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Committee OKs pilot to strengthen payment integrity for publicly funded childcare

Tennessee House Health Committee · March 24, 2026
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Summary

The 'Safe for Kids Act' (HB 23‑53) passed the committee to create a two‑year pilot to use analytics and third‑party oversight to detect childcare payment fraud using TennCare reserve funds; sponsor framed the bill as a response to fraud uncovered in other states.

The House Health Committee passed HB 23‑53, the 'Safe for Kids Act,' directing the Department of Human Services to establish a pilot (07/01/2026–06/30/2028) that uses third‑party analytics and oversight to strengthen payment integrity for publicly funded child‑care assistance.

Sponsor said the pilot would be funded by available reserve funds from TennCare and require the commissioner to contract with a qualified analytics vendor. Lawmakers framed the bill as a response to child‑care fraud discovered in Minnesota and said the pilot intends to prevent improper payments and strengthen oversight.

Committee members asked few detailed implementation questions in committee; the bill passed unanimously out of Health to Government Operations (20 ayes).