Gov. Evers Leads Delegation of 26 Governors Urging Congress to Pass Bipartisan “Strengthening State and Tribal Child Support Enforcement Act”
Failure to pass legislation could result in payment disruptions for over 12 million kids nationwide
Gov. Tony Evers today led a delegation of 26 bipartisan governors in sending a letter to congressional leadership urging them to pass the bipartisan Strengthening State and Tribal Child Support Enforcement Act (H.R. 7906), which will improve the ability of state, Tribal, and local child support agencies to serve families and their kids.
“Wisconsin’s child support program is critical to ensuring every kid has the support they need and deserve to thrive,” said Gov. Evers. “But current federal law, which prohibits contractors and Tribal child support agencies from accessing federal tax information, is putting millions of families at risk. Many of these impacted families already live below the federal poverty line, so it’s critical that Congress passes this legislative fix, allowing these kids and families to get the support they need.”
In more than 40 states, contractors are essential in assisting state and Tribal child support agencies in establishing and enforcing child support obligations. Up until last year, the Internal Revenue Service (IRS) and the federal Office of Child Support Services allowed contractor access to federal tax information (FTI) beyond what was in the Internal Revenue Code, as long as contactors adhered to stringent measures to ensure that confidential information remained protected. The IRS has since reversed its interpretation, putting states and Tribes across the nation in a dire position.
In Wisconsin, contractors access FTI to support the Federal Tax Offset Refund program, which allows states to intercept tax refunds of parents who are behind on their child support payments. In federal fiscal year 2023, more than $1.6 billion in child support obligations was collected via federal tax offset, with $32.5 million of it going to Wisconsin families.
Without a legislative fix, states will no longer be able to allow contractors access to federal tax information as of Oct. 1, 2024. Reaching this deadline could cost Wisconsin millions of dollars and suspend child support payments to thousands of families. The Strengthening State and Tribal Child Support Enforcement Act provides the needed statutory authority for states to use contractors to administer their child support enforcement programs without being in violation of IRS rules. The act is also expanding direct access to FTI to Tribes and Tribal child support agencies, ensuring they can provide much-needed resources for the families they serve, and the legislation is supported by the four national associations representing state and Tribal child support agencies.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
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