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1 (December 13, 2002)

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                                                            Order Code 97-408 EPW
                                                         Updated December 13, 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, 2001, or 2002. This report describes several aspects
 of the revised CSE program and discusses three issues that probably will be reexamined
 by the 108th 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. 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.

    Between FY1978 and FY2001, child support payments collected by CSE agencies
increased from $1 billion in FY1978 to $19.0 billion in FY2001, and the number of
children whose paternity was established (or acknowledged) increased by 1,312%, from


       Congressional Research Service **o The Library of Congress

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