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1 (September 5, 2002)

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                                                            Order Code 97-408 EPW
                                                          Updated September 5, 2002



 CRS Report for Congress

              Received through the CRS Web




              Child Support Enforcement:
          New Reforms and Potential Issues

                         Carmen Solomon-Fears
                     Domestic Social Policy Division

Summary


     P.L. 104-193 (the 1996 welfare reform legislation) made major changes to the
 Child Support Enforcement (CSE) program. Some of the changes include requiring
 states to increase the percentage of fathers identified, establishing an integrated,
 automated network linking all states to information about the location and assets of
 parents, and requiring states to implement more enforcement techniques to obtain
 collections from debtor parents. Additional legislative changes were made in 1997,
 1998, and 1999, but not in 2000 or 2001. This report describes several aspects of the
 revised CSE program and discusses three issues that probably will be reexamined by the
 107'h Congress - CSE financing, parental access by noncustodial parents, and
 distribution of support payments. This report will be updated to reflect new
 developments and issues.


 Background

    The CSE program, Part D of Title IV of the Social Security Act, was enacted in
January 1975 (P.L. 93-647). The CSE program is administered by the Office of Child
Support Enforcement (OCSE) in the Department of Health and Human Services (HHS),
and funded by general revenues. All 50 states, the District of Columbia, Guam, Puerto
Rico, and the Virgin Islands operate CSE programs and are entitled to federal matching
funds. The following families automatically qualify for CSE services (free of charge):
families receiving (or who formerly received) Temporary Assistance to Needy Families
(TANF) benefits (Title IV-A), foster care payments, or Medicaid coverage. Other
families must apply for CSE services, and states must charge an application fee that
cannot exceed $25. (In addition, President Bush's FY2003 budget would require states
to charge a $25 annual fee to these other families if they have never received TANF
assistance and child support is collected on their behalf.) Child support collected on
behalf of nonwelfare families goes to the family (usually through the state disbursement
unit). Collections on behalf of families receiving TANF benefits are used to reimburse
state and federal governments for TANF payments made to the family.


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