About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


1 1 (February 14, 2006)

handle is hein.crs/crsajee0001 and id is 1 raw text is: Order Code RS22377 February 14, 2006 CRS Report for Congress Received through the CRS Web Child Support Provisions in the Deficit Reduction Act of 2005 (P.L. 109-171) Carmen Solomon-Fears Specialist in Social Legislation Domestic Social Policy Division Summary Among other things, P.L. 109-171 (the budget reconciliation measure, now referred to as the Deficit Reduction Act of 2005 - S. 1932) made a number of changes to the Child Support Enforcement (CSE) program. The act will reduce the federal matching rate for laboratory costs associated with paternity establishment from 90% to 66%, end the federal matching of state expenditures of federal CSE incentive payments reinvested back into the program, and require states to assess a $25 annual user fee for child support services provided to families with no connection to the welfare system. P.L. 109-171 also simplifies CSE distribution rules and extends the families first policy by providing incentives to states to encourage them to allow more child support to go to both former welfare families and families still on welfare. In addition, P.L. 109-171 revises some child support enforcement collection mechanisms and adds others. The Congressional Budget Office (CBO) estimates that the CSE provisions contained in P.L. 109-171 will reduce federal costs of the CSE program by $1.5 billion over the five- year period FY2006-FY2010. This report will not be updated. Background Over the years, CSE has evolved into a multifaceted program. While recovery of costs to provide cash welfare to needy families with children still remains an important function, other aspects of the program include service delivery and promotion of self-sufficiency and parental responsibility. The CSE program has helped strengthen families by securing financial support for children from their noncustodial parent on a consistent and continuing basis, and by helping some families to remain self-sufficient and off public assistance by providing the requisite CSE services. Child support payments now are generally recognized as a very important income source for single-parent families. On average, child support constitutes 17% of family income for households that receive it (2001 data). Among poor families who receive it, child support constitutes about 30% of family income (2001 data). Congressional Research Service + The Library of Congress