Gov. Greg Abbott has directed state agencies to bolster anti-fraud efforts and investigate any misuse of funds in Texas’ subsidized child care program, citing recent revelations of alleged schemes in states such as Minnesota.
In a letter to Texas Workforce Commission Chairman Jose A. “Joe” Esparza and Health and Human Services Commission Executive Commissioner Stephanie Muth, the Republican governor emphasized the need to safeguard taxpayer dollars and child safety.
“Recently, the Trump Administration and independent journalists have uncovered potential systematic fraud in subsidized child care systems in states like Minnesota,” Abbott said in a January 5 statement. “Such fraud will never be tolerated in Texas. Today, I directed Texas state agencies to take proactive steps to prevent, detect, and eliminate misuse of taxpayer funds to protect the integrity of Texas’ Child Care Services Program.”
The agencies already maintain measures such as routine audits and in-person site visits, contributing to Texas’ improper payment rate of 0.43%, far below Minnesota’s approximately 11%, based on the latest federal data, the letter noted.
Abbott warned that fraud harms taxpayers and families awaiting access to programs, adding that “waste, fraud, and abuse of taxpayer dollars will not be tolerated and will be punished to the fullest extent of the law in Texas.”
Under TWC’s authority in Chapter 301 of the Texas Labor Code and HHSC’s under Chapter 42 of the Texas Human Resources Code, the governor instructed the commissions to:
- Identify high-risk providers in the Child Care Services Program and perform extra site visits for compliance with state and federal rules;
- Examine current data collection and ensure all steps are taken to curb fraudulent activity by TWC and Local Workforce Development Boards;
- Verify that providers accurately report enrolled children;
- Assess oversight for Local Workforce Development Boards, with corrective actions like additional training for those falling short;
- Improve public access to an online portal and hotline for fraud reports;
- Refer completed provider fraud probes to federal or state prosecutors as needed.
The agencies must deliver a progress report to Abbott’s office by January 30 and a final update on February 27. Abbott pledged ongoing collaboration with state entities to combat fraud while supporting affordable, quality child care.
