AUSTIN — Texas Gov. Greg Abbott directed state agencies Monday to implement stronger anti-fraud measures for the state’s Child Care Services program, which provides financial assistance for child care to eligible low-income families.
In a letter to the Texas Workforce Commission (TWC) and Health and Human Services Commission (HHSC), Abbott instructed the agencies to identify “high-risk providers,” increase site visits, and review program data to prevent potential fraud. He also called for verification of enrollment numbers and enhanced access to an online portal and hotline for reporting suspected fraud.
Abbott cited federal concerns after the Trump administration froze funding to similar programs following a viral video alleging widespread fraud in Minnesota daycare centers. He noted that Texas’ improper payment rate is 0.43 percent, compared with roughly 11 percent in Minnesota, but said additional safeguards are necessary.
The letter requires state agencies to submit any fraud investigations to prosecutors as appropriate. HHSC and TWC are expected to provide a progress report by the end of January and a final report by Feb. 27.
Abbott emphasized that TWC and HHSC already conduct routine audits and in-person visits, adding that “waste, fraud, and abuse of taxpayer dollars will not be tolerated and will be punished to the fullest extent of the law in Texas.”
The federal Department of Health and Human Services announced Monday that states may implement payment based on verified attendance rather than enrollment and pay providers after care is delivered, rather than through pre-set contracts. Child care advocates have warned that delayed payments could disrupt operations for providers and families participating in the program.