Senate HELP Chair Bill Cassidy is expanding a childcare fraud probe beyond Minnesota into New York, Michigan and Oregon, pressing Democratic governors for detailed records and explanations. He points to troubling federal error rates, wants to know how states monitor providers and spend federal money, and set a firm deadline for answers.
Cassidy first began this effort focused on Minnesota and demanded receipts tied to childcare grants and federal funding at the center of that state’s scandal. That initial push exposed how lax controls can let taxpayer dollars slip through cracks and raised calls for broader scrutiny.
Now Cassidy has sent letters to the governors of New York, Michigan and Oregon, saying federal data shows those states have led the nation in improper payments in programs that help families afford childcare. New York posted a payment error rate of over 17% in fiscal year 2024, Michigan’s rate topped 12% in fiscal year 2025, and Oregon showed more than 35% in fiscal year 2024.
“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.
Cassidy demanded the same kinds of receipts and documentation he sought from Minnesota’s governor, pressing for specifics on how often states perform on-site monitoring, inspections or investigative visits to childcare facilities that receive federal funds. He left no wiggle room, giving the governors until March 30 to produce answers and records.
The senator also wants a detailed history of each state’s improper payment rates from fiscal years 2016 through 2025, plus clear explanations for any notable spikes or drops. That timeline is meant to show whether problems are recent, persistent, or the result of policy changes and to pin down accountability.
Beyond rates, Cassidy asked for evidence of anti-fraud measures enacted since 2016 and any action plans designed to prevent future abuse, verify eligibility, and ensure payments reflect actual services. Lawmakers are looking for proof that states are doing more than writing checks and are actively confirming providers and recipients meet program rules.
He also requested information about how federal funding is being used, how each state verifies childcare providers and monitors subsidy recipients, and full details on audits and investigations conducted since 2016, including whether fraud or improper payments were found. This is about tracing dollars, spotting failures, and fixing loopholes that let bad actors benefit.
“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.
Darnell Thompkins is a Canadian-born American and conservative opinion writer who brings a unique perspective to political and cultural discussions. Passionate about traditional values and individual freedoms, Darnell’s commentary reflects his commitment to fostering meaningful dialogue. When he’s not writing, he enjoys watching hockey and celebrating the sport that connects his Canadian roots with his American journey.