Recent news from other states has highlighted serious cases of fraud and abuse in child care subsidy programs. These stories have raised understandable concerns about how public funds are protected and how children are kept safe.

In Idaho, ensuring program integrity, accountability, and compliance in the Child Care Program is a top priority.

The Idaho Department of Health and Welfare (DHW) has intensified its efforts to prevent, detect, and address fraud, waste, and abuse — while continuing to support child care providers who serve families responsibly and ethically across the state.

A focus on compliance

DHW has long maintained processes to identify and address fraud across all benefit programs, including child care. In the past, the department has:

• Identified cases of non-compliance and fraud
• Referred cases for prosecution when appropriate
• Recovered misspent funds

However, until recently, existing staffing levels only allowed the department to conduct annual reviews of about 25% of participating child care providers. That level of oversight is not sufficient. We have a responsibility to Idaho taxpayers, families, and children to do better.

A 360-degree review of all providers

In early January, investigative staff were redirected to launch a comprehensive, 360-degree compliance review of all 775 providers participating in Idaho’s Child Care Program.

This effort includes:

• On-site inspections of designated providers, which includes a review of documents
• Off-site audits (also called desk audits) of designated providers
• Review of billing, attendance, and program requirements
• Immediate action when potential fraud or serious non-compliance is identified
• Ten full-time staff conducting these reviews statewide

Progress to date

Reviews began in mid-January and are targeted for completion by mid-March. As of early February:

• 244 on-site visits have been completed; document review is ongoing
• 100 notices have been sent for off-site reviews
• 9 providers have been terminated
• 25 providers are receiving additional scrutiny and may face further action

When providers are found out of compliance, DHW takes appropriate action — up to and including payment suspension, program termination, and referral for prosecution.

Supporting providers who do the right thing

To be clear: most Idaho child care providers are doing the right thing.

They provide safe, reliable care for children and support working families and communities across Idaho. DHW values their dedication and hard work, and this compliance effort is not meant to create unnecessary burden for providers who are following the rules.

Strong oversight protects both families and ethical providers by ensuring a fair, trustworthy system.

Building sustainable oversight

To ensure 100% of providers can be reviewed annually moving forward, DHW has asked the Idaho Legislature for five additional staff positions dedicated to compliance and oversight in the Child Care Program. This investment would allow DHW to:

• Maintain full annual reviews
• Identify issues earlier
• Strengthen public trust
• Protect taxpayer dollars and children

The department looks forward to working with Idaho policymakers to continue strengthening this program.

Ongoing updates and how to report concerns

DHW will continue sharing regular updates on this work to promote transparency and accountability.

If you are aware of potential fraud, waste, or abuse in any DHW program, please report it. Every referral is reviewed.

Together, these efforts help ensure Idaho’s Child Care Program remains safe, responsible, and focused on serving children and families as intended.

• For more information, please read the letter we sent to Idaho lawmakers last week in response to their questions about the Idaho Child Care Program. 

Juliet Charron is director of the Department of Health and Welfare since September 2025. She served as the Idaho Medicaid administrator starting in November 2021 and was promoted to deputy director in June 2024. Prior to her move to Idaho, she held leadership positions with the Texas Medicaid program and the Texas Office of Inspector General.

The Idaho Department of Health and Welfare is dedicated to strengthening the health, safety, and independence of Idahoans. Learn more at healthandwelfare.idaho.gov.