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FOIA Number: 2011-0586-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
Press Secretary
Series/Staff Member:
Mike McCurry
Subseries:
OA/ID Number:
11102
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Folder Title:
Child Support
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94
3
10
1
06/18/96
11:55
202 690 5673
HHS-PUBLIC AFFAI
002
Child Support Executive Action
Additional Questions and Answers
Question:
When will these changes take place? When will women need to cooperate with paternity
establishment prior to receiving benefits?
Answer:
Under the Congress' Administrative Procedures Act, the Department is required to follow a
specific timetable when it proposes regulations such as these. First, we must publish a notice
of proposed rulemaking, which must be open for public comment for 60 days. We then are
required to publish a final rule, which can take effect 30 days later. So the paternity
establishment piece of this will take effect in a few months. Since the new hire program doesn't
require any new regulations, it will start soon.
Question:
What happens when a match is made under the new hire program? What's the mechanism for
withholding the delinquent parent's wages?
Answer:
Let's say that New York has an outstanding child support case, and Texas has reported that the
delinquent parent has taken a job in Texas. HHS will make the match between the states and
will notify New York that the delinquent parent is working in Texas. New York will then issue
a wage withholding order, which Texas will have to honor. This will all be done between the
states -- the Federal government's role is to link states through the new hire program. However,
in this case. for example, both New York and the Federal government will benefit from any
welfare savings resulting from the child support that is collected.
Question:
Why haven't you already done this?
Answer:
We didn't do this earlier because we wanted a bipartisan welfare reform bill that included the
President's comprehensive child support enforcement proposals: streamlined paternity
establishment and stricter cooperation requirements: a national new hire reporting system;
uniform interstate child support laws; computerized state-wide collections to speed up payments;
and tough new penalties, such as drivers' license revocation. We still want a bipartisan welfare
reform bill that contains these tough measures, which would increase child support collections
by an additional $24 billion and reduce federal welfare costs by $4 billion over the next 10
years.
06/18/96
11:56
202 690 5673
HHS-PUBLIC AFFAI
003
Question:
If child support is so important, why don't you support passing a bill separately?
Answer:
We still want a national, bipartisan welfare reform bill with the tough child support enforcement
measures the President has called for from the start, and we hope Congress will get the job
done. However, as the President said last week, "if for some reason we cannot reach agreement
on welfare reform this year -- and I still hope we can -- I believe WE ought to pass these
provisions that 100 percent of us agree on so that we can do more to hold people accountable
for the children they bring in the world and help these kids get the money they need and help
their parents get the money they need to do a good job in raising their children."
Question:
How do you know that all 25 states will participate in the new hire program?
Answer:
Already, we have confirmed that Washington and Florida will sign up, although the program
was just announced. This program has such obvious advantages to states that we believe all
states will want to participate.
06/17/96
11:28
202 690 5673
HHS-PUBLIC AFFAI
002
EXECUTIVE ACTION ON CHILD SUPPORT
Today, President Clinton announced three actions to strengthen the child support enforcement system and
promote parental responsibility. These actions include: implementing a pilot program that will help track
non-paying parents across state lines; challenging all states to adopt statewide new hire reporting programs;
and issuing new regulations requiring women who apply for welfare to comply with paternity establishment
requirements before receiving benefits. The President also announced the approval of the 40th welfare
reform waiver granted by his Administration.
A New Pilot Program for Interstate New Hire Reporting Approximately 30 percent of the current child
support caseload involves interstate cases, and the President announced today a new pilot program that will
help track parents across state lines. Under the new program, the twenty-five states with existing new hire
reporting systems will be able to send new hire information to the Department of Health and Human Services
(HHS). The data will then be matched by computer against lists of non-paying parents sent to the
department from all the states. When a match is made, HHS will contact the delinquent parent's current
state of residence so that the state can issue a wage garnishment order or institute paternity proceedings.
State New Hire Reporting Programs Although there is currently no interstate program, twenty-five states
have already increased their own collections by requiring or encouraging employers to report new hires. In
Washington, for example, has reduced the time required to receive employment information from 178 days
to 43 days. That means better collections, faster wage garnishment, and more child support for children.
Under Washington's program, employers may report new hire information in a variety of ways -- computer
diskettes, tapes, or by faxing reports to a special 800 toll-free line. In addition, Washington's program is
extremely cost effective. For every dollar spent on the program, it returns approximately $20 in child
support collections. Florida's new hire program, made over 8,000 matches for child support cases in 1995
the annual amount of support owed under these cases is $15.2 million. Today, the President is challenging
the remaining 25 states to adopt new hire reporting programs.
New Regulations Requiring Mothers to Cooperate With Paternity Establishment Efforts Today,
President Clinton directed the Department of Health and Human Services to issue new regulations that
require all mothers who apply for welfare to cooperate with paternity establishment prior to receiving
benefits. This executive action will build upon the in-hospital paternity establishment program proposed by
the Clinton Administration and adopted by Congress. Applicants will be required to provide the name of the
father and other identifying information before they begin to receive benefits (subject to appropriate "good
cause" exceptions, such as danger of domestic violence etc.). Welfare applicants must also be referred to the
state child support agency within 2 days of application, SO that the agency can initiate a legal paternity action
if necessary.
Ending Welfare As We Know It Today, President Clinton announced approval of a statewide welfare
waiver for New Hampshire. The Clinton Administration has now approved 40 welfare waivers in 63
states more than all previous administrations combined. In addition, in 1995, the federal-state partnership
collected a record $11 billion from non-custodial parents, an increase of $3 billion or nearly 40 percent since
1992. Paternity establishments also increased by over 40 percent from 1992 to 1995. The measures
announced today will increase child support collections and continue to reform welfare state by state, but
they are not a substitute for national welfare reform legislation. In 1994, the President proposed five
measures to increase child support collections by an additional $24 billion and reduce federal welfare costs
by $4 billion over the next 10 years: streamlined paternity establishment; a national new hire reporting
system; uniform interstate child support laws; computerized state-wide collections to speed up payments;
and tough new penaltics, such as drivers' license revocation. At the President's urging, Congress and the
NGA have included all of the Administration's provisions for child support enforcement in their welfare
reform proposals. The President calls again on Congress to send him a clean bipartisan welfare bill that
requires worl: promoles parental responsibility. and protects children
06/17/96 11:31 202 690 5673
HHS-PUBLIC AFFAI
006
PATERNITY ESTABLISHMENT
Today, President Clinton took executive action to strengthen the child support enforcement system and
promote parental responsibility by toughening paternity establishment requirements for women who apply for
welfare. President Clinton is directing the Department of Health and Human Services to issue new regulations
which require all mothers who apply for welfare to cooperate with paternity establishment prior to receiving
benefits. He is also directing the department to clarify and strengthen the definition of cooperation. These
measures are designed to build on prior actions by the department that have already increased paternity
establishment by over 40 percent and child support collections by nearly 40 percent since 1992.
Paternity Establishment Under Current Law
Under current law, mothers are required to establish their children's paternity as a condition of welfare
receipt. However, efforts to determine cooperation and establish paternity are not usually made until months
after a mother has begun receiving benefits. In addition, cooperation standards are vague and poorly
enforced. As a result, paternity is often not established, child support is not paid, and taxpayers pick up the
tab. In fact, paternity is currently established in only 40 percent of all welfare cases.
Requiring Mothers to Cooperate With Paternity Establishment Efforts
As President Clinton has emphasized, our system ought to say to mothers, "help us identify and locate the
father, or you cannot get welfare, because parents have the primary responsibility for supporting their
children." That's why the President has ordered the Department of Health and Human Services to issue new
regulations which require all mothers to cooperate with paternity establishment prior to the receipt of welfare.
Mothers will be required to provide the name of the father and other identifying information at the time of
application before they begin to receive benefits (subject to appropriate exceptions for mothers with "good
cause" for not cooperating, such as being in danger of domestic violence). Welfare applicants must also be
referred to the state child support agency within 2 days of application, so that the agency can initiate a legal
paternity action. In addition, we're also making it easier for states to move compliance assessment from their
welfare agencies to their child support agencies.
Clarifying the Definition of Cooperation
Under the current regulations, "cooperation" with paternity establishment generally means that a welfare
recipient must show up for interviews and provide "relevant information in their possession" about their
child's father. Evidence suggests that some mothers know more information about the father than they are
currently providing to the welfare agency. Our new, stricter definition of "cooperation" requires that the
mother provide both the name of the father and some other identifying information such as the address, place
of employment, or social security number. / In addition, current regulations allow applicants and recipients to
receive AFDC payments before the actual determination of cooperation is made. Under the proposed
regulation, the determination of cooperation will be made during the application process. If the mother is not
cooperating she will not be eligible and will not begin to receive benefits. In addition, AFDC applicants will
be referred to the child support agency within two days of filing an application to speed up paternity
establishment efforts
Strengthening Our Commitment to Paternity Establishment
The Clinton Administration has made paternity establishment a top priority. Already, the Clinton
Administration has proposed, and Congress has adopted, a requirement for states to establish hospital-based
paternity programs as a proactive way to establish paternities early in a child's life. These programs are just
now being implemented, but early data from 31 states indicates that more than 200,000 paternities were
established through the in-hospital paternity acknowledgement program in 1995. The total number of X
paternities established has increased by over 40 percent since 1992. Still, more needs to be done. That is
why the President has ordered the Secretary of the Department of Health and Human Services to issue these
new regulations to increase paternity establishment, and urged Congress to pass a comprehensive welfare
reform hill that demands parental responsibility and protects children.
06/17/96
11:32
202 690 5673
HHS-PUBLIC AFFAI
007
STATES WITH NEW PATERNITY ESTABLISHMENT INITIATIVES
WAIVERS
Thirteen states have been granted waivers by the Clinton Administration to enable them to
create new paternity establishment initiatives. The following are examples of these initiatives:
Connecticut
Connecticut's "Reach for Jobs First" program provides escalating tougher sanctions than under
current law for a failure to cooperate, without good cause, with paternity cstablishment efforts.
Delaware
Under Delaware's "A Better Chance" program, the Division of Child Support Enforcement,
rather than the state welfare agency, determines whether or not a mother has cooperated with
paternity cstablishment efforts and the state will develop new cooperation criteria.
Ohio
To encourage paternity establishment for all children, Ohio's "A State of Opportunity"
program gives a one-time cash bonus of $150 to AFDC families when paternity is established
for a child under the age of 18.
Oregon
A disregard of income is granted for a special onc-time payment made to an applicant or
recipient who makes a material contribution in establishing the paternity of a child born out of
wedlock or in obtaining child support.
IN-HOSPITAL PATERNITY ESTABLISHMENT
In 1993 Congress passed a law proposed by President Clinton that required states to establish
hospital-based paternity establishment programs, as a pro-active way to establish paternity in a
child's life. Already early data from just 31 states reported more than 200,000 paternities
were established through the in-hospital paternity establishment programs in 1995. The
following are a few examples of successful programs:
Colorado
Colorado has enhanced its in-hospital voluntary paternity establishment program with a grant
from HHS's Child Support Improvement Demonstration Project. The program's simplified
application procedures, elimination of fees and waiting periods, and streamlined administrative
process has resulted in dramatic increases in voluntary acknowledgements 150 percent.
Massachusetts
Massachusetts has forged a strong partnership between its state agencies for revenue and
public health to design its in-hospital voluntary paternity establishment program. With
intensive training, technical assistance and a wide public awareness campaign, the program has
helped to more than double the number of paternities established.
Vermont
Vermont has reorganized its child support program and established a Family Court dedicated
solely to child support cases. Combined with the in-hospital voluntary paternity establishment
program, Vermont has increased its paternity establishment rate by 85 percent.
7/96
11:29
202 690 5673
HHS-PUBLIC AFFAI
004
PILOT NEW HIRE PROGRAM TO TRACK PARENTS ACROSS STATE LINES
New Hire Reporting Programs
Twenty-five states now have new-hire reporting programs that require or encourage employers to
report new hires to a state agency. That information is then cross-matched by computer against
lists of parents in the state who owe child support. When a match is found, the wages of that
obligor can then be garnished or other appropriate action, such as a paternity proceeding, can be
taken. These programs have been called the single biggest innovation in child support enforcement
in the past decade and have significantly increased collections in the states that have adopted them.
Today, the President is challenging the remaining 25 states to adopt similar new hire programs.
A New Pilot Program
While these programs can help to locate non-paying parents within a state, they cannot find those
who live and work in another state. Approximately 30 percent of all child support cases involve
parents who have moved across state lines. Today, the President is announcing a new pilot
program that will help track those parents who cross state lines to avoid their child support
obligations.
Under the new pilot program, the twenty-five states that have new hire reporting programs can
send that information to the Federal Parent Locator Service (FPLS), an existing program that is
run by the Department of Health and Human Services' Office of Child Support Enforcement
(OCSE). That data will then be matched by computer against lists of delinquent parents sent to
OCSE from all the states. When a match is made, the information on the child support obligor
will be sent back to the state so that the state can issue a wage garnishment order and send it to the
employer.
The Need for National Legislation
At the urging of the President, all the major national welfare bills now pending in Congress
include a comprehensive national computer system for tracking parents across state lines. This
system would have the capacity to match data every two days, and all states would be required to
submit data on new hires and child support cases for computer matching. If enacted, this new
system would increase child support collections by $6.4 billion and reduce Federal welfare
payments by $1.1 billion over 10 years. The program announced today will provide states with
valuable interim assistance in dealing with their interstate caseloads. To do more requires
Congressional legislation.
Under his welfare reform proposal, the President has proposed five measures to increase child
support collections by an additional $24 billion and reduce federal welfare costs by $4 billion
over the next 10 years: streamlined paternity establishment; a national new hire reporting system;
uniform interstate child support laws; computerized state-wide collections to speed up payments;
and tough new penalties, such as drivers' license revocation. The President calls on Congress to
enact the full range of child support enforcement measures in bipartisan welfare reform legislation.
06/17/96
11:30
202 690 5673
HHS-PUBLIC AFFAI
005
NEW HIRE REPORTING PROGRAMS SHOW SUCCESS
Twenty-five states currently have new hire programs in place. New hire programs enable states to
receive employment information on delinquent parents more frequently. These programs have lead to
striking improvements in locating parents who owe support and to dramatic increases in collections.
The following are examples of state programs that are operating across the country:
Florida started its new hire program in
In 1995, Florida's new hire reporting program resulted
.
in over 8,000 matches for outstanding child support cases; the annual amount of support owed under
these cases is $15.2 million. An additional 50,000 matches were made for other child support-related
activities, such as paternity establishment.
Iowa implemented its new hire program in
The state estimates that it has added $5 million to its
-
collections for 1995 as a result of new hire reporting.
Massachusetts began its program in
Since March, 1993, the state has matched new hire
-
information with 137,329 non-paying parents. The state estimates that in 1995, new hire information
yielded $15.4 million in increased child support, saving an estimated $21.6 million from welfare case
closures [Paul -- can welfare savings be larger than collections?].
Missouri began its new hire program in
Missouri estimates that the program collected $12
.
million in 1995. Over 10 percent of the 721,000 new hires reported in 1995 owed child support or
were wanted in paternity establishment cascs.
New York implemented its new hire program in April 1996. Already, the state has processed 404,000
new hire reports (10,000-12,000 a day) with about a 7 percent match rate. New York estimates that
it will collect $14-$15 million annually as a result of the program.
Virginia implemented its program in
As of December 1995, the state had matched almost
-
200,000 child support cases through its new hire program and estimates that total collections from these
cases are in excess of $20 million. Of this, $7.2 million was used for welfare payment savings. In
fact, the state estimates that total savings to the AFDC, Medicaid and Food Stamp programs from the
new hirc program equal over $1.2 million in monthly benefits.
Washington implemented its new hire program on July 1, 1990. New hire reporting is documented
as the state's most cost effective child support enforcement tool. For every dollar the state spends on
its new hire program, it gains approximately $20 in child support collections. Washington collected
$7.8 million in the first 18 months of its program, half of which was used to decrease welfare payments
and save taxpayers money.
06/17/96
11:29
202 690 5673
HHS-PUBLIC AFFAI
003
THE CLINTON RECORD ON CHILD SUPPORT ENFORCEMENT
Record Child Support Collections
In 1995, the federal-state partnership collected a record $11 billion from non-custodial parents, an
increase of $3 billion, or nearly 40 percent, since 1992.
Seizing Tax Refunds
In February 1996, HHS announced the collection of a record $828 million in delinquent child
support for 1994 by intercepting income tax refunds of non-paying parents. Benefiting over one
million families, the amount was nearly 18 percent more than collections from income tax refunds
for 1993.
Prosecuting Non-Payers
Billions of dollars more in support is owed to children whose parents have crossed state lines and
failed to pay. The Justice Department is aggressively investigating and prosecuting these cases
under the Child Support Recovery Act.
Federal Employees
On February 27, 1995, President Clinton signed an executive order to make the federal
government a model employer in the area of child support enforcement. It requires all federal
agencies, including the Armed Forces, to cooperate fully in efforts to establish paternity, and to
ensure that children of federal employees are provided the support to which they are legally
entitled.
Improving Paternity Establishment
The Clinton Administration has made paternity establishment a top priority. Since 1992, paternity
establishment has increased by over 40 percent. Preliminary data for paternity establishment show
an estimated 735,000 in FY 1995, up from 515,857 in FY 1992.
Already, the Clinton Administration has proposed, and Congress has adopted, a requirement that
states establish hospital-based paternity programs as a proactive way to establish paternities early in
a child's life. These programs are just now being implemented, but data from thirty-one states
indicates that more than 200,000 paternities were established through the program in 1995.
Ending Welfare As We Know It
President Clinton has proposed five measures to increase child support collections by an additional
$24 billion and reduce federal welfare costs by $4 billion over the next 10 years: streamlined
paternity establishment; a national new hire reporting system; uniform interstate child support
laws; computerized state-wide collections to speed up payments; and tough new penalties, such as
drivers' license revocation. At the President's urging, Congress and the NGA have included all of
the Administration's provisions for child support enforcement in their welfare reform bills.
Since taking office, the Clinton Administration has granted 63 welfare reform waivers to 40
states more all previous administrations combined. In an average month, these welfare
demonstrations cover more than 10 million people - approximately 75 percent of all AFDC
recipients. Through these waivers, twenty-three states are pursuing innovative child support
enforcement initatives.
06/17/96 11:32
202 690 5673
HHS-PUBLIC AFFAI
1
008
THE CLINTON ADMINISTRATION APPROVES
40TH WELFARE REFORM DEMONSTRATION
Today, the Clinton Administration announces approval of "The New Hampshire Employment
Program," a statewide welfare demonstration project for New Hampshire. New Hampshire is
the 40th state to receive approval for a welfare waiver under the Clinton Administration.
The New Hampshire Employment Program
Requiring Work: Like the President's proposals, New Hampshire is transforming its welfare
system to focus on work, by combining incentives with strong work requirements to move
people from welfare to work. Under the demonstration, welfare recipients are required to be
assessed for employability as a condition of eligibility. The demonstration also requires
participation in work activities, where available, after an initial 26-week period of job search;
limits the amount of time that may be spent in post-secondary educational activities; and allows
unemployed non-custodial parents to participate in education, training, and work programs. The
demonstration offer. also increases sanctions for non-participation or for not accepting a bona fide job
Making Work Pay: The demonstration also includes provisions help make work pay. These
provisions include raising the earned income disregard, raising the resource limit to $2,000,
disregarding the value of one vehicle (for the AFDC and the Food Stamp programs), establishing
a special need allowance for work expenses, disregarding the income of children who are full-
time students, and disregarding all educational income for the AFDC and the Food Stamp
programs. The demonstration also includes supports for families moving from welfare to work,
including transitional case management and expanded eligibility for transitional Medicaid.
Ending Welfare As We Know It
Under President Clinton's leadership, America's welfare system has changed profoundly. Three
out of four AFDC recipients more than 10 million people - are now covered by reforms
approved by the Clinton Administration. With our support, states are reforming welfare by
requiring work, time-limiting assistance, making work pay, improving child support
enforcement. and encouraging parental responsibility. The Clinton Administration has now
approved 63 welfare reform demonstrations in 40 states since taking office.
Due in part to the Clinton Administration's emphasis on welfare reform and its policies to
strengthen the economy, welfare rolls have decreased by 1.3 million -- almost 10 percent - since
President Clinton took office. Participation in the Food Stamp program has dropped by over
one million people -- with a savings of more than $1.3 billion since August 1994. The poverty
rate is down, teen pregnancy rates are down, work and training activities among recipients are
up, and child support collections have reached a record high.
2/5/96
Child Support Enforcement
February 5, 1996
Mike -- If you are interested in highlighting some Cabinet news today:
Benefit 1.1 femilies million
828 '94
HHS announced this morning that the Clinton Administration collected a record of
$828 million in delinquent child support by intercepting the income tax refunds of
up '93 18%
deadbeat parents. This amount, for tax year 1994, was nearly 18 percent more than
was collected from income tax refunds in 1993 and benefitted more than 1 million
families.
(This program of intercepting returns had been going on prior to Clinton Admin. Why
have we been more successful? We have improved the computer system that tracks
names and beefed up our partnership with states in getting the information on parents
who owe, passing that info onto the IRS etc. We have made child support enforcement
a top priority.)
The $828 million is just the money that was collected via intercepted income tax
refunds. Overall federal child support collections have increased under the Clinton
Administration from $7 billion in 1991 to an estimated $11 billion in 1995.
How it Works: Under the tax offset program, state child support enforcement agencies
report names of parents who owe child support payments and the overdue amount to
the federal Administration for Children and Families. These persons are notified in
writing of the amount which will be withheld to cover their child support debt and that
amount is then dedicated from their income tax refund. Parents may have their names
deleted from the list by paying the full amount due, or at state option, by entering
into an agreement to make periodic payments. The delinquency may also be reported
to credit reporting agencies.
Under the President's proposals, supported by Congress, child support collections could
increase by $24 billion over the next 10 years. These measures include: streamlined
paternity establishment, employer reporting of new hires, uniform interstate child
support laws, computerized statewide collections and tough new penalties such as
drivers license revocation. (FYI: These initiatives have bipartisan support and were
part of the final conference welfare reform conference report. Thanks to our strong
stance behind of tougher child support enforcement, we expect them to be included in
any new welfare bill.)
Drafted: KMcKiernan
HHS NEWS
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
FOR IMMEDIATE RELEASE
Contact: Michael Kharfen
Monday, Feb. 5, 1996
(202) 401-9215
RECORD IRS COLLECTIONS FOR DELINQUENT CHILD SUPPORT
The Clinton administration reported today that a record of more
than $828 million in delinquent child support was collected by the
federal government from federal income tax refunds for tax year
1994. The amount was nearly 18 percent higher than the previous
year, and over 1.1 million families benefitted from the program.
!
"Aggressive collection of overdue child support from tax
refunds is just one way the Clinton administration has dramatically
increased the financial support for single parents with children,"
said HHS Secretary Donna E. Shalala. "But, we have more work to do
for the millions of children whose future is at risk because their
parents evade their child support responsibilities."
"If Congress agrees to real welfare reform that, in addition to
ensuring tough child support enforcement, moves people to work,
promotes parental responsibility and protects children, then many
delinquent parents won't be able to escape their obligation to their
children as they do today," added Secretary Shalala.
Under the President's proposals supported by Congress, child
support collections could increase by $24 billion over the next 10
years These measures include streamlined paternity establishment,
employer reporting of new hires, uniform interstate child support
laws, computerized statewide collections, and tough new penalties
such as driver's license revocation.
-)
- More -
- 2 -
The Clinton administration has also taken executive action to
make the federal government a model employer in child support
collections, increase paternity establishment and improve collection
of child support from parents who move from state to state.
Overall, federal child support collections have increased from $7
billion in 1991 to an estimated $11 billion in 1995.
Under the tax offset program, state child support enforcement
agencies report names of parents who owe child support payments and
the overdue amount to the federal Administration for Children and
Families. These persons are notified in writing of the amount which
will be withheld to cover their child support debt and that amount
is then deducted from their income tax refund. Parents may have
their names deleted from the list by paying the full amount due, or
at state option, by entering into an agreement to make periodic
payments. The delinquency may also be reported to credit reporting
agencies.
"Children deserve responsible parents who provide emotional and
financial support," said Mary Jo Bane, assistant secretary for
children and families and director, Office of Child Support
Enforcement. "For those parents who refuse to voluntarily pay their
fair share, the tax offset program is a powerful means to secure the
money needed to prevent a child from having to grow up in poverty."
Parents whose children receive Aid to Families with Dependent
Children and whose unpaid child support totals $150 or more may have
their federal income tax refunds withheld. In 1994, refunds were
withheld for over 846,000 families receiving AFDC. For families who
- More -
- 3 -
do not receive AFDC, an accrued debt of $500 can activate an offset.
Over 316,000 non-AFDC families benefitted from the program this
year.
For tax year 1994, the average collection was $713: $748 for
non-AFDC cases, and $699 for AFDC cases. The cost of processing
these cases was $7.83 per case. Collections for tax year 1994 were
made after tax returns for that year were filed in 1995 and refunds
requested. Collections for 1995 will begin as income tax returns
are filed in 1996.
###
HHS FACT SHEET
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
February 1996
Contact: ACF Press Office
(202) 401-9215
THE CLINTON RECORD ON CHILD SUPPORT
Existing Child Support Programs
The goal of the Child Support Enforcement (CSE) program, established in 1975 under Title IV-D
of the Social Security Act, is to ensure that children are supported financially by both parents.
Designed as a joint federal, state, and local partnership, the multi-layered program involves 54
separate state systems, each with its own unique laws and procedures. Some local child support
offices are run by courts, others by counties, and others by state agencies. At the federal level,
the Department of Health and Human Services provides technical assistance and funding to states
through the Office of Child Support Enforcement and also operates the Federal Parent Locator
System, a computer matching system that uses federal information to locate non-custodial parents.
Today, despite recent improvements in paternity establishment and collections, this child support
system fails many families. In 1991, 14.6 million children lived in a female-headed family, almost
triple the number in 1960, and 56 percent of them lived in poverty. Paternity is not established for
most children born out of wedlock, child support awards are usually low and rarely modified, and
ineffective collection enforcement allows many non-custodial parents -- especially in interstate
cases -- to avoid payment without penalty.
Clinton Administration Increases and Innovations/
Seizing tax refunds. Today the Clinton administration is announcing the collection of a record
$828 million in delinquent child support for 1994 by intercepting income tax refunds of non-paying
parents. Benefiting over one million families, the amount was nearly 18 percent more than
collections from income tax refunds for 1993.
Increasing resources. The President has proposed annual expansions in child support
enforcement, increasing resources by more than 32 percent since taking office. In 1995, the?
federal-state child support enforcement system collected a record $11 billion from non-custodial
parents, an increase of $4 billion over 1991. HHS has also launched an initiative and given
demonstration grants to states to promote improved performance, service quality and public
satisfaction in the child support program.
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Prosecuting non-payers. Billions of dollars more in support is owed to nine children whose
parents have crossed state lines and failed to pay. The Justice Department is aggressively
investigating and prosecuting these cases under the Child Support Recovery Act.
Improving paternity establishment. Already, the Clinton Administration has proposed, and
Congress has adopted, a requirement for states to establish hospital-based paternity programs, as a
proactive way to establish paternities early in a child's life.
Federal employees. On February 27, 1995, President Clinton signed an executive order to make
the federal government a model employer in the area of child support enforcement. It requires all
federal agencies, including the Armed Forces, to cooperate fully in efforts to establish paternity,
and to ensure that children of federal employees are provided the support to which they are legally
entitled.
Changes Under Welfare Reform
The Clinton Administration proposal
According to a report by the Census Bureau, fewer than half of non-custodial parents make any
payments at all for their children's support, and only about a quarter pay the full awarded amount.
As a result, only $11.9 billion in ordered child support was paid in 1991, far short of the $48
billion that could be potentially collected, according to a study released last year.
The President's child support enforcement plan is a comprehensive approach designed to improve
paternity establishment, get child support awards in place, update them periodically, and collect
them when they are owed. HHS estimates that these improvements could increase payments by
some $24 billion over 10 years.
Five provisions would make a particular difference in collections:
Streamlined paternity establishment. Paternity establishment is the crucial first step toward
securing an emotional and financial connection between father and child. The Administration's
proposal expands the scope and effectiveness of current state-based procedures.
New hire reporting. Many states have recently begun requiring employers to report all new hires
to the state, a technique that has proven highly effective in finding parents who owe support.
Having this information in one national directory will allow delinquent parents to be located
anywhere in the country.
License revocation. Threatening to revoke drivers' and occupational licenses has been a very
effective means of collection in the 19 states that are experimenting with different combinations of
license revocation. According to a recent HHS review, the threat of revocation has raised nearly
$35 million in just nine states which have collection statistics. HHS estimates that license
revocation could increase total child support collections by as much as $2.5 billion over 10 years.
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Uniform interstate child support laws. New provisions will be enacted to improve state efforts
to enforce interstate child support cases and to make interstate procedures more uniform
throughout the country.
Computerized state collections. The ability to maintain accurate records that can be centrally
accessed is critical. The Administration would ask states to maintain a central registry and
centralized collection and disbursement capability.
These five improvements would increase child support collections by $24 billion in the next
ten years and reduce federal welfare costs by $4 billion over the same period.
Congressional Action
At the urging of the President, both houses of Congress included all of the Administration's
provisions for child support in their welfare reform bills -- including a plan to ask states to deny
drivers' licenses and professional licenses to deadbeat parents.
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