Abbott Orders Statewide Investigation Into Possible Child Care Funding Fraud
January 6, 2026 – AUSTIN — Governor Greg Abbott has directed multiple Texas state agencies to launch investigations into potential fraud involving taxpayer-funded child care programs, signaling a crackdown on misuse of public funds.
In a letter sent Monday, Abbott instructed the Texas Workforce Commission to work alongside the Health and Human Services Commission to strengthen anti-fraud efforts and investigate any indications that child care subsidies are being improperly claimed or distributed.
“Recently, the Trump Administration and independent journalists have uncovered potential systematic fraud in subsidized child care systems in states like Minnesota,” Abbott said in a statement. “Such fraud will never be tolerated in Texas.”
The governor said the move is intended to protect the integrity of the state’s Child Care Services Program, which provides assistance to qualifying families to help cover the cost of child care while parents work or attend school. Abbott emphasized that taxpayer dollars must be safeguarded and used only for their intended purpose.
Under the directive, state agencies are expected to take proactive steps to prevent fraud, improve detection systems, and pursue investigations where misuse or misdirection of funds is suspected. That may include reviewing provider billing practices, eligibility determinations, and payment oversight procedures.
The Texas Workforce Commission administers child care subsidies through local workforce boards, while the Health and Human Services Commission oversees related social services and compliance efforts. Officials have not released details on specific cases under review or the scope of potential fraud in Texas.
Abbott’s action comes amid heightened national scrutiny of public benefit programs and increased emphasis on accountability and transparency. State officials say the investigations are aimed at ensuring families who truly need assistance continue to receive support while rooting out abuse of the system.
The governor’s letter outlining the directive has been made publicly available.
