Summary
Requires states to fix high rates of incorrect payments for child care aid or risk losing federal money.
What problem does this solve?
Some states make too many mistakes when giving out money for child care, which wastes taxpayer funds. This bill forces states with high error rates to create and follow a plan to fix the problem or they could lose the money.
Who does this affect?
- State government agencies
- Families receiving child care assistance
What does this bill do?
Reference
Text:
Section:
Sec. 2(c)
Header:
Improper payment threshold requiring corrective action plan
Sets a 5% limit on wrong payments
States that give out child care funds will have their rate of wrong payments measured. If this rate is more than 5% in a fiscal year, the state must take action.
Reference
Text:
Section:
Sec. 2(c)(1)
Header:
Improper payment threshold requiring corrective action plan
Requires a plan to fix errors
Requires a state with a wrong payment rate over 5% to send a plan to the Secretary explaining how it will lower the rate to 5% or less.
Threatens loss of funding
Makes a state unable to get child care funds if its wrong payment rate is over 5% for two years in a row.
Offers a way to keep funding
Allows a state to keep its funding if it can prove to the Secretary that it will either get its error rate below 5% or make big steps in following its correction plan.
What is the real world impact?
•
Reduces wasteful government spending
Ensures that federal money for child care is spent correctly by punishing states that make too many payment errors. This helps protect taxpayer dollars from being wasted.
When does this start?
The new rules would apply to payments made by states in the fiscal years after the bill becomes law.