Texas Child Care Fraud at Lowest Rate

0:00A new report ordered by Governor Greg Abbott shows that less than half a percent of federal child care scholarships spending in Texas counts as improper payments. This includes overpayments, underpayments, or outright fraud. Abbott called for the review after unverified claims of a $110 million fraud scheme surfaced in Minnesota last December. Those Minnesota allegations pushed by a YouTuber haven't been proven true. Still, they sparked a national reaction, with federal officials freezing child care funds in five states including California and New York. Meanwhile, Texas' subsidy program is stretched thin, with over 100,000 kids on weightless and many areas lacking providers entirely. Childcare advocates express concern that heightened fraud fears could pile on new rules for already struggling centers. Groups like the Early Care and Education Consortium warn against overcorrecting and burdening small businesses further. On the other hand, Abbott's team praises the state's low improper rate as proof of

1:03solid safeguards. The audit flagged just 125 high-risk providers out of about 7,500. Texas has slashed improper payments from over 8 percent in 2007 to under half a percent in 2022, beating the national average of nearly 4 percent. Key tools include in-person checks, attendance tracking, and fraud hotlines. Going forward, agencies are rolling out monthly high-risk reports, unified attendance software, and better data sharing to catch issues early. A Senate committee meets April 8th to gather public ideas on preventing fraud without harming access. Ensuring taxpayer dollars reach families who need the most, I'm Cory with the story. That's your El Paso News today update, AI Powered and Always On.