TEXAS (KXXV) — Gov. Greg Abbott sent a letter on Monday, directing Texas state agencies to launch investigations into potential child care funding fraud in the state. The governor is asking for a progress report to return to his office at the end of the month, and a final report on Feb. 27, 2026.
"Recently, the Trump Administration and independent journalists have uncovered potential systematic fraud in subsidized child care systems in states like Minnesota. 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."
Under the governor's direction, the Texas Workforce Commission (TWC), in partnership with the Health and Human Services Commission (HHSC), will further implement anti-fraud measures and launch investigations into any potential fraud and misdirection of Texas taxpayer dollars.
"Schemes like the ones uncovered in Minnesota harm taxpayers as well as other families and children waiting to participate in the Child Care Services Program," Abbott said in the letter. "Waste, fraud, and abuse of taxpayer dollars will not be tolerated and will be punished to the fullest extent of the law in Texas."
In the letter, written to Chairman Jose Esparza of the Texas Workforce Commission and Executive Commissioner Stephanie Muth of the Texas Health and Human Services Commission, Gov. Abbott is directing them and state agencies to take the following actions:
- Identify high-risk providers that participate in the Child Care Services Program and conduct additional site visits of those providers to make sure it's in compliance with all applicable state and federal laws and regulations
- Review current data collection efforts related to the Child Care Services Program and ensure TWC and Local Workforce Development Boards are taking all possible steps to prevent, detect and eliminate fraudulent activity within the program
- Ensure that all providers participating in the Child Care Services Program are accurately and verifiably reporting the number of children enrolled in the program
- Conduct reviews of Child Care Services Program oversight processes for Local Workforce Development Boards to verify standards of the program are uniformly upheld. Any boards that have not met standards will have corrective actions taken, including but not limited to, providing additional training and education resources
- Enhance access to their online portal and hotline, so Texans can easily report instances of fraud in the states' childcare system
- Submit all completed provider fraud investigations to federal or state prosecutors as appropriate
"I will continue to work with executive branch agencies to fight fraud, protect taxpayer dollars, and promote accessible, affordable, high-quality childcare for Texans," Abbott said in his letter.
You can read the full letter from Gov. Abbott below:
