Sen. Ted Cruz (R-TX) has introduced a measure aimed at preventing widespread government welfare fraud like what is happening in Minnesota, California, and other states.
Cruz’s “Payment Integrity Act” would reimagine how federal childcare funds are paid out after it was revealed that fraudsters in Minnesota raked in up to $9 billion in taxpayer funds by running scams designed to defraud government welfare programs.
The legislation, cosponsored by Sens. Mike Lee (R-UT) and Rick Scott (R-FL) would require states to base payments on verified attendance rather than just enrollment. This would prevent situations where childcare providers falsely claim to have a certain number of kids enrolled when they really don’t. This is one of several scams that occurred in Minnesota.
“Sen. Ted Cruz, R-Texas, joined by Sens. Mike Lee, R-Utah, and Rick Scott, R-Fla., is introducing the Payment Integrity Act, legislation that would require states to distribute federally funded childcare dollars based on verified attendance — not enrollment claims.” | @FoxNews…
— Senator Ted Cruz (@SenTedCruz) February 13, 2026
The Payment Integrity Act would mandate that states only disburse federal childcare funds after confirming that real children are receiving the benefits and services. Cruz argued that programs in Minnesota “were treated like an open ATM by criminals” and that this bill will “reduce the risk of the waste and fraud we’ve seen and ensure that resources are provided to children and families who need it.”
During a recent Senate Judiciary subcommittee hearing, the lawmaker said there are “few crimes more morally repugnant than stealing from vulnerable children” because “every dollar stolen is a meal not eaten, a doctor’s visit missed and a future diminished.”
The bill would reverse a Biden-era rule that required states to pay childcare providers based on enrollment — and often in advance. These payments would be sent without even verifying that a childcare provider was actually serving children. In essence, the states were encouraged to take the word of each of these providers as gospel instead of checking to see if they are providing honest and accurate information.
WATCH: David Hoch testifies on fraud before the U.S. Senate, slamming the "criminal behavior from the gang at the Minnesota Department of Human Services."
— Alpha News (@AlphaNews) February 4, 2026
"It was the sheer volume and the blatant nature of the Somali fraud that demanded my attention.
"It's criminal behavior.… pic.twitter.com/wQQPWafRhI
The impetus behind this legislation was the “mass fraud” in Minnesota in which fraudsters stole billions of dollars in taxpayer funds. Those participating in the scams would lie about the number of people they serve through various welfare programs. Then, they would pocket the funds sent for this purpose and use it on luxury expenses. In some cases, Somali fraudsters sent taxpayer funds to al-Shabaab, a vicious radical Islamic terrorist group in Somalia.
Cruz recently chaired a Senate Judiciary Subcommittee hearing titled “Somali Scammers: Fighting Fraud in Minnesota and Beyond.” Journalist David Hoch recalled visiting Somali daycare sites and finding them largely empty — even though they received millions in funding.
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