Senate Health, Education, Labor and Pensions Committee Chair Bill Cassidy, R-La., is expanding his probe beyond Minnesota and directly targeting New York, Michigan, and Oregon—states he says are showing alarming signs of mismanagement and potential abuse in taxpayer-funded childcare programs.
The move comes after Cassidy’s earlier clash with Minnesota Gov. Tim Walz, where he demanded detailed records tied to a massive fraud scandal involving childcare grants and federal funding. That case, already raising eyebrows nationwide, may have been just the beginning.
Now, Cassidy is taking aim at Democratic Governors Kathy Hochul, Gretchen Whitmer, and Tina Kotek, firing off letters demanding answers—and documentation—to explain what he describes as staggering payment error rates in their states.
According to data from the Department of Health and Human Services, the numbers are raising serious red flags. New York posted an error rate exceeding 17 percent in fiscal year 2024. Michigan followed with more than 12 percent in fiscal year 2025. Oregon’s figure was the most eye-popping of all, topping 35 percent in fiscal year 2024.
Cassidy didn’t mince words. He warned that error rates of this magnitude point to deeper systemic failures—failures that could mean fraud, weak oversight, or both. He emphasized that these programs are meant to support working families, not become pipelines for waste or abuse.
The senator is now demanding a sweeping set of records from each state. That includes how often childcare providers receiving federal funds are inspected, how eligibility is verified, and what safeguards are in place to prevent fraudulent claims. He’s also asking for historical data on improper payments dating back to 2016, along with explanations for any spikes or inconsistencies.
But it doesn’t stop there. Cassidy is pressing for details on audits, internal investigations, and whether any fraud has already been uncovered—and what actions were taken in response.
Each governor has been given a firm deadline of March 30 to comply.
The escalation signals a broader Republican push to crack down on what they see as widespread mismanagement of federal funds, particularly in states already under scrutiny. With Minnesota’s scandal still unfolding, Cassidy’s latest move suggests lawmakers believe the issue could be far more widespread than initially thought.
