Child Support and Welfare
Since the 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), a major impetus to collection of child support is the Welfare law. A custodial parent receiving public assistance, e.g., via Temporary Assistance for Needy Families (TANF), is required to assign child support to the Department of Welfare to receive assistance. The custodial parent must also pursue child support. Any payment is diverted to the welfare program as partial reimbursement. Typically the amount of child support equals or exceeds the assistance grant, allowing the family to leave the cash assistance program (potentially remaining eligible for food stamps, etc.) Other provisions of PRWORA require and assist the custodial parent to find employment (such as buying new work clothes). Child support enforcement programs in all 50 states are primarily federally funded. States whose enforcement is not in PRWORA compliance risk a 5% penalty.
Despite concerns that this provision generates government revenue, HHS reported that in fiscal year 2003, 90% of child support collections went directly to families. In 47 states the percent of payments going to families was 86% or more and in seven states exceeded 95%. Half of unpaid child support is owed to the government. Sherri Z. Heller, Ed.D, Commissioner of U.S. Office of Child Support Enforcement stated, "We need to be more aggressive about leveraging older debt owed to the government as an incentive to obtain more reliable payments of current support to families." Towards this end, the Social Security Administration provides up to $4.1 billion in financial incentives to states that create support and arrearage orders, and then collect.
Read more about this topic: Child Support In The United States
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