader Republican effort to increase oversight of federal childcare spending. Supporters argue the measure will help ensure assistance reaches eligible families and protect taxpayer dollars from misuse. 

Opponents of the bill have argued that some of its enforcement provisions could lead to funding reductions for states over administrative errors and could make it harder for low-income families to access childcare assistance. Critics contend the legislation places a greater emphasis on penalties than on expanding childcare access. 

Miller said accountability measures are necessary to maintain public trust in the program.

“Americans should have confidence that their federal taxpayer dollars are being used responsibly and carefully,” she said. “Ensuring accountability for these dollars is not optional.”

The measure now heads to the Senate for consideration.