A Senate Republican wants to crack down on childcare providers convicted of fraud with legislation that would, among a handful of tweaks to current law, require the fraudsters to pay back the misspent taxpayer money.
The bill from Sen. John Cornyn, R-Texas, would amend the Child Care and Development Block Grant Act to impose harsher penalties on childcare providers convicted of fraud, and one of several moves in the upper chamber to tackle the sprawling Minnesota fraud scandal.
Cornyn’s bill, the Stop Fraud by Strengthening Oversight and More Accountability for Lying and Illegal Activity (SOMALIA) Act, is narrowly tailored toward addressing fraudulent activity in childcare and daycare centers, but the breadth and scope of the unfurling scandal goes beyond that.
Federal prosecutors estimate that up to $9 billion was stolen through a network of fraudulent fronts posing as daycare centers, food programs and health clinics.
‘The Minnesota scandal has exposed a deep-rooted, morally bankrupt fraud empire, and it is clear more must be done to rid our nation of these heinous criminals,’ Cornyn said in a statement to Fox News Digital.
The legislation would require mandatory permanent debarment from all federally funded child care assistance programs, repay misspent federal funds, require referral for federal criminal investigations, and require states to enforce the above bans and halt providers from evading debarment by restructuring the business or changing the business name.
There’s also an immigration component to the bill that would make non-citizens convicted of fraud deportable, bar them from asylum, adjustment of status, and subject them to mandatory detention and expedited removal.
Cornyn’s effort is one of many coming from the Senate GOP, where lawmakers are looking at several options to crack down on fraud, both in Minnesota and more broadly in the federal government.
Every Senate Republican joined in on a letter to Minnesota Gov. Tim Walz last week, and demanded that he provide a paper trail on the state’s role in the scandal. And Senate Majority Leader John Thune, R-S.D., floated that budget reconciliation, the same procedure used to pass President Donald Trump’s ‘big, beautiful bill,’ could be used to deal with fraud.
And the Trump administration has moved to or threatened cancellation of federal funds to the state in the wake of the scandal.
‘I applaud President Trump for his efforts to end this corruption, and I’m proud to take it a step further with the Stop Fraud by SOMALIA Act, which would ensure these consequences are enshrined into law before any more funds are misused or sent overseas to fund American-hating terrorist networks like we saw in now-disgraced Governor Walz’s state,’ Cornyn said.
