Distribution of Child Support Collections (CRS Report for Congress)
| Release Date |
March 4, 2003 |
| Report Number |
RS20837 |
| Report Type |
Report |
| Authors |
Carmen Solomon-Fears, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
Summary:
P.L. 104-193 , the 1996 welfare reform law, substantively changed the rules governing how child
support collections are distributed among families, states, and the federal government. The general
rules in effect as of October 1, 2000 are that child support collected during the time a family receives
cash welfare belongs to the state; current child support and arrearages (past-due payments) that are
owed to a family that is no longer receiving welfare belongs to the family; and child support owed
to a family that never received welfare belongs to the family. This is referred to as the "families
first" child support distribution policy. (These "families first" distribution rules do not apply to child
support collections made by intercepting federal income tax refunds.) Many policymakers contend
that Congress should simplify the child support distribution system which currently requires the
tracking of six categories of arrearage payments to properly pay custodial parents. Legislation that
included provisions to simplify child support distribution procedures and provide more of the child
support collected to custodial parents (rather than the government) was passed by the House in the
106th and 107th Congresses, but not by the Senate. Similar legislation has been reintroduced as part
of the welfare reauthorization measure in the 108th Congress. This report will be updated as needed
to reflect legislative activity.
