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flag Texas launches investigation into child care funding fraud amid federal probe and viral video, despite low fraud rate.

flag Texas Governor Greg Abbott has ordered a state investigation into potential fraud in the child care funding system, directing agencies to strengthen oversight, conduct additional site visits, and review data to verify enrollment and prevent misuse of taxpayer dollars. flag The move follows a federal probe and viral video alleging fraud in Minnesota, though Texas’s improper payment rate remains low at 0.43%. flag Agencies must identify high-risk providers, improve reporting tools, and refer cases to prosecutors, with progress reports due by January 31 and a final report by February 27.

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