H.R. 7923

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7923 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7923

To amend the Child Care and Development Block Grant Act of 1990 to 
debar child care providers who commit fraud from receiving certain 
financial assistance, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 12, 2026

Mr. Stauber introduced the following bill; which was referred to the 
Committee on the Judiciary, and in addition to the Committee on 
Education and Workforce, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To amend the Child Care and Development Block Grant Act of 1990 to 
debar child care providers who commit fraud from receiving certain 
financial assistance, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Stop Fraud by Strengthening 
Oversight and More Accountability for Lying and Illegal Activity Act'' 
or the ``Stop Fraud by SOMALIA Act''.

SEC. 2. NONCOMPLIANCE DUE TO FRAUD.

Section 658I(b) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858g(b)) is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) Noncompliance due to fraud.--
``(A) Definition.--In this paragraph, the term 
`final determination of fraud' means a judicial 
decision or administrative order, for which all rights 
to appeal have been exhausted or waived, that 
determines that a child care provider--
``(i) knowingly submitted a false statement 
or documentation to obtain funds appropriated 
under any authority and available under this 
subchapter;
``(ii) misrepresented ownership of, 
enrollment at, attendance at, or services 
provided through a program of child care 
services, or the eligibility of the provider to 
provide such a program, to obtain such funds;
``(iii) to obtain such funds, operated 
without State licensing that is required under 
section 658E(c)(2)(F);
``(iv) made a knowing and improper 
expenditure of such funds; or
``(v) engaged in any other conduct related 
to such funds that constituted fraud under 
Federal or State law.
``(B) Reimbursement.--If the Secretary finds that 
there has been a final determination of fraud by a 
child care provider that received funds described in 
subparagraph (A)(i) from a State, the Secretary shall 
notify the State of the finding and shall require that 
the State reimburse the Secretary for the financial 
assistance that was the subject of the determination of 
fraud (referred to in this paragraph as `financial 
assistance obtained through fraud'), that the Secretary 
deduct from the administrative portion of the State 
allotment for the following fiscal year an amount that 
is less than or equal to the financial assistance 
obtained through fraud, or a combination of such 
options.
``(C) Additional sanctions.--If the Secretary makes 
a finding described in subparagraph (B), the Secretary 
may, in addition to imposing the sanctions described in 
such subparagraph, impose other appropriate sanctions, 
including recoupment of money improperly expended for 
purposes prohibited or not authorized by this 
subchapter, and disqualification from the receipt of 
financial assistance under this subchapter.
``(D) Mandatory permanent debarment.--
``(i) Debarment.--If the Secretary makes a 
finding described in subparagraph (B), the 
Secretary shall permanently debar the provider 
from participating in, or receiving financial 
assistance under, any Federal child care 
assistance program funded in whole or in part 
by the Department of Health and Human Services.
``(ii) No reinstatement.--No person may 
waive, reverse, or reduce the period or scope 
of a debarment made under clause (i). No child 
care provider, subject to such a debarment, may 
regain eligibility to participate in or receive 
financial assistance under a program described 
in clause (i) by changing the name of the 
provider or the program offered by the 
provider, by reorganizing, by merging with 
another entity, or by repaying the financial 
assistance that is the subject of the final 
determination of fraud.
``(iii) State compliance.--A State that 
receives funds described in subparagraph (A)(i) 
shall deny such participation, and such 
financial assistance, to any child care 
provider debarred under clause (i).
``(E) Mandatory referral for federal criminal 
investigation and prosecution.--If a debarment made 
under subparagraph (D) is based on an administrative 
order, the Secretary shall refer the matter, including 
the administrative record containing the final 
determination of fraud, the order, and any supporting 
documentation, to the Attorney General to initiate a 
Federal criminal investigation and, if warranted, 
prosecution for fraud under chapter 47 of title 18, 
United States Code.''.

SEC. 3. INADMISSIBILITY FOR ALIEN CHILD CARE PROVIDERS WHO COMMIT 
FRAUD.

Section 212(a)(2) of the Immigration and Nationality Act (8 U.S.C. 
1182(a)(2)) is amended--
(1) by redesignating subparagraph (F) as subparagraph (J), 
and moving the redesignated subparagraph so it appears after 
subparagraph (I); and
(2) by inserting after subparagraph (E) the following:
``(F) Fraud.--Any alien child care provider who has 
been permanently debarred as a child care provider, 
based on a final determination of fraud, under section 
658I(b)(3)(D) of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858g(b)(3)(D)).''.

SEC. 4. INADMISSIBILITY FOR ALIEN CHILD CARE PROVIDERS WHO PROVIDE 
SUPPORT TO TERRORISTS.

Section 212(a)(3)(B)(i) of the Immigration and Nationality Act (8 
U.S.C. 1182(a)(3)(B)(i)) is amended--
(1) in subclause (VIII), by striking ``or'' at the end;
(2) by redesignating subclause (IX) as subclause (XI);
(3) by inserting after subclause (VIII) the following:
``(IX)(aa) has been permanently 
debarred as a child care provider, 
based on a final determination of 
fraud, under section 658I(b)(3)(D) of 
the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 
9858g(b)(3)(D)); and
``(bb) the Attorney General, the 
Secretary of State, or the Secretary of 
Homeland Security has determined has 
received funds as a child care provider 
that were used to support any terrorist 
organization, including Al-Shabaab, or 
any individual engaged in terrorist 
activity;
``(X) is an officer, official, 
representative, spokesperson, or member 
of, or is in any way associated with--
``(aa) the Palestine 
Liberation Organization; or
``(bb) al-Shabaab 
(including any other alias for 
al-Shabaab); or''; and
(4) by striking the undesignated matter at the end.

SEC. 5. REMOVABILITY, AND INELIGIBILITY FOR ASYLUM AND ADJUSTMENT OF 
STATUS, FOR ALIEN CHILD CARE PROVIDERS WHO COMMIT FRAUD.

(a) Deportability.--Section 237(a)(2)(A) of the Immigration and 
Nationality Act (8 U.S.C. 1227(a)(2)(A)) is amended--
(1) by redesignating clause (vi) as clause (vii);
(2) by inserting after clause (v) the following:
``(vi) Any alien who has been permanently 
debarred as a child care provider, based on a 
final determination of fraud, under section 
658I(b)(3)(D) of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 
9858g(b)(3)(D)), is deportable.''; and
(3) in clause (vii), as redesignated, by striking ``and 
(iv)'' and inserting ``(iv), and (vi)''.
(b) Ineligibility for Asylum.--
(1) In general.--Section 208 of the Immigration and 
Nationality Act (8 U.S.C. 1158), is amended--
(A) in subsection (a)(2)--
(i) by redesignating subparagraph (E) as 
subparagraph (F); and
(ii) by inserting after subparagraph (D) 
the following:
``(E) Paragraph (1) shall not apply to an alien who 
has been permanently debarred as a child care provider, 
based on a final determination of fraud, under section 
658I(b)(3)(D) of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858g(b)(3)(D)).''; and
(B) in subsection (b)(2)(A)--
(i) in clause (v), by striking ``or'' at 
the end;
(ii) by redesignating clause (vi) as clause 
(vii); and
(iii) by inserting after clause (v) the 
following:
``(vi) the alien has been permanently 
debarred as a child care provider, based on a 
final determination of fraud, under section 
658I(b)(3)(D) of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 
9858g(b)(3)(D)).''.
(2) Conforming amendment.--Section 316 of the Immigration 
and Nationality Act (8 U.S.C. 1427(f)(1)) is amended, in the 
second proviso, by striking ``clauses (i) through (v)'' and 
inserting ``clauses (i) through (vi)''.
(c) Ineligibility for Adjustment of Status.--Section 245(c) of the 
Immigration and Nationality Act (8 U.S.C. 1255(c)), is amended--
(1) in paragraph (7), by striking ``; or'' and inserting a 
semicolon; and
(2) by striking the period at the end and inserting ``; or 
(9) any alien who has been permanently debarred as a child care 
provider, based on a final determination of fraud, under 
section 658I(b)(3)(D) of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858g(b)(3)(D)).''.
(d) Exclusion From Finding of Good Moral Character.--Section 101(f) 
of the Immigration and Nationality Act (8 U.S.C. 1101(f)) is amended by 
inserting after paragraph (1) the following:
``(2) a person who has been permanently debarred as a child 
care provider, based on a final determination of fraud, under 
section 658I(b)(3)(D) of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858g(b)(3)(D));''.

SEC. 6. MANDATORY DETENTION AND EXPEDITED REMOVAL.

(a) Expedited Removal of Inadmissible Alien Child Care Providers.--
Section 235 of the Immigration and Nationality Act (8 U.S.C. 1225), is 
amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Removal of Aliens Inadmissible Due to Child Care Provider 
Fraud.--
``(1) Removal without further hearing.--If an immigration 
officer or an immigration judge suspects that an arriving alien 
or an applicant for admission may be inadmissible under section 
212(a)(2)(F), the officer or judge shall--
``(A) order the alien removed, subject to review 
under paragraph (2);
``(B) report the order of removal to the Secretary 
of State, the Attorney General, or a designee of the 
Secretary or Attorney General; and
``(C) refrain from conducting any further inquiry 
or hearing with respect to such alien until ordered to 
do so by the Secretary, the Attorney General, or a 
designated senior official.
``(2) Review of order.--
``(A) In general.--The Secretary of Homeland 
Security, the Attorney General, or a designee of the 
Secretary or Attorney General shall review each order 
issued pursuant to paragraph (1)(A).
``(B) Expedited removal.--If the Secretary, the 
Attorney General, or a designee determines that the 
alien who is the subject of such order is inadmissible 
under section 212(a)(2)(F), the Secretary or the 
Attorney General may order the alien removed without 
further inquiry or hearing.
``(C) Further inquiry.--If the Secretary or the 
Attorney General does not order the removal of the 
alien pursuant to subparagraph (B), the Secretary, the 
Attorney General, or a designee may determine the scope 
of further administrative inquiry or hearing that may 
be conducted with respect to such alien.
``(3) Submission of statement and information.--Each alien 
who is the subject of a removal order under this subsection, or 
the alien's representative, may submit a written statement and 
additional information for consideration by the Secretary of 
Homeland Security, the Attorney General, or a designee of the 
Secretary or the Attorney General.''.
(b) Mandatory Detention for Convicted Alien Child-Care Providers.--
Section 236(c)(1)(B) of the Immigration and Nationality Act (8 U.S.C. 
1226(c)(1)(B)), is amended by striking ``offense covered in section 
237(a)(2)(A)(ii), (A)(iii), (B), (C), or (D),'' and inserting 
``described in subparagraph (A)(ii), (A)(iii), (A)(vi), (B), (C), or 
(D) of section 237(a)(2);''.
(c) Expedited Removal for Incarcerated Alien Child-Care 
Providers.--Section 238 of the Immigration and Nationality Act (8 
U.S.C. 1228) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``any criminal 
offense covered in section 241(a)(2)(A)(iii), (B), (C), 
or (D), or any offense covered by section 
241(a)(2)(A)(ii) for which both predicate offenses are, 
without regard to the date of their commission, 
otherwise covered by section 241(a)(2)(A)(i)'' and 
inserting ``any criminal offense described in 
subparagraph (A)(iii), (A)(vi), (B), (C), or (D) of 
section 237, or any offense described in section 
237(a)(2)(A)(ii) for which both predicate offenses are, 
without regard to the date of their commission, 
otherwise described in section 237(a)(2)(A)(i)''; and
(B) in paragraph (2), by inserting ``, or an alien 
who has been permanently debarred as a child care 
provider, based on a final determination of fraud, 
under section 658I(b)(3)(B) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 
9858g(b)(3)(B)),'' after ``aggravated felony'';
(2) in subsection (b), by inserting ``or under section 
237(a)(2)(A)(vi) (relating to a conviction for child-care 
provider fraud)'' after ``aggravated felony)''; and
(3) by redesignating the second subsection (c) (previously 
so designated by section 671(b)(13) of the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996 (division C of 
Public Law 104-208)) as subsection (d).

SEC. 7. EXEMPTION FROM PAPERWORK REDUCTION ACT AND THE ADMINISTRATIVE 
PROCEDURE ACT.

(a) Paperwork Reduction Act.--Nothing in this Act may be construed 
to require the Secretary of Health and Human Services, Secretary of 
Homeland Security, or Attorney General to comply with the requirements 
of chapter 35 of title 44, United States Code (commonly referred to as 
the ``Paperwork Reduction Act'') to implement the provisions of 
sections 3 through 6 of this Act, if the Secretary of Health and Human 
Services, Secretary of Homeland Security, or Attorney General, 
respectively, determines that compliance would impede the immediate 
implementation of this Act or the amendments made by this Act.
(b) Administrative Procedure Act.--Nothing in this Act may be 
construed to require the Secretary of Health and Human Services, 
Secretary of Homeland Security, or Attorney General to promulgate 
regulations under subchapter II of chapter 5 of title 5, United States 
Code (commonly referred to as the ``Administrative Procedure Act''), if 
the Secretary of Health and Human Services, Secretary of Homeland 
Security, or Attorney General, respectively, determines that 
promulgation would impede the immediate implementation of this Act or 
the amendments made by this Act.

SEC. 8. CONSTRUCTION; SEVERABILITY.

Any provision of this Act or an amendment made by this Act held to 
be invalid or unenforceable by its terms, or as applied to any person 
or circumstance, shall be construed so as to give it the maximum effect 
permitted by law, unless such holding shall be utterly invalid or 
unenforceable, in which event such provision shall be deemed severable 
from this Act or the Act amended, respectively and shall not affect the 
remainder of this Act or the Act amended, respectively, or the 
application of such provision to other persons not similarly situated 
or to other, dissimilar circumstances.

SEC. 9. EFFECTIVE DATE; APPLICABILITY.

(a) In General.--Except as provided in subsection (b), this Act and 
the amendments made by this Act shall take effect on the date of 
enactment of this Act.
(b) Applicability.--The amendments made by sections 3 through 6 of 
this Act shall apply to any conduct by an alien that constituted fraud 
and was committed on or after September 30, 1996, against any private 
individual, fund, corporation, or government entity, for which the 
alien has not yet been arrested, charged, or indicted as of the date of 
the enactment of this Act.
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