New technology platform aims to strengthen child care oversight without disrupting access

A new technology platform launched this month aims to help states strengthen oversight of childcare subsidy programs while preserving access to care for families and providers.

Wonderschool announced the rollout of Wonderschool Oversight, a data-driven platform designed to help state agencies detect potential fraud earlier, conduct more timely audits, and improve payment integrity across childcare programs.

The platform builds on Wonderschool’s existing work with more than a dozen states, including Florida, New Mexico, Michigan, Missouri, West Virginia, and Illinois, where the company already provides technology to support childcare providers and public agencies.

The launch comes as several states, including Minnesota, have faced heightened scrutiny over weaknesses in childcare subsidy oversight following high-profile fraud cases that exposed gaps in data sharing, auditing, and real-time monitoring.

“Arizona employers consistently tell us that the lack of affordable, reliable child care makes it harder to recruit and retain workers, and that’s a real challenge for job creators across our state,” said Grace Appelbe, director of government affairs for the Arizona Chamber of Commerce & Industry. “The business community wants to be part of the solution, and we’re eager to work with employers, providers, and policymakers to develop childcare options that work for both workers and businesses. At the same time, any new public investment must be done responsibly, with strong oversight and accountability to ensure taxpayer dollars are used as intended.”

Childcare subsidy programs play a critical role in supporting working families and employers alike, but many states continue to rely on fragmented, paper-based systems that can make oversight challenging. According to Wonderschool, those manual processes can delay audits, obscure risk patterns, and create administrative burdens for both agencies and providers.

Wonderschool Oversight is designed to address those challenges by centralizing enrollment, attendance, billing, and licensing data into a single platform. Using advanced analytics and artificial intelligence, the system generates continuous, risk-based scoring to flag patterns that may warrant review, while providing “explainable” insights that allow agency staff to understand why an activity was flagged before taking action.

Importantly, the company says the platform is intended to strengthen accountability without creating unnecessary disruptions for providers or families who rely on childcare subsidies.

“The childcare providers that American families rely on are, themselves, often reliant on manual, paper-intensive processes that can exacerbate the oversight challenge for state and federal funders,” said Chris Bennett, CEO of Wonderschool. “Our work with both states and high-quality providers puts us in a unique position to create tools that streamline provider operations while giving agencies visibility into the administration of critical public benefits for children.”

States can deploy Wonderschool Oversight as a standalone solution that integrates with existing subsidy management, licensing systems, and third-party childcare management systems, allowing agencies to implement oversight tools quickly and scale over time. The platform can also be paired with Wonderschool’s broader suite of childcare management, subsidy, and licensing solutions, which are already used by states to expand access, streamline administration, and identify potential misuse earlier in the process.

As states continue to focus on improving accountability for public dollars while expanding access to reliable childcare, technology-driven tools like Wonderschool Oversight may offer a path to achieving both goals simultaneously.

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