Is Ohio doing enough to protect against child care fraud?

Soon after, Ohio Gov. Mike DeWine and Department of Children and Youth director Kara Wente held a press conference to say Ohio’s child care system is heavily safeguarded.

Wente said in February that 124 program integrity referrals had been made to the department in 2025, with 24 of those providers now blocked from getting state funding from the state’s largest program that helps low-income families pay for child care. Of the remaining referrals, 70 resulted in corrective action but were found not to have intended to commit fraud, and 30 referrals were closed with no further action needed.

Wente said about $2.5 million was identified in overpayments.

“Fraud cannot be tolerated because every dollar being misused is a dollar not going to a child and family,” Wente said.

The federal government is no longer withholding Ohio’s child care funds. More than half of the total funding that Ohio uses to pay for daycare comes from federal funding, according to Policy Matters Ohio.

But the focus on child care fraud hasn’t stopped. House Bill 649, currently undergoing hearings in the Children and Human Services Committee, would require photos of children’s faces when they are dropped off that the state would be able to access for fraud investigations.

“Fraud detection today relies too heavily on after-the-fact tips rather than built-in safeguards to prevent fraud in the first place,” said state Rep. Josh Williams, R-Sylvania Twp., one of the co-sponsors of the bill.

Another bill, House Bill 647, sponsored by state Rep. Phil Plummer, R-Butler Twp., and Rep. Tom Young, R-Washington Twp., would eliminate child care payments based on hours and instead focus on enrollment, but would also allow the state to suspend a child care center’s license if it suspects the center has tried to commit fraud with public funds.

The bill would also increase state funding to look for fraud in the system. Young and Plummer said this would use money already allocated to the Ohio Department of Children and Youth but not spent.

Young said while introducing the bill that the state agency “knows what they’re doing” but that they need to step forward and make some changes.

Plummer agreed, saying the agency provided the representatives with “simple fixes to eliminate the fraud.”

“I don’t think this is as widespread as people told us,” Plummer said.

Oversight

Jodi Norton Trimble, spokeswoman for the Ohio Department of Children and Youth, said the primary ways the department provides oversight are through on-site inspection and data analysis.

The department conducted more than 10,600 unannounced inspections last fiscal year. Providers can expect at least one unannounced inspection each year.

Norton Trimble said her agency has a team that conducts monthly reviews of attendance and payment data. The team looks at overlapping care, dual authorizations, attendance patterns that exceed reasonable hours or billing that does not align with a facility’s capacity.

Attendance is confirmed through PIN protections that families are supposed to use when they drop children off, photo verification, QR codes and location checks. Payments are tied to documented care.

If something is flagged, the Ohio Department of Children and Youth opens a case review, where staff gathers documentation, verifies eligibility and attendance and contacts families and providers if necessary.

“We also conduct statistically valid random eligibility reviews to confirm income, household composition, and citizenship requirements,” Norton Trimble said.

She noted the agency launched a 400-case random review in January which is still underway.

“Our responsibility is clear: protect children, support honest providers, and ensure taxpayer dollars are used appropriately,” Norton Trimble said.

Reactions to the bills

Providers say bills that would require more out of child care centers to prevent fraud are unnecessary given Ohio’s current protections against care fund fraud are already better than most states.

“Ohio’s child care attendance and verification system is regarded as one of the most robust in the country, using parent identity verification via PIN, photo capture and ongoing state review,” said Karen Lampe of the Ohio Association of Child Care Providers and CEO of CWCC, Inc, a Dayton-area child care provider overseeing Creative World of Learning, Inspire Center for Learning and Creative World of Montessori.

Lampe said at CWCC, there is an extensive documentation process required by the state.

“While isolated cases of fraud can occur, the vast majority of child care providers in Ohio are operating with fiscal and moral integrity,” Lampe said.

Lynanne Gutierrez, president & CEO of Groundwork Ohio, an early childhood advocacy think tank, said she spoke with multiple families who found the idea of having their children’s faces heavily photographed and obtainable by the state scary.

“We support rigorous oversight and accountability and agree that credible allegations of fraud must be investigated swiftly, thoroughly, and by the appropriate authorities,” Gutierrez said. “At the same time, any changes to these safeguards must be carefully designed so that it does not intentionally disrupt access to care, destabilize providers, or compromise child safety.”

Child care payments

Data that this news outlet obtained from the Department of Children and Youth shows the largest payment in the region to a daycare center last year was $5.2 million to CWCC. The smallest payments in the region was $50 each to two at-home daycares, one in Lebanon and one in Hamilton.

Lampe, the CWCC CEO, said the $5.2 million payment was reimbursement for children eligible for publicly subsidized child care at multiple locations as well as state support to provide quality services.

Lampe said publicly subsidized care is a lower rate than many families who don’t qualify for state support pay. She noted child care has always been a business with slim margins and those who accept state funding face financial instability, rising costs and workforce shortages.

“It is imperative that state leaders focus their efforts on ensuring continued access to quality child care for Ohio’s working families,” Lampe said.