Taxpayers face a new nightmare as Senator uncovers a crippling problem plaguing child care assistance in multiple blue states
Call for transparency.
Senator Bill Cassidy is officially expanding his investigation into potential child care fraud, moving beyond Minnesota and setting his sights on New York, Michigan, and Oregon. This isn’t just a minor blip; we’re talking about serious issues with how our taxpayer dollars are being used in crucial assistance programs.
According to Fox News, Senator Cassidy, who chairs the Senate Health, Education, Labor and Pensions (HELP) Committee, initially launched his inquiry into Minnesota Governor Tim Walz. He was looking for receipts and accountability regarding a whole mess of child care-related grants and federal funding that were at the heart of a major fraud scandal in that state. Now, it seems like that investigation was just the tip of the iceberg.
In letters sent to Democratic Governors Kathy Hochul of New York, Gretchen Whitmer of Michigan, and Tina Kotek of Oregon, Cassidy laid out some pretty stark figures. He charged that these states are either leading or have previously led the nation in what are called “improper payments” within their state-administered child care assistance programs.
Cassidy seems to be making a strong push for accountability
The Department of Health and Human Services data that Cassidy cited is pretty eye-opening. New York had an improper payment rate of over 17% in fiscal year 2024. Michigan’s rate clocked in at over 12% in fiscal year 2025. Oregon had a staggering error rate of over 35% in fiscal year 2024.
Cassidy didn’t mince words about his concerns. He wrote to each governor, stating, “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.”
Just like he did with Governor Walz, Senator Cassidy is demanding a ton of information from these new states. He wants to know how often each state conducts on-site monitoring, inspections, or investigative visits to child care facilities that receive federal dollars.
He’s also asking for a full history of each state’s improper payment rates between fiscal years 2016 and 2025, along with explanations for any significant changes. Plus, he wants to see what kind of anti-fraud measures have been put in place since 2016. It’s all about trying to figure out where the money is going and if it’s actually helping families.
Beyond that, Cassidy is requesting details on action plans to prevent fraud, verify eligibility, and ensure that payments actually align with the services provided. He wants to understand how federal funding is being used, how states are verifying child care providers, and how they’re monitoring those who receive subsidies.
Any audits or investigations conducted since 2016, including whether fraud or improper payments were found, are also on his list. The governors have until March 30 to respond to these extensive demands.
President Donald Trump and Vice President JD Vance have also been vocal about combating waste and fraud, speaking from the White House on efforts to tackle these issues. Senator Cassidy summed up the importance of this crackdown perfectly. He wrote, “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.”
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