Strengthening Trust and Accountability in Child Care Services
At Workforce Solutions Rural Capital Area (WSRCA), we believe that access to safe, reliable child care is foundational to strong families, a resilient workforce, and a thriving economy. Recent national and state actions related to child care funding oversight have raised important questions, and we want to share what we know, what it means for Texas, and how we are working closely with our partners to ensure accountability while continuing to support families and providers.
State Leadership Reinforces Accountability
On January 5, 2026, Governor Greg Abbott issued a directive to the Texas Workforce Commission (TWC) and Texas Health and Human Services (HHS), reaffirming the importance of protecting the integrity of Texas’ Child Care Services Program. The Governor cited recent discoveries of systemic fraud in other states’ subsidized child care systems and emphasized Texas’ responsibility to proactively prevent, detect, and eliminate misuse of taxpayer dollars.
Importantly, the Governor noted that Texas already has strong anti-fraud measures in place, including audits and in-person site visits. These efforts have produced results. Texas’ improper payment rate stands at 0.43%, significantly lower than states where widespread fraud has been identified.
What Prompted Increased Oversight Nationwide
At the federal level, the U.S. Department of Health and Human Services froze Child Care Development Fund (CCDF) payments to Minnesota following allegations of fraud at child care facilities. While this action applies to Minnesota, it triggered broader scrutiny and new verification expectations for all states administering CCDF funds.
The Administration for Children and Families (ACF), which oversees CCDF, has indicated that states may be required to implement additional validation measures such as receipts and or photo documentation before payments are released. TWC has shared that it is awaiting detailed federal guidance and is actively working to minimize any disruption to payment cycles for Texas providers and families.
What This Means for Texas Providers and Families
TWC and HHS have been directed to take additional steps to strengthen oversight, including identifying high-risk providers, conducting targeted site visits, enhancing reporting verification, reviewing local board oversight processes, and expanding access for Texans to report suspected fraud.
For families and providers doing the right thing, these actions are about protection, not punishment. Fraud diverts resources away from children and families who need them most. Strong safeguards help ensure funding remains available, sustainable, and trusted.
Safeguards Already in Place at WSRCA
As we await further guidance from TWC, we want to reaffirm that Workforce Solutions Rural Capital Area already maintains robust compliance and accountability practices. Every dollar entrusted to us is managed with care and purpose to support working Texas families.
Our safeguards include:
- Partnering only with child care providers who are licensed or registered with Texas Health and Human Services Child Care Licensing (CCL) or operated and monitored by the U.S. military.
- Excluding providers under Adverse Action with CCL from funding eligibility.
- Reciprocally excluding providers disqualified from the United States Department of Agriculture (USDA) Child and Adult Care Food Program.
- Requiring providers to accept the maximum Child Care Services (CCS) payment rate, minus the parent share of cost, or their published rate if it is lower.
- Enforcing federal record retention requirements of three years and three months for CCS subsidized children.
- Conducting regular mentoring and monitoring visits through WSRCA staff and BakerRipley, our contracted child care services partner that provides on-the-ground provider support, technical assistance, and compliance monitoring to help identify and resolve issues early.
Setting Providers Up for Success
Early learning programs seeking to participate as CCS providers must demonstrate a commitment to quality and compliance through several required steps, including:
- Submission of all required documentation and a signed Provider Agreement outlining attendance tracking and reporting requirements.
- Participation in a CCS orientation with a Provider Services Specialist, which includes guidance on accurate attendance recording and an overview of monitoring and compliance processes.
- Attendance at a Texas Rising Star (TRS) orientation with an assigned mentor to support continuous quality improvement.
These requirements are designed to protect children, support providers, and uphold public trust in the system.
Moving Forward Together
We understand that increased oversight can raise concerns. Please know that we are working closely with TWC, HHS, and our provider partners to stay informed, prepared, and responsive as new guidance is issued.
Our commitment remains clear. We will continue to protect the integrity of child care funding, support high-quality providers, and ensure working families across the Rural Capital Area have access to safe, reliable child care.
If you have questions or would like to discuss these updates further, we welcome the conversation. Strong partnerships and open communication are how we navigate change and continue serving our communities with confidence and care.
TOPICS: Child Care Services
