Sec. 501. Child support pass-through program improvements
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Section 457 of the Social Security Act ( 42 U.S.C. 657 ) is amended— in subsection (a), in the matter preceding paragraph (1), by striking and
(e)and inserting , (e), (f), and
(g); and by adding at the end the following: Subject to subsections (d), (e), and (g), beginning October 1, 2023— paragraph
(1)of subsection
(a)shall no longer apply to the distribution of amounts collected on behalf of a TANF family as support by a State pursuant to a plan approved under this part; the State shall pay to a TANF family all of the current support amount collected by the State on behalf of the family and all of any excess amount collected on behalf of the family to the extent necessary to satisfy support arrearages; and for purposes of determining eligibility for, and the amount and type of, assistance from the State under the State program funded under part A, the State shall disregard the current support amount paid to a TANF family and shall disregard the current support amount paid to any family that is an applicant for assistance under the State program funded under part A. Subject to subsections
(e)and (g), beginning October 1, 2025— subsection (a)(2) shall no longer apply to the distribution of amounts collected on behalf of a former TANF family as support by a State pursuant to a plan approved under this part or to support obligations assigned by the family; and the State shall pay to a former TANF family all of the current support amount collected by the State on behalf of the family and all of any excess amount collected on behalf of the family to the extent necessary to satisfy support arrearages (and the State shall treat amounts collected pursuant to an assignment by the family as if the amounts had never been assigned and shall distribute the amounts to the family in accordance with subsection (a)(4)). A State may elect to apply subparagraph
(A)to the distribution of amounts collected on behalf of a former TANF family as support by a State pursuant to a plan approved under this part beginning on the first day of any quarter of fiscal year 2024 or 2025. In this subsection: The term TANF family means a family receiving assistance from the State under the State program funded under part A. The term former TANF family means a family that formerly received assistance from the State under the State program funded under part A. The term excess amount means, with respect to amounts collected by a State as support on behalf of a family, the amount by which such amount collected exceeds the current support amount. . Section 455(a)(3) of such Act ( 42 U.S.C. 655(a)(3) ) is amended to read as follows: The Secretary shall pay to each State, for each quarter of fiscal years 2022 and 2023, 90 percent of so much of the State expenditures described in paragraph (1)(B) for the quarter as the Secretary finds are for a system meeting the requirements specified in sections 454(16) and 454A. In the case of a State which elects the option under subparagraph
(B)of section 457(f)(2) to apply subparagraph
(A)of that section to the distribution of amounts collected on behalf of a former TANF family (as defined in subparagraph
(B)of section 457(f)(3)) as support by a State pursuant to a plan approved under this part beginning on the first day of any quarter of fiscal year 2024 or 2025, the Secretary shall pay to the State for each quarter of fiscal year 2024 and 2025 for which such an election has been made, 90 percent of so much of the State expenditures described in paragraph (1)(B) for the quarter as the Secretary finds are for a system meeting the requirements specified in sections 454(16) and 454A. This paragraph shall not apply to State expenditures described in paragraph (1)(B) for any quarter beginning on or after September 30, 2024 (September 30, 2023, in the case of a State that does not elect the option described in subparagraph (B)). . Subparagraph
(B)of section 457(a)(6) of such Act ( 42 U.S.C. 657(a)(6) ) is amended to read as follows: During each of fiscal years 2021, 2022, and 2023, in the case of a family that receives assistance from the State under the State program funded under part A, a State shall not be required to pay to the Federal Government the Federal share of an amount collected on behalf of a family receiving assistance from the State under the State program funded under part A to the extent that the State— pays the amount to the family; and disregards all of the amount collected that does not exceed the current support amount for purposes of determining the family's eligibility for, and the amount and type of, assistance from the State under the State program funded under part A. . Section 457(a)(6) of such Act ( 42 U.S.C. 657(a)(6) ) is amended in the heading, by inserting after ; transition to elimination of excepted portion . participation Section 457 of such Act ( 42 U.S.C. 657 ) as amended by subsection (a), is further amended by adding at the end the following: Beginning October 1, 2023— subsection
(e)shall no longer apply to the distribution of amounts collected by a State as child support for months in any period on behalf of a child for whom a public agency is making foster care maintenance payments under part E; with respect to the current support amount collected by the State on behalf of the child, the State shall elect to— pay such amount to a foster parent of the child or a kinship caregiver for the child whenever practicable, or to the person responsible for meeting the child's day-to-day needs; or deposit such amount in a savings account to be used for the child's future needs in the event of the child's reunification with family from which the child was removed (including for reunification services for the child and family); to the extent any amount collected exceeds the current support amount and, after the beginning of the period in which a public agency began making foster care maintenance payments under part E on behalf of the child, support arrearages have accrued with respect to the child, the State shall deposit such excess amount into a savings account to be used for the child's future needs; and when the child is returned to the family from which the child was removed, or placed for adoption, with a legal guardian, or, if adoption or legal guardianship is determined not to be safe and appropriate for a child, in some other planned, permanent living arrangement, any amount in such savings account shall— if the child has attained age 18, be transferred to the child; or if the child has not attained age 18, be maintained in such account until the child attains such age, and shall be transferred to the child when the child attains such age. The State agency responsible for administering the program under this part shall be responsible for the distribution under this subsection of amounts collected on behalf of a child for whom a public agency is making foster care maintenance payments under part E. . The Comptroller General of the United States shall study the implementation and impact of the requirements for distribution of amounts collected on behalf of a child for whom foster care maintenance payments are being made under subsection
(g)of section 457 of the Social Security Act ( 42 U.S.C. 657 ) as added by paragraph (1). Not later than January 1, 2027, the Comptroller General shall submit a report to Congress on the results of the study required under paragraph
(1)that includes information on the following: A description of how States have elected to implement the distribution requirements of such subsection, including with respect to the choices States make regarding how much of current support amounts are paid to foster families, saved in the event of a child's reunification with the family from which the child was removed, or saved for the child's future needs. A description of how States distribute or use amounts saved in the event of a child's reunification with the family from which the child was removed, including the extent to which such amounts are used to provide reunification services for the child and family or distributed in full to the family. Recommendations regarding best practices regarding distributions made under such subsection, along with recommendations for such administrative or legislative action as the Comptroller General determines appropriate. Paragraph
(3)of section 408(a) of such Act ( 42 U.S.C. 608(a) ) is amended to read as follows: With respect to each of fiscal years 2021, 2022, and 2023, subject to section 457(b)(3), a State to which a grant is made under section 403 shall require, as a condition of paying assistance to a family under the State program funded under this part, that a member of the family assign to the State any right the family member may have (on behalf of the family member or of any other person for whom the family member has applied for or is receiving such assistance) to support from any other person, not exceeding the total amount of assistance so paid to the family, which accrues during the period that the family receives assistance under the program. Subparagraph
(A)shall not apply to any State or family after September 30, 2023. . Section 457(b) of such Act ( 42 U.S.C. 657(b) ) is amended by adding at the end the following: A State may elect for any or all of fiscal years 2021 through 2023, to— not require the assignment of support obligations under section 408(a)(3)(A) as a condition of paying assistance to a family under the State program funded under part A; and discontinue the assignment of a support obligation described in such section, and treat amounts collected pursuant to the assignment as if the amounts had never been assigned and distribute the amounts to the family. . Section 454 of such Act ( 42 U.S.C. 654 ) is amended— in paragraph (32)(C), by adding and after the semicolon; in paragraph (33), by striking ; and and inserting a period; and by striking paragraph (34). The amendments made by paragraph
(1)take effect on October 1, 2023. Section 454B(c)(1) of such Act ( 42 U.S.C. 654b(c)(1) ) is amended by striking 457(a) and inserting 457 . Section 457 of such Act ( 42 U.S.C. 657 ), as amended by subsections
(a)and (d), is further amended— in subsection (c), in the matter preceding paragraph (1), by striking subsection
(a)and inserting subsections (a), (f), and
(g); and in subsection (e), in the matter preceding paragraph (1), by striking Notwithstanding the preceding provisions of this section, amounts and inserting Subject to subsection (g), amounts .
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Sec. 501
Child support pass-through program improvements
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