Senate Republican expands childcare fraud crackdown to more blue states
FIRST ON FOX: A Senate Republican is expanding his childcare fraud investigation, going beyond Minnesota and into several other blue states.
Senate Health, Education, Labor and Pensions (HELP) Chair Bill Cassidy, R-La., is widening the net of his crackdown on fraud to include New York, Michigan and Oregon.
Cassidy initially launched his fraud hunt to target Minnesota Gov. Tim Walz and demanded the former vice presidential candidate provide receipts for a litany of childcare-related grants and federal funding that were at the heart of the Minnesota fraud scandal.
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Now, in letters to Democratic Govs. Kathy Hochul, Gretchen Whitmer and Tina Kotek, first obtained by Fox News Digital, Cassidy charged that their respective states lead or have led the nation in improper payments in state-administered childcare assistance programs.
"Error rates of this magnitude raise significant concerns about both fraud prevention and access to child care for the families these programs are intended to serve and highlight the need for strengthened program monitoring, improved internal controls, and greater transparency in how these programs are administered," Cassidy wrote to each governor.
Citing Department of Health and Human Services data, Cassidy noted that New York had a payment error rate of over 17% in fiscal year 2024, Michigan’s rate was over 12% in fiscal year 2025, and Oregon had an error rate of over 35% in fiscal year 2024.
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Cassidy demanded similar receipts from each governor as he did from Walz, such as how often the state conducted on-site monitoring, inspections or investigative visits to childcare facilities that received federal dollars. He gave each governor until March 30 to respond.
Among his demands were a history of each state’s improper payment rates between fiscal years 2016 and 2025 and explanations for any significant changes.
He asked what kind of anti-fraud measures have been enacted since 2016, as well as action plans to prevent fraud, verify eligibility and ensure payments align with actual services provided.
The lawmaker also requested information on how federal funding is being used, how the states are verifying childcare providers and monitoring those that receive subsidies, and details on audits and investigations conducted since 2016, including whether fraud or improper payments were found.
"Ensuring the integrity of child care assistance programs is critical not only for protecting taxpayer dollars, but also for maintaining public confidence in programs designed to support children and families," Cassidy wrote.