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CRACKDOWN Act of 2026: Limiting Overpayments in Child Care Funding

This bill sets a 5% limit on improper payments for state child care programs to prevent waste. States exceeding this limit must fix their systems or risk losing federal funding for child care services.
Key points
Sets a 5% maximum threshold for improper payments in child care grants.
Requires states to submit and follow corrective action plans if they exceed the error limit.
Threatens loss of federal funding for states with high overpayment rates for two consecutive years.
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Status: Introduced
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Additional Information
Print number: 119_HR_7721
Sponsor: Rep. Grothman, Glenn [R-WI-6]
Process start date: 2026-02-26