HR 7722 — Child Care Integrity Monitoring Act of 2026

changes in existing law made by 
the bill, as reported, are shown as follows (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. 658K. REPORTS AND AUDITS.

 (a) Reports.--
 (1) Collection of information by states.--
 (A) In general.--A State that receives funds 
 to carry out this subchapter shall collect the 
 information described in subparagraph (B) on a 
 monthly basis.
 (B) Required information.--The information 
 required under this subparagraph shall include, 
 with respect to a family unit receiving 
 assistance under this subchapter information 
 concerning--
 (i) family income;
 (ii) county of residence;
 (iii) the gender, race, and age of 
 children receiving such assistance;
 (iv) whether the head of the family 
 unit is a single parent;
 (v) the sources of family income, 
 including--
 (I) employment, including 
 self-employment;
 (II) cash or other assistance 
 under--
 (aa) the temporary 
 assistance for needy 
 families program under 
 part A of title IV of 
 the Social Security Act 
 (42 U.S.C. 601 et 
 seq.); and
 (bb) a State program 
 for which State 
 spending is counted 
 toward the maintenance 
 of effort requirement 
 under section 409(a)(7) 
 of the Social Security 
 Act (42 U.S.C. 
 609(a)(7));
 (III) housing assistance;
 (IV) assistance under the 
 Food and Nutrition Act of 2008; 
 and
 (V) other assistance 
 programs;
 (vi) the number of months the family 
 has received benefits;
 (vii) the type of child care in which 
 the child was enrolled (such as family 
 child care, home care, or center-based 
 child care);
 (viii) whether the child care 
 provider involved was a relative;
 (ix) the cost of child care for such 
 families;
 (x) the average hours per month of 
 such care; and
 during the period for which such information is 
 required to be submitted.
 (xi) whether the children receiving 
 assistance under this subchapter are 
 homeless children;
 (C) Submission to secretary.--A State 
 described in subparagraph (A) shall, on a 
 quarterly basis, submit the information 
 required to be collected under subparagraph (B) 
 to the Secretary.
 (D) Use of samples.--
 (i) Authority.--A State may comply 
 with the requirement to collect the 
 information described in subparagraph 
 (B) through the use of disaggregated 
 case record information on a sample of 
 families selected through the use of 
 scientifically acceptable sampling 
 methods approved by the Secretary.
 (ii) Sampling and other methods.--The 
 Secretary shall provide the States with 
 such case sampling plans and data 
 collection procedures as the Secretary 
 deems necessary to produce 
 statistically valid samples of the 
 information described in subparagraph 
 (B). The Secretary may develop and 
 implement procedures for verifying the 
 quality of data submitted by the 
 States.
 (E) Prohibition.--Reports submitted to the 
 Secretary under subparagraph (C) shall not 
 contain personally identifiable information.
 (2) Annual reports.--Not later than 1 year after the 
 date of the enactment of the Child Care and Development 
 Block Grant Act of 2014, and annually thereafter,, a 
 State described in paragraph (1)(A) shall prepare and 
 submit to the Secretary a report that includes 
 aggregate data concerning--
 (A) the number of child care providers that 
 received funding under this subchapter as 
 separately identified based on the types of 
 providers listed in section 658P(6);
 (B) the monthly cost of child care services, 
 and the portion of such cost that is paid for 
 with assistance provided under this subchapter, 
 listed by the type of child care services 
 provided;
 (C) the number of payments made by the State 
 through vouchers, contracts, cash, and 
 disregards under public benefit programs, 
 listed by the type of child care services 
 provided;
 (D) the manner in which consumer education 
 information was provided to parents and the 
 number of parents to whom such information was 
 provided; and
 (E) the total number (without duplication) of 
 children and families served under this 
 subchapter;
 during the period for which such report is required to 
 be submitted.
 (F) the number of child fatalities occurring 
 among children while in the care and facility 
 of child care providers receiving assistance 
 under this subchapter, listed by type of child 
 care provider and indicating whether the 
 providers (excluding child care providers 
 described in section 658P(6)(B)) are licensed 
 or license-exempt.
 (b) Audits.--
 (1) Requirement.--A State shall, after the close of 
 each program period covered by an application approved 
 under section 658E(d) audit its expenditures during 
 such program period from amounts received under this 
 subchapter.
 (2) Independent auditor.--Audits under this 
 subsection shall be conducted by an entity that is 
 independent of the State that receives assistance under 
 this subchapter and be in accordance with generally 
 accepted auditing principles.
 (3) Submission.--Not later than 30 days after the 
 completion of an audit under this subsection, the State 
 shall submit a copy of the audit to the legislature of 
 the State and to the Secretary.
 (4) Repayment of amounts.--Each State shall repay to 
 the United States any amounts determined through an 
 audit under this subsection not to have been expended 
 in accordance with this subchapter, or the Secretary 
 may offset such amounts against any other amount to 
 which the State is or may be entitled under this 
 subchapter.
 (c) Periodic Monitoring by the Secretary.--At 3-year 
intervals, the Secretary shall conduct a comprehensive review 
of the performance of each State that receives assistance under 
this subchapter. Based on the results of such review, the 
Secretary shall designate as high risk a State that has--
 (1) a high level of unresolved or repeated adverse 
 audit findings submitted under subsection (b);
 (2) a high level of unresolved issues under, or 
 repeated performance failures to carry out, corrective 
 action plans submitted by such State under section 
 659J(c); or
 (3) unresolved or repeat findings of noncompliance 
 with the State plan approved under section 658E(c).
 (d) Required Additional Monitoring.--If a State is designated 
as high risk under subsection (a), then the performance of such 
State shall be subject to additional monitoring, as determined 
by the Secretary.

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