Lawmakers Call for Audit of Child Care Spending

Concerns over alleged fraud in taxpayer-funded child care programs in Minnesota are prompting Pennsylvania lawmakers to take a closer look at their own system. Reps. Jill Cooper and Kate Klunk are proposing legislation they say is designed to protect public funds, ensure accountability, and make sure resources reach the families and providers who rely on them.

The proposal, known as the Protect Child Care Funding Act, would authorize an independent audit of Pennsylvania’s taxpayer-funded child care programs operated through the Department of Human Services. Supporters argue the measure is about oversight, not accusation, and ensuring public confidence in programs that receive significant state and federal investment.

A Proactive Response to National Concerns

Federal investigators are currently reviewing allegations of large-scale fraud involving child care centers in Minnesota that reportedly accepted taxpayer funds despite having no children enrolled. Those allegations led the U.S. Department of Health and Human Services to temporarily freeze federal child care funding to the state, a move that sent ripples of concern across the country.

While there have been no similar allegations in Pennsylvania, Cooper and Klunk say the situation underscores the importance of proactive oversight. They argue taxpayers deserve reassurance that funds dedicated to child care are being used as intended and are not vulnerable to abuse or waste.

“Each year, over $1 billion is invested in child care because both taxpayers and lawmakers recognize how important these programs are,” Cooper said. “Child care providers throughout the state work diligently to operate these programs on shoestring budgets, so if dollars are being wasted through fraud and abuse schemes, we need to hold those responsible accountable and allocate those funds where they belong.”

What the Protect Child Care Funding Act Would Do

At the center of the proposal is a straightforward but far-reaching provision: authorizing the Pennsylvania auditor general to conduct a full audit of child care programs administered by the Department of Human Services. The bill also includes a requirement that the department cooperate fully with the auditor general’s office during the review.

Supporters say this level of transparency is essential when public dollars are involved, particularly in programs that serve vulnerable populations and working families who depend on reliable child care to remain in the workforce.

Klunk emphasized that every misused dollar represents a lost opportunity for families and providers alike. “A dollar used fraudulently or wasted is a dollar that could have helped a working family afford child care or a program provider offer a more competitive salary to its staff,” she said.

Trust in Independent Oversight

Klunk pointed to Pennsylvania Auditor General Tim DeFoor as a key reason for confidence in the proposal. She described DeFoor as a “dedicated and thorough elected official” capable of identifying any instances of fraud or abuse if they exist.

By placing the review in the hands of an independent, elected auditor rather than an internal agency review, proponents argue the legislation strengthens public trust and ensures credibility in the findings.

Protecting Limited Resources for Families and Providers

The co-sponsor memorandum circulated to House members stresses that Pennsylvania, like most states, operates child care assistance programs with limited resources. Lawmakers backing the bill say audits are not meant to punish providers who are already stretched thin, but to protect them.

Ensuring that funds are not siphoned off through improper schemes, they argue, helps legitimate providers remain viable and ensures assistance reaches families who genuinely need it. In that sense, the bill is framed as both a fiscal responsibility measure and a pro-family policy.

Next Steps for the Proposal

The Protect Child Care Funding Act has been circulated to House members through a co-sponsor memo and is expected to be formally introduced at a later date. Cooper and Klunk say they look forward to working with colleagues across the chamber to advance the legislation.

As scrutiny of taxpayer-funded programs continues nationwide, the proposal positions Pennsylvania lawmakers as seeking transparency before problems arise, rather than reacting after the fact. Supporters say that approach not only protects public dollars but reinforces confidence in programs that play a critical role in supporting working families and early childhood care.