HR 7721 — CRACKDOWN Act of 2026

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT OF 1990

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 TITLE VI--HUMAN SERVICES PROGRAMS

 Subtitle A--Authorizations Savings for Fiscal Years 1982, 1983, and 
1984

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CHAPTER 8--COMMUNITY SERVICES PROGRAMS

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Subchapter C--Child Care and Development Block Grant

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SEC. 658J. PAYMENTS.

 (a) In General.--Subject to the availability of 
appropriations, a State that has an application approved by the 
Secretary under section 658E(d) shall be entitled to a payment 
under this section for each fiscal year in an amount equal to 
its allotment under section 658O for such fiscal year.
 (b) Method of Payment.--
 (1) In general.--Subject to paragraph (2), the 
 Secretary may make payments to a State in installments, 
 and in advance or by way of reimbursement, with 
 necessary adjustments on account of overpayments or 
 underpayments, as the Secretary may determine.
 (2) Limitation.--The Secretary may not make such 
 payments in a manner that prevents the State from 
 complying with the requirement specified in section 
 658E(c)(3).
 (c) Improper Payment Threshold Requiring Corrective Action 
Plan.--If for a fiscal year the improper payment rate of a 
State is more than 5 percent of the aggregate amount of 
payments made to carry out this subchapter by such State for 
such fiscal year, then such State shall submit to the 
Secretary--
 (1) for review and approval a corrective action plan 
 to reduce such rate to not more than 5 percent for each 
 subsequent fiscal year; and
 (2) such reports as the Secretary may require to show 
 that such State is complying with the requirements of 
 such plan as approved by the Secretary.
 (d) Conditional Ineligibility.--If for each of 2 consecutive 
fiscal years the improper payment rate of a State determined 
under this section is more 5 percent, then such State shall be 
ineligible to receive funds under this subchapter unless such 
State demonstrates to the satisfaction of the Secretary that 
such State for the next fiscal year will--
 (1) reduce such improper payment rate to not more 
 than 5 percent for the next fiscal year; or
 (2) make significant progress to comply with the 
 corrective action plan approved under subsection (c).
 [(c)] (e) Spending of Funds by State.--Payments to a State 
from the allotment under section 658O for any fiscal year may 
be obligated by the State in that fiscal year or in the 
succeeding fiscal year.

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