Sen. Cassidy Expands Child Care Fraud Probe to New York, Michigan and Oregon
Senate HELP Committee Chair Bill Cassidy, R‑La., is extending his investigation into alleged fraud and improper payments in federally funded child care assistance programs beyond Minnesota to New York, Michigan and Oregon, all led by Democratic governors. In letters to Govs. Kathy Hochul, Gretchen Whitmer and Tina Kotek, Cassidy cites Department of Health and Human Services data showing payment error rates above 17% in New York in FY 2024, above 12% in Michigan in FY 2025 and above 35% in Oregon in FY 2024, and says figures that high raise serious concerns about fraud prevention and program access. He’s demanding detailed records by March 30, including each state’s improper-payment history from FY 2016–2025, on‑site monitoring practices, anti‑fraud measures, eligibility verification and audits or investigations that uncovered fraud or improper payments. The move follows his earlier push targeting Minnesota Gov. Tim Walz over a major child care fraud scandal and signals a broader Republican effort to scrutinize how blue states administer federal child care subsidies. The stakes are significant for families relying on these programs and for state agencies that could face tighter federal oversight or potential clawbacks if systemic failures are documented.
📌 Key Facts
- Sen. Bill Cassidy, as chair of the Senate HELP Committee, has expanded his child care fraud investigation from Minnesota to New York, Michigan and Oregon.
- Cassidy’s letters cite HHS data showing payment error rates over 17% (NY, FY 2024), over 12% (MI, FY 2025) and over 35% (OR, FY 2024).
- He is requiring the governors to respond by March 30 with detailed histories of improper payment rates since FY 2016, descriptions of monitoring and anti‑fraud controls, and records of audits and investigations into fraud.
📊 Relevant Data
In FY2023, the CCDF program served an average of 53,100 families and 90,800 children monthly in New York, 22,200 families and 37,800 children in Michigan, and 10,100 families and 16,500 children in Oregon.
FY 2023 Preliminary Data Table 1 - Average Monthly Adjusted Number of Families and Children Served — Administration for Children and Families (ACF)
In FY2024, New York received $393,423,957 in CCDBG funding, Michigan received $234,414,412, and Oregon received $79,771,410.
CCDBG FY2024 State-by-State Appropriations Distribution Estimates and Increases — Center for Law and Social Policy (CLASP)
In FY2022, nationally, 54% of Black/African American (non-Hispanic) children receiving CCDF assistance were below the poverty threshold, compared to 33% of Black/African American children in the general population; for White (non-Hispanic) children, it was 52% in CCDF versus 11% in the general population.
Child Care and Development Fund (CCDF) Report on States' Priorities for Child Care Funds Under the Consolidated Appropriations Act, 2021 — Administration for Children and Families (ACF)
Analysis by the Office of Child Care found that 40% of improper payments in CCDF for 2023 were due to insufficient documentation.
Congress Considers Bills on Child Care Fraud — EducationCounsel
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