(The Center Square) – Because North Carolina issues subsidy payments to child care providers after attendance is submitted, the federal notification sent Monday afternoon by the U.S. Department of Health and Human Services will not mean a freeze of child care funds to the state.
Low-income families get help paying for child care so parents can work or continue their education through an HHS program called the Child Care and Development Fund. States can use funds to reimburse child care providers, subsidize care costs for eligible families, and ensure basic safety and quality standards, says a release from first-term Democratic Attorney General Jeff Jackson.
Accusations of fraud within the child care sector in Minnesota has drawn national attention. As early as 2015, the TV station KMSP says it has been uncovering daycare fraud leading to charges and guilty pleas. TV station KARE unleashed a significant report in 2022. Accusations have increased in the past month.
Jackson and Dr. Dev Sangvai, the secretary of the state Department of Health and Human Services, pledged transparency and honesty within the system.
“When people steal taxpayer money, they’re stealing from kids and families,” Jackson said. “We have zero tolerance for it, and we’ll use every tool we have to stop it. The North Carolina Department of Health and Human Services has been a reliable partner in past efforts to uncover and stop fraud, and that partnership has helped us save taxpayers millions of dollars.”
Sangvai said, “We are committed to strong oversight so child care dollars are used appropriately and reach the families they are intended to support. We are working closely with our federal partners to protect funding and minimize any disruption for children, families, and providers.”
Under the direction of Secretary Robert F. Kennedy Jr., Health and Human Services on Monday said it would rescind a series of Biden administration rules “that required states to pay providers before verifying any attendance and before care was delivered.”
Specifically, it rolls back provisions in the 2024 Child Care and Development Fund. Attendance-based billing will be restored, upfront payments will not be required, and voucher flexibility will be restored.
“Paying providers upfront based on paper enrollment instead of actual attendance invites abuse,” said HHS Deputy Secretary Jim O’Neill. “In Minnesota, we’ve seen credible and widespread allegations of fraudulent daycare providers who were not caring for children at all. The reforms we are enacting will make fraud harder to perpetrate.”
