Audit finds $37 million in questionable child care payments as oversight failures mount in Washington state
Auditors found the state often pays providers before verifying documentation, relying instead on audits after the fact, a system critics describe as “pay and chase.”
Ari Hoffman
Seattle WA
Mar 31, 2026
Washington’s troubled childcare subsidy system is facing renewed scrutiny after a sweeping new state audit found tens of millions of dollars in questionable payments, adding to a growing list of red flags involving oversight failures, missing records, and weak financial controls at the Department of Children, Youth and Families (DCYF).
The Washington State Auditor’s Office (SAO) released its annual review of $23.7 billion in federal funds across 28 programs, identifying serious weaknesses in how the state detects improper payments in child care subsidies. Auditors estimate that those failures contributed to $37 million in questionable payments in 2025 alone, according to KOMO news.
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According to the audit, problems with documentation and verification continue to plague the system, including $27.2 million in questionable payments tied to the federal Child Care Development Fund, and $9.9 million in questionable payments tied to Temporary Assistance for Needy Families (TANF).
Providers also failed to produce attendance records, overbilled for services, or lacked required parent signatures. Auditors found the state often pays providers before verifying documentation, relying instead on audits after the fact, a system critics describe as “pay and chase.”
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Even DCYF’s own internal reviews paint a troubling picture. 67 percent of audits identified overpayments, while 22% of payments reviewed were overpayments, totaling $2.2 million.
https://thepostmillennial.com/audit-finds-37-million-in-questionable-child-care-payments-as-oversight-failures-mount-in-washington-state
