Story perspectives

Senators Propose Reform to Curb Childcare Funding Fraud

2/13/2026

Summary

Story summary

Senators Ted Cruz (R-TX), Mike Lee (R-UT), and Rick Scott (R-FL) unveiled the Payment Integrity Act to reform federal childcare funding distribution.
The legislation would shift funding from enrollment-based to attendance-based billing, citing "mass fraud" in Minnesota where providers received payments without verifying attendance.
The act would reverse a 2024 Biden administration rule.
It would incorporate attendance-based billing into the Child Care and Development Block Grant Act, reducing opportunities for fraudulent daycare providers to exploit the system.

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Story summary

Senators Ted Cruz (R-TX), Mike Lee (R-UT), and Rick Scott (R-FL) unveiled the Payment Integrity Act to reform federal childcare funding distribution.
The legislation would shift funding from enrollment-based to attendance-based billing, citing "mass fraud" in Minnesota where providers received payments without verifying attendance.
The act would reverse a 2024 Biden administration rule.
It would incorporate attendance-based billing into the Child Care and Development Block Grant Act, reducing opportunities for fraudulent daycare providers to exploit the system.