State audit finds $37 million in 'questionable' Washington child-care subsidy payments in FY2025; DCYF disputes fraud framing but plans to tighten controls
Subject of this story
Also named
What happened
A Washington State Auditor's Office report published March 30, 2026 found the Department of Children, Youth and Families made an estimated $37 million in questionable child-care subsidy payments in fiscal year 2025 — $27.2 million in federal Child Care Development Fund payments and $9.9 million in Temporary Assistance for Needy Families payments — because the state lacks pre-payment documentation checks and some providers didn't produce attendance records or required parent signatures. State Auditor Pat McCarthy said the findings 'warrant follow-up' but did not identify fraud; DCYF said federal audits have not identified any misuse of funds and that the SAO's 'questionable' label reflects the auditor's own projections, while committing to strengthen internal controls.
By the numbers (2)
● confirmed by a primary document · ○ reported
Figures
1 source
- sao.wa.govDocument
$27.2 million in questionable payments with federal Child Care Development Funds
1 source
- sao.wa.govDocument
$9.9 million in questionable payments with TANF program funds
Sources (3)
Response
Contacted and responded — exact wording not on record.
What happened next (0)
No outcome recorded yet.