> At a Glance
> – Gov. Greg Abbott told two agencies to hunt for child-care subsidy fraud
> – Texas already posts a 0.43% improper-payment rate vs. 11% in Minnesota
> – Agencies must report findings by month’s end
> – Why it matters: Tighter oversight aims to keep state tax dollars from being siphoned off by dishonest providers
Following reports of widespread fraud in Minnesota’s social-services programs, Texas Governor Greg Abbott has told state regulators to scour the Lone Star State’s child-care funding system for similar abuse.
The Governor’s Directive
In a letter released Monday, Abbott ordered the Texas Workforce Commission and the Texas Health and Human Services Commission to launch investigations into any potential misuse of taxpayer money within the Child Care Services Program.
> “Recently, the Trump Administration and independent journalists have uncovered potential systematic fraud in subsidized child care systems in states like Minnesota. Such fraud will never be tolerated in Texas.”
>
> – Governor Greg Abbott

Six-Point Action Plan
The agencies must complete the following by the end of the month:
- Identify high-risk providers and conduct extra site visits
- Review current data-collection practices for fraud gaps
- Verify that every provider accurately reports enrollment
- Audit oversight processes used by Local Workforce Development Boards-and force corrective action where standards slip
- Expand the online portal and hotline so residents can easily flag suspected fraud
- Forward all completed fraud cases to state or federal prosecutors
Current Track Record
Texas already claims one of the nation’s lowest error rates. Officials put improper payments at 0.43%, well below the roughly 11% reported in Minnesota.
Key Takeaways
- Abbott wants proof the existing safeguards actually work
- Results are due in weeks, not months
- Providers who falsify enrollment numbers are now in the cross-hairs
- Texans get new tools to report suspicious activity
The governor’s move signals zero tolerance as lawmakers eye every line item in the state budget.

