Senate Republicans Broaden Child Care Fraud Investigation

Senate Republicans are widening their investigation into child care fraud, moving beyond Minnesota to include New York, Michigan, and Oregon. This initiative is led by Senate Health, Education, Labor, and Pensions Chairman Bill Cassidy from Louisiana.

Initially, Cassidy focused on the Minnesota fraud case involving Governor Tim Walz, pressing him to produce receipts for various child care financial assistance programs tied to the scandal.

In a recent letter to Democratic governors, including Kathy Hochul, Gretchen Whitmer, and Tina Kotek, Cassidy accused their states of managing or having overseen excessive improper payments in state-run child care programs.

“The level of mistakes is alarming, raising red flags about fraud prevention and access to crucial child care services. It underscores the urgent need for better oversight and transparency in these programs,” Cassidy stated in his correspondence.

According to data from the Department of Health and Human Services, the error rate for payments in New York exceeded 17% for fiscal year 2024, while Michigan recorded over 12% for fiscal year 2025. Oregon’s rate was notably high at over 35% for fiscal year 2024.

Cassidy has requested similar records from the governors, including details on the frequency of on-site inspections of child care facilities receiving federal funding. The deadline for responses is set for March 30.

He is seeking an account of each state’s unreasonable payment rates from 2016 to 2025, along with explanations for any significant shifts. Furthermore, he has inquired about the anti-fraud measures implemented since 2016, their effectiveness, as well as how federal funds are being utilized and monitored.

“It’s crucial to uphold the integrity of child care assistance programs—not just to protect taxpayer money, but to enhance public trust in the systems intended to aid families and children,” Cassidy expressed in his letter.