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New Rules to Combat Fraud in Child Care and Health Care Programs

This Act introduces stricter payment rules for childcare providers, making payments dependent on actual attendance rather than just enrollment. It also requires agencies to monitor sudden spikes in healthcare spending to quickly detect and recover fraudulent public funds.
Key points
Childcare providers will be paid based on recorded attendance instead of just enrollment.
Providers must maintain attendance records for 7 years for potential federal audits.
A 100% annual increase in healthcare spending or providers in a specific zip code will trigger a fraud notification.
Programs showing a 400% increase in spending over 5 years will face mandatory audits.
Government agencies are required to implement new guidance to recover all improper payments.
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Status: Introduced
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Additional Information
Print number: 119_S_3727
Sponsor: Sen. Ernst, Joni [R-IA]
Process start date: 2026-01-29