BOISE, ID – The Idaho Department of Health and Welfare has stepped up reviews of child care subsidies as part of a broader effort to prevent fraud, waste and abuse in public programs.
In response to national interest in child care program integrity, the department said it has been working closely with Gov. Brad Little to conduct heightened reviews of previously disbursed child care funds. Since late December, DHW has redirected staff to expand resources supporting the reviews and related actions, including terminating providers when appropriate.
DHW Director Juliet Charron said safeguarding taxpayer dollars is a matter of public confidence.
“Safeguarding taxpayer dollars that support working families and vulnerable children is critical and an issue of public confidence we do not take lightly,” Charron said in a statement. She added that proactive prevention and detection efforts help preserve services for families who need them and that any fraudulent activity will be prosecuted under state and federal law.
The department said staff conduct daily activities to prevent, detect and report waste, fraud and abuse. Outcomes of reviews can range from correcting overpayments to referrals for potential prosecution in cases of intentional misuse.
DHW recently completed an evaluation of federal child care fund distribution through targeted reviews of 25% of a randomly selected sample of participants. The evaluations examined provider eligibility, attendance records and compliance with program requirements. Discrepancies such as unsupported claims and noncompliant expenditures were documented, and confirmed overpayments triggered corrective actions and recovery efforts.
Between 2022 and 2025, child care staff conducted 1,045 grant evaluations involving 652 unique child care businesses statewide. Those included evaluations of relative providers, family providers, group providers, small and large child care centers, and several school districts with multiple child care sites. The number of evaluations increased significantly in 2023, when a temporary staff member was hired to assist with the workload.
As part of the review process, staff made 93 referrals for training related to business practices. Common issues identified included missing or insufficient records on the use of grant funds, incomplete attendance records and funds received for staff who were not eligible.
The evaluations were conducted across counties statewide, with the highest numbers in Ada, Canyon and Kootenai counties.
Since 2022, DHW has taken 45 regulatory actions related to child care providers, with a steady increase over time. Those actions included license suspensions, license revocations and terminations from the Idaho Child Care Program. Most actions were related to serious health and safety failures, while others involved poor business practices or a combination of both.
The department said it will continue its efforts to review concerns, conduct audits and investigations, and take action to ensure child care funds are used appropriately.
