Bill would end waivers for child care funding sanctions on states

What does this do?

The "No Waivers for Fraud Act of 2026" would remove the federal government's authority to waive or lift sanctions imposed on states found noncompliant with Child Care and Development Block Grant program rules. It does not change what counts as a violation or how sanctions are decided, only whether they can later be forgiven. Waivers for other unrelated requirements, like reporting rules, would still be allowed.

Who does it affect?

State governments that administer child care assistance programs, especially those found to have committed fraud or mismanagement, would be directly affected. The Department of Health and Human Services and low-income families relying on subsidized child care could be indirectly affected.

Why does it matter?

Sanctions on states would become more permanent and less flexible, reducing federal agencies' discretion in responding to violations. This could lead to funding disruptions for child care programs if a state loses access to federal dollars.

Where does it stand?