Texas Child Care Scholarships: Low Fraud Rate, High Demand

0:00A new report ordered by Texas Governor Greg Abbott shows that less than half a percent of federal child care scholarship money in the state was, improper last year. That's way below the national average of about 4%. The review came after unverified claims of a $110 million fraud scheme in Minnesota child care programs. Those Minnesota allegations in late 2025 sparked worries nationwide, leading the federal government to freeze child care funding in five. This includes in California and New York. In Texas, the program has already stretched thin with over 100,000 kids on wait lists, high preschool costs that often be college. Tuition and many areas lacking providers altogether. Child care advocates fear the fraud panic could lead to stricter rules that burden underfunded providers and cut access for families. Officials and Abbott's office praised Texas for strong safeguards, like in-person checks and attendance tracking that dropped improper payments from over, 8% in 2007 to under half

1:02a percent now. The investigation flagged 125 high-risk providers out of about 7,500. Agencies are adding monthly risk reports, more training, and a single statewide attendance system, though some worry it creates extra costs without, much fraud gain. Texas continues tightening oversight while lawmakers seek public input on preventing waste in child care and Medicaid, balancing protection of funds, with keeping doors open for working families. From your city, powered by AI, this is Canada News Today.