Washington daycare investigation: The Center Square visited roughly three dozen taxpayer-subsidized daycares over six months and found only a few that appeared to have children present, yet no state official has announced an investigation.
U.S. Senate control: Democrat Graham Platner dropped out of Maine's Senate race Wednesday amid sexual assault allegations, upending a race central to the party's push to retake the chamber.
Immigration detention: The federal government bought two Southern California detention centers from a private prison operator for $1.5 billion.
Trump Accounts: The Social Security Administration will add Trump Account enrollment to newborn birth registration paperwork, with about 6 million children enrolled so far.
Microsoft lawsuit: Residents near Microsoft's Wisconsin data center filed a class-action lawsuit over noise, as a state audit estimates four data center projects will cost $1.5 billion in forgone sales tax.
Daycares collected hundreds of thousands in subsidies, but few showed signs of children
Photo: The Center Square
What we found: The Center Square visited roughly three dozen Washington daycares over six months that received hundreds of thousands of dollars in taxpayer subsidies, and only a few appeared to have children present. One West Seattle home collected more than $229,000 over nine months, according to state fiscal records, but residents there repeatedly said no daycare has ever operated at the address. A state audit released in March estimated $37 million in questionable childcare subsidy payments, though it found no confirmed fraud, and no state official has announced an investigation.
The stakes: These subsidies are state and federal tax dollars meant to pay for childcare for lower-income families. Payments to providers who aren't caring for children mean taxpayers foot the bill for services never delivered.
The backstory: Some officials have criticized the reporting instead of committing to investigate. Attorney General Nick Brown urged anyone who saw a reporter "harassing" a provider to call a hate crimes hotline, and Rep. Travis Couture, R-Allyn, says a Senate committee chairwoman stripped fraud prevention measures both parties had agreed on from a licensing bill. The questions carry national weight after Vice President JD Vance threatened in May to withhold federal Medicaid funds from states that fail to crack down on fraud.
Where it stands: Gov. Bob Ferguson told The Center Square in March he "would get back" to us on looking into potential fraud. His office has not responded to a follow-up request.
3 States
Maine: Democrat Graham Platner dropped out of the state's U.S. Senate race Wednesday after a former girlfriend accused him of sexual assault, allegations he calls "not remotely true." His exit upends a contest central to Democrats' push to flip the Senate's 53-47 Republican majority. The party will hold a special convention by July 27 to choose a new nominee. Former Maine Senate President Troy Jackson and former state Center for Disease Control director Nirav Shah have already jumped into the race.
California: The U.S. Department of Homeland Security bought two Southern California immigration detention centers from private prison operator CoreCivic for $1.5 billion. CoreCivic will continue operating both facilities under its existing ICE contracts. DHS said the purchase was made possible by the One Big Beautiful Bill Act and preserves detention capacity on the West Coast as California phases out privately owned detention facilities.
Texas: The U.S. Supreme Court declined to hear a challenge to Texas' 2021 election security law banning paid ballot harvesting, leaving the law in effect. It is the court's third action in six months upholding Texas election law. According to Ballotpedia, only four states limit ballot returns to voters themselves.
2 Issues
Economy: Trump Accounts, tax-advantaged investment accounts for children created by the Working Families and Tax Cuts Act, went live July 4 with about 6 million children enrolled, and roughly 1.4 million qualify for the $1,000 federal seed contribution, according to media reports. The Social Security Administration will build enrollment into newborn birth registration paperwork. The Joint Committee on Taxation estimates the accounts will cost more than $15 billion through 2034, and more if Congress extends the program. That means the cost will fall on new parents and taxpayers alike.
Energy: Residents near Microsoft's newly completed Fairwater data center in Mount Pleasant, Wisconsin, filed a class-action lawsuit over what they call excessive noise, and the suit estimates more than 1,000 people within 1.5 miles could join. It lands as a Legislative Audit Bureau report estimates Wisconsin will forgo $1.5 billion in sales tax revenue during construction of four data center projects, plus $369 million annually afterward.
1 Number
5%
The rise in oil prices this week after President Donald Trump threatened new strikes on Iran, with Brent crude oil at $77 per barrel. The U.S. military struck Iran overnight after three commercial ships were attacked in the Strait of Hormuz.
New census data shows worker migration could shift congressional seats after 2030
Texas, Florida, and North Carolina keep pulling in prime working-age Americans while California, New York, and Pennsylvania lose them, and the latest episode of The States breaks down which states could gain or lose seats in Congress because of it.
Brandon Johnson, mayor of Chicago
Johnson answered President Donald Trump's repeated invitations to call him about fighting crime, saying at a Tuesday briefing, "Consider this a call," and urging federal investment in affordable housing and public institutions instead of policing. His comments come as Chicago homicides hit their lowest level in more than a decade, according to the Illinois Policy Institute, and as the city prepares to replace retiring Police Superintendent Larry Snelling.
How much could Arizona's food stamp payment errors cost the state's taxpayers if the error rate doesn't improve?
Arizona's Supplemental Nutrition Assistance Program (SNAP) payment error rate hit 10.8% in fiscal year 2025, and new federal law requires states with rates above 10% to cover 15% of program costs starting in fiscal year 2028.
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