Stop Child Care Fraud Act of 2026

This bill amends the Child Care and Development Block Grant Act of 1990 to significantly enhance program integrity and accountability within state child care assistance programs. It mandates that state plans include a comprehensive description of their internal controls to ensure proper oversight and prevent misuse of funds. States will be required to detail their processes for investigating and recovering fraudulent payments , alongside their procedures for imposing sanctions on clients or providers involved in fraudulent activities. Furthermore, the bill stipulates that states must describe their methods for accurately documenting and verifying eligibility for child care assistance. A key provision also requires states to explain how they utilize data across various state and local agencies that oversee child care providers, fostering better coordination and fraud detection efforts.