U.S. HHS Rescinds Biden-Era Child Care Regulations Amid Fraud Allegations
The U.S. Department of Health and Human Services (HHS) has announced significant changes to its child care funding policies, reversing several rules established during the Biden administration. This decision follows a recent freeze on federal funding, highlighting ongoing concerns about alleged fraud in child care programs.
Under the previous administration, rules were in place to base payments to child care providers on enrollment rather than attendance, and to pay providers in advance, favoring guaranteed slots over vouchers. However, the HHS now plans to revert to attendance-based billing and no longer requires advance payments to providers.
“When controls are not in place, bad actors can bill for children who aren’t there,” stated Alex Adams, assistant secretary for family support at HHS’s Administration for Children and Families. “Families and taxpayers deserve proof that services are being delivered to children.”
Despite these changes, child care advocates argue that existing controls are sufficient to prevent fraud. Susan Gale Perry, CEO of Child Care Aware of America, emphasized, “What we know to be true is that there are longstanding program integrity requirements that have been in place and are regularly updated, annually updated.”
The Child Care and Development Fund (CCDF), a major federal funding source, assists states, tribes, and territories in making child care more affordable for low-income families. In 2019, approximately 1.4 million children and 857,700 families received assistance through CCDF, according to HHS data.
Funding Freeze and Its Implications
Recently, HHS announced a freeze on CCDF funding, pending the provision of specific “administrative data” by individual states. This move has been met with uncertainty. Melissa Boteach from Zero to Three expressed concern over the “chaos and confusion” these changes may cause, impacting both families and early educators.
HHS has yet to clarify how the recent announcement aligns with the funding freeze, leaving many states unsure about the requirements to resume funding. Perry noted the precarious situation for child care centers, which could face closure if funding is delayed.
Allegations of Fraud in Minnesota
The overhaul of federal child care funding policies is partly in response to allegations of fraud in Minnesota. A viral video by right-wing influencer Nick Shirley accused Somali-American-run day care centers of defrauding the federal government, a claim lacking clear evidence.
In response, HHS Deputy Secretary Jim O’Neill outlined measures to combat fraud, including requiring detailed justification and evidence before disbursing funds. O’Neill stated, “The reforms we are enacting will make fraud harder to perpetrate.”
The proposed rule changes are open for a 30-day public comment period, allowing for further input and discussion on the future of child care funding policies.
