Texas Gov. Greg Abbott wants state agencies to implement new "strong anti-fraud measures" to a program designed to help low-income families pay for child care.
The call for increased scrutiny follows the Trump administration's decision to freeze federal funding to Child Care Services programs due to a viral video claiming widespread fraud in Minnesota.
In a letter sent Monday to the heads of the Texas Workforce Commission and Health and Human Services Commission, Abbott directs the agencies to identify "high-risk providers" participating in the program and conduct additional site visits.
"Texas' percentage of improper payment rates is 0.43 percent, compared to Minnesota's approximately 11 percent according to the most recently available federal data," Abbott wrote in the letter. "However, more can be done to protect Texas children and taxpayers."
He also directs the agencies to review data to address potential fraud in the program, ensure all providers are "accurately and verifiably" reporting the number of children enrolled, conduct reviews of the oversight processes and enhance access to the online portal and hotline so people can report fraud.
Texas' Child Care Services program, overseen by the TWC, provides financial aid for child care for eligible families, according to the agency's website.
The Trump administration froze federal funding after a conservative YouTuber posted a viral video claiming without evidence that there is widespread fraud in Minnesota daycare centers run by Somali Americans.
On Monday, the U.S. Department of Health and Human Services announced states may require payment based on "verified attendance rather than enrollment alone," as well as paying providers after care is delivered. HHS also said states will no longer be "steered towards contracts over parent-directed vouchers."
National child care advocates said providers are concerned they won't be able to stay open if payments are delayed for children in the program. They said the freeze is disruptive for kids, parents and providers.
Abbott said state agencies must submit all provider fraud investigations to prosecutors as appropriate.
HHSC and TWC are expected to provide a progress report to Abbott by the end of the month, followed by a final report by Feb. 27.
"The Texas Workforce Commission and Health and Human Services Commission already have strong anti-fraud processes in place like routine audits of providers and in-person site visits to facilities to ensure the physical safety of Texas children and the good stewardship of state dollars," Abbott said. "Waste, fraud, and abuse of taxpayer dollars will not be tolerated and will be punished to the fullest extent of the law in Texas."
Abigail Ruhman is KERA's health reporter. Got a tip? Email Abigail at aruhman@kera.org.
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