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Texas launches investigation into potential child care funding fraud following Minnesota cases

Governor Abbott orders investigation into child care funding fraud following Minnesota cases. State agencies to review programs and conduct site visits.
Child fraud investigation
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Gov. Greg Abbott has ordered an investigation into potential child care funding fraud following Minnesota cases. State agencies to review programs and conduct site visits.

  • Texas Gov. Greg Abbott ordered state agencies to investigate potential child care funding fraud following widespread fraud cases discovered in Minnesota.
  • Texas currently has a much lower improper payment rate than Minnesota.
  • State agencies must identify high-risk providers and conduct additional site visits with progress reports due by end of January and final reports by end of February.

Watch the full story here:

Texas launches investigation into potential child care funding fraud following Minnesota cases

BROADCAST TRANSCRIPT:
Texas Governor Greg Abbott has directed state agencies to investigate potential child care funding fraud, drawing support from federal and state leaders just one day after the announcement.

The investigation comes in response to widespread child care funding fraud cases discovered in Minnesota.

"No one wants to see fraud, no one wants to see a misuse of money, they want to see the money used for its intended purpose," U.S. Congressman Pete Sessions said.

Congressman Pete Sessions expressed strong support for the governor's directive, calling it both appropriate and smart.

"I think it's not only appropriate, I think it's smart to do that, why would you want to be caught up in something that was rampant in another state and unless you go and look then you are not sure," Sessions said.

Pete Sessions
Pete Sessions

In his letter announcing the investigation, Abbott highlighted that Texas already has anti-fraud measures in place that have helped reduce the state's improper payment rate to less than half a percent, compared to roughly 11% in Minnesota.

Sessions emphasized the importance of oversight given Texas' size and the local nature of these programs.

"Texas is the second largest state in the country, these programs by enlarge are run by local communities and these local communities do find themselves with varying factors. I think the governor appropriately and properly is asking for a review to make sure Texas does not fit in those categories of fraud," Sessions said.

As part of the directive, the Texas Workforce Commission and Health and Human Services Commission have been instructed to lead the investigation. The agencies will work to identify high-risk child care providers and conduct additional site visits to ensure compliance with state and federal laws.

The state will also review data collection practices to better prevent, detect, and eliminate fraud within the child care services program.

"That's why the governor is doing what he is doing, to make sure that we are properly not just using federal dollars but state and local dollars properly," Sessions said.

State agencies are required to provide a progress report to Abbott by the end of January, with a final report due by the end of February.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.


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