Congress bars fraudulent child care providers from federal funds permanently
H.R. 7723 — Safeguarding Taxpayer Dollars in Child Care Act · Filed by Virginia Foxx (R-NC) · 1 cosponsor · Introduced Feb 26, 2026 · Reported out
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What it does
This bill amends federal child care funding laws to permanently bar child care providers found guilty of fraud from receiving federal child care assistance. It applies to both the Child Care and Development Block Grant program and the Child and Adult Care Food Program, and creates a cross-debarment mechanism so that providers debarred from one program are automatically barred from the other.
Why we flagged it
The bill's sole operative mechanism is to establish permanent debarment of fraudulent child care providers from federal funding. It is a straightforward anti-fraud and accountability measure with no hidden provisions or private carve-outs.
What the text implies
- Permanent debarment is irreversible under the bill's text — no provision for reinstatement, rehabilitation, or appeal after the final determination. A provider found guilty decades ago remains barred forever, even if circumstances change.
- Cross-debarment between the two programs means a single fraud finding in one program automatically triggers debarment from the other, potentially affecting a provider's entire revenue stream without a separate adjudication.
The full analysis lists 3 implications of this text.
Who it affects
The bill protects taxpayer dollars and child safety by preventing fraudulent providers from accessing federal funds. Ordinary citizens benefit through reduced waste of public money and reduced risk that their tax dollars subsidize dishonest operators.