CRACKDOWN Act of 2026

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7721 Introduced in House (IH)]

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119th CONGRESS 2d Session H. R. 7721

To amend the Child Care and Development Block Grant Act of 1990 to implement an improper payment threshold under such Act.

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IN THE HOUSE OF REPRESENTATIVES

February 26, 2026

Mr. Grothman introduced the following bill; which was referred to the Committee on Education and Workforce

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A BILL

To amend the Child Care and Development Block Grant Act of 1990 to implement an improper payment threshold under such Act.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Combating Regulatory Abuse, Closing Known Deficiencies, and Overseeing Waste Nationwide Act'' or the ``CRACKDOWN Act of 2026''.

SEC. 2. OVERPAYMENT RATE REQUIRING CORRECTIVE ACTION PLAN; CONDITIONAL INELIGIBILITY.

Section 658J of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858h) is amended-- (1) by redesignating subsection (c) as subsection (e), and (2) by inserting after subsection (b) the following: ``(c) Overpayment Threshold Requiring Corrective Action Plan.--If for a fiscal year the overpayment rate of a State is more than 5 percent of the aggregate amount of payments made to carry out this subchapter by such State for such fiscal year, then such State shall submit to the Secretary-- ``(1) for review and approval a corrective action plan to reduce such rate to not more than 5 percent for each subsequent fiscal year; and ``(2) such reports as the Secretary may require to show that such State is complying with the requirements of such plan as approved by the Secretary. ``(d) Conditional Ineligibility.--If for each of 2 consecutive fiscal years the overpayment rate of a State determined under this section is more 5 percent, then such State shall be ineligible to receive funds under this subchapter unless such State demonstrates to the satisfaction of the Secretary that such State for the next fiscal year will-- ``(1) reduce such overpayment rate to not more than 5 percent for the next fiscal year; or ``(2) make significant progress to comply with the corrective action plan approved under subsection (c).''. <all>