WASHINGTON, D.C. — Today, Congressman Dan Meuser’s (PA-09) released the following statement after becoming the lead Republican sponsor of H.R. 9553, the Child Care Small Business Insight and Improvement Act, bipartisan legislation that would increase the U.S. Small Business Administration’s (SBA) role in supporting and overseeing for-profit child care small businesses nationwide.
The Child Care Small Business Insight and Improvement Act would require the SBA to designate a dedicated staffer to oversee and support America’s child care small businesses, and to conduct a study of child care centers, the challenges they face, and to provide recommendations for needed changes. The bill would also direct the SBA to further monitor fraud of federal support flowing to child care small businesses.
An estimated 11.2 million children in the United States are served by child care centers each year, enabling more than 14 million working parents to participate in the workforce. Nearly all firms in the child care industry are small businesses, according to the SBA.
Earlier this year, investigative reporters uncovered rampant misuse of federal support at child care centers, particularly in Minneapolis, Minnesota, including the infamous “Learing Center.” This legislation would help identify and eliminate fraud at these organizations, save taxpayer dollars, and ensure that federal assistance goes only to legitimate child care centers.
According to a June report published by the House Oversight and Investigations Committee, Minnesota state officials identified a pattern of fraudulent billing within the state’s Child Care Assistance Program as early as 2019. This report alleges that $71.6 million in potential fraud occurred in this program.
“Access to child care is vital for families across Pennsylvania and the entire country,” said Congressman Meuser. “This legislation would direct the SBA to increase support to small business child care centers, allowing more families to take advantage of affordable and high-quality child care. Crucially, the bill would also help federal officials identify and eliminate fraud at child care centers to ensure that federal assistance is supporting American families, not scam artists. Congratulations to Congressman Landsman for introducing an outstanding bill, and I look forward to shepherding this legislation through Congress."
“Child care is essential infrastructure for our economy — and when families cannot find or afford it, businesses lose workers and our nation loses an estimated $172 billion each year in earnings and productivity,” said Robert S. Carl, Jr., President and CEO of the Schuylkill Chamber of Commerce. “This is why 81 local chambers across Pennsylvania have been urging policy makers to address the child care teacher shortage and the broken business model that leaves providers struggling, teachers underpaid, and families without reliable care. I thank Congressman Meuser for his leadership in seeking these solutions.”
The Child Care Small Business Insight and Improvement Act was introduced by Congressman Greg Landsman (OH-01). The bill has been referred to the House Committee on Small Business for further consideration.