ALEXANDRIA, VA – A new study has shown that upcoming federal cuts to state child support enforcement programs will have a severe impact on American children and their working parents. Conducted by The Lewin Group, a top national health care and human services consulting firm, the report finds that the upcoming cuts to child support enforcement programs will result in a 10% drop in the number of orders to collect support. The report also predicts that collections on current support will decrease by $680 million per year nationwide.

Enacted as part of the Deficit Reduction Act of 2005, the cuts reduce federal performance-based incentive payments to states for their work to enforce child support orders, despite the overwhelming success of the program. In 2005, the federal government and states together spent $5.4 billion on the child support program. That same year, $23 billion was collected; thus, yielding more than $4.50 collected for each $1 spent.

“If states fail to fully replace the lost federal matching funds, the resulting reductions in CSE program expenditures would immediately affect performance on order establishment and current collections. Assuming states do not make up any of the lost federal match, we estimate the percent of cases with orders would fall by 10 percent nationwide. The percent of collections on current support due would decrease an estimated 4 percent nationally,” the report concludes.

“Approximately 25 percent of the nation’s children receive child support services. This highly successful, federal-state partnership has been invaluable in ensuring support is available to meet the needs of American children. The program has served this need through locating parents, verifying their support obligations, and enforcing those obligations,” said Bruce Lesley, President of First Focus. “The loss of $680 million is not a drop in the bucket. This program has enjoyed enormous success, collecting more than $4.50 for each dollar invested. Congress must take action to restore these cuts before they go into effect on October first.”

Other findings included:

  • High performing states face the greatest risk of funding shortfalls and corresponding performance declines.
  • Program expenditures are linked to performance after controlling for state-specific socio-economic factors.
  • States will cut labor-intensive services and initiatives, reduce staff, and delay enhancements in automation and the use of technology unless funding is restored.
  • Funding cuts will have interstate ramifications.
  • Funding cuts are expected to affect all customers and related programs.