Combating Regulatory Abuse, Closing Known Deficiencies, and Overseeing Waste Nationwide Act; CRACKDOWN Act of 2026
Summary
The CRACKDOWN Act of 2026 amends the Child Care and Development Block Grant Act of 1990. It aims to reduce improper payments made under the Act by setting an overpayment threshold. States exceeding a 5% overpayment rate must submit a corrective action plan to the Secretary.
Expected Effects
States failing to meet the overpayment threshold for two consecutive years could become ineligible for funds. This incentivizes states to improve their payment accuracy and reduce waste. The Department of Health and Human Services will have increased oversight.
Potential Benefits
- Reduced waste of taxpayer money through improper payments.
- Increased accountability for states in managing Child Care and Development Block Grant funds.
- Potential for more efficient allocation of resources to childcare and development programs.
- Improved financial oversight at the state level.
- Corrective action plans may lead to better program management practices.
Most Benefited Areas:
Potential Disadvantages
- Potential for states to reduce access to childcare services to meet the overpayment threshold.
- Increased administrative burden on states to develop and implement corrective action plans.
- Possible delays in receiving funds for states that are deemed ineligible.
- Risk of unintended consequences if corrective actions are not well-designed.
- The 5% threshold may be too stringent for some states, leading to unnecessary penalties.
Constitutional Alignment
The bill aligns with the Constitution's general welfare clause (Preamble). Congress has the power to collect taxes and provide for the general welfare of the United States. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).