Gov. Greg Abbott has directed state agencies to investigate potential fraud within Texas’ subsidized child care system following revelations of widespread abuse in Minnesota.
In a letter sent Monday to the Texas Workforce Commission and the Health and Human Services Commission, Abbott ordered the agencies to expand anti-fraud efforts and launch investigations into any misuse of taxpayer funds within the state’s Child Care Services program.
“Recently, the Trump Administration and independent journalists have discovered potential systematic fraud in subsidized childcare systems of other states,” Abbott wrote, adding that such conduct “will never be tolerated in Texas.”
Abbott noted that Texas already conducts routine audits and in-person site visits of child care providers, pointing to a reported improper payment rate of just 0.43 percent—far below Minnesota’s approximately 11 percent, according to the most recent federal data cited in the letter.
Still, the governor said additional safeguards are necessary in light of schemes uncovered elsewhere, directing agencies to identify high-risk providers, conduct additional site visits, verify enrollment reporting, strengthen oversight of local workforce boards, and expand public reporting tools for suspected fraud.
Abbott gave agencies just weeks to act, demanding a progress report by January 30 and a final report by February 27. He also ordered that any completed fraud investigations be referred to state or federal prosecutors when appropriate.
The directive follows recent reporting on large-scale child care subsidy fraud in Minnesota, where federal prosecutors have alleged that Somali-owned centers siphoned millions of dollars from programs intended to serve low-income families.
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