Reducing the Federal Deficit With Child Support Fees

The federal government needs $25 each year from single parents who receive child support to help reduce the federal deficit.
A controversial provision of the federal Deficit Reduction Act of 2005 is now becoming applicable to child support collection. In short, under section 7310 of that Act, the federal government is assessing a $25 per parent annual fee once the state has collected at least $500 in child support for a parent. The fee applies only when the parent for whom child support is being collected is not receiving welfare.

According to the Act, the $25 fee can be collected in one of several ways. It can be:

  • taken out of child support collected, except not from the first $500 collected
  • paid by the person for whom child support is collected
  • recovered from the absent parent
  • paid by the state out of its own funds

What has so outraged single parents in at least two states - Idaho and Virginia - is that their states have decided to require the parent receiving the child support to pay the fee by deducting the fee from that parent's child support account once the account reaches $500. These parents were notified of the new fee by a letter explaining that the fee was necessary to help reduce the federal deficit.

The Idaho parent says, "Just charge the other parent an extra $25 to go towards that." But the Virginia parent has started an online petition to repeal the fee.

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