Protecting Taxpayer Funds – Preventing Fraud and Abuse: Senate Health & Human Services
- TCCRI Staff
- 2 days ago
- 1 min read
The existing system does not warrant sweeping, costly reforms, but targeted reinforcement, thorough oversight, and protection from the kind of reflexive regulatory expansion.
In December 2025, a social media video alleged that child care centers in Minnesota had defrauded the state through the Child Care and Development Fund. In response, the U.S. Department of Health and Human Services froze access to the child care and Temporary Assistance for Needy Families (TANF) fund in California, Colorado, Illinois, Minnesota, and New York, citing concerns over widespread fraud and misuse of public funds.
Governor Abbott directed Texas’ Health and Human Services Commission (HHSC) and the Texas Workforce Commission (TWC) to investigate the extent to which similar programs could exist in Texas. His letter noted that Texas already employs strong anti-fraud measures, as demonstrated by the state's 0.43 percent improper payment rate (compared to Minnesota’s 11 percent); however, the letter also highlighted the importance of proper stewardship of taxpayer funds. Governor Abbott directed TWC and HHSC to utilize the broad authority these agencies are given under Chapter 301 of the Texas Labor Code and Chapter 42 of the Human Resources Code, respectively, to enhance fraud detection and prevention efforts. The agencies were instructed to provide a final report on enhanced efforts within their existing authority by February 27, 2026.
Read the full report in the link above.
