In early 2026, the U.S. Department of Health and Human Services (HHS) initiated a series of actions aimed at enhancing program integrity and curbing fraud across critical areas such as child care funding and telehealth services. These measures specifically address the oversight of child care and family assistance grant programs and the permissible frameworks for telemedicine, particularly in prescribing controlled substances.
Among the notable actions undertaken by HHS was the temporary restriction of access to certain federal child care and family assistance funds for five states: California, Colorado, Illinois, Minnesota, and New York. Announced on January 6, 2026, these restrictions affect funding from the Child Care and Development Fund (CCDF), Temporary Assistance for Needy Families (TANF), and the Social Services Block Grant (SSBG), collectively amounting to approximately .6 billion. The restrictions necessitate these states to provide justification and supporting documentation prior to any release of federal funds. This proactive approach underscores HHS’s commitment to enhancing oversight and accountability in the administration of vital federal programs.
Additionally, HHS’s Administration for Children and Families (ACF) has introduced a dedicated fraud reporting portal at childcare.gov, encouraging citizens to report suspected instances of fraud. This initiative exemplifies the agency’s intention to foster community involvement in the oversight process and enhance the detection of program misuse.
In a parallel move, HHS has proposed revisions to the payment rules governing child care providers, aiming to reinstate practices that were adjusted under the previous administration. The proposed changes would permit states to revert to attendance-based billing and eliminate federal preferences for contract slots over parent-directed vouchers. This approach seeks to bolster program integrity while allowing for greater flexibility in administrative operations at the state level.
In the realm of telehealth, HHS announced a fourth temporary extension of flexibilities that permit certain controlled medications to be prescribed via telemedicine without prior in-person consultations. This extension, running until December 31, 2026, aims to ensure continuous access to care for vulnerable populations, including seniors and individuals with disabilities, who heavily rely on telehealth services. The decision to extend these flexibilities reflects ongoing concern over patient access to essential medications and acknowledges the significant role of technology in healthcare delivery.
As these measures unfold, they align with HHS’s strategic priorities for fiscal year 2026, which emphasize preserving access to health services while implementing strict oversight measures. The actions signal HHS’s dual aim: preventing fraud and ensuring that access to care remains uninterrupted. This proactive stance suggests an anticipated evolution in regulatory frameworks, with possible long-term implications for both healthcare providers and beneficiaries.
In summary, the early actions of 2026 taken by HHS highlight an increased focus on accountability, comprehensive administration, and patient access within federal programs. Stakeholders in the healthcare and child care sectors are urged to remain vigilant and engaged, monitoring developments closely as regulations evolve and compliance practices are reinforced.