American Recovery and Reinvestment Act (ARRA) Impact on Child Support Incentives
A Federal match of 66 percent is available for State administrative costs of carrying out child support enforcement program activities under title IV-D of the Social Security Act (Act). ARRA temporarily changes the child support authorization language to allow States to use Federal incentive payments provided to States in accordance with Section 458 of the Act as their State share of expenditures eligible for Federal match. This change is effective October 1, 2008 through September 30, 2010. The requirements of Section 458(f) of the Social Security Act and 45 CFR 305.35 regarding “reinvestment” of incentive funds remain in effect.
This change is in effect for any incentive funds expended during FY 2009 and FY 2010, including incentives earned and not expended in prior years (i.e., prior to October 1, 2008). Incentive payments expended during FY 2008 (October 1, 2007-September 30, 2008) are not eligible for additional Federal funds.
REPORTING REQUIREMENTS/ACTION REQUIRED:
Each State submits Form OCSE-396A, the “Child Support Enforcement Program Expenditure Report” within 30 days of the end of each fiscal quarter. Line 1a, “IV-D Administrative Expenditures Made Using Funds Received as Incentive Payments.” will be revised. All reports and revisions must be submitted in the normal manner electronically through the On Line Data Collection (OLDC) system unless the State elects to submit paper copies to the appropriate Regional Office.
FY 2009, 1st Quarter Expenditures - For any State that has submitted Form OCSE-396A with 1st quarter expenditures reported on Line 1a, OCSE will compute the Federal share as 66 percent of the amount reported in Column A (Total) of that line and issue an award in that amount to the State.
FY 2009, 2nd and 3rd Quarter Estimates - States should review expenditure plans and may submit revised reports, including an estimate of 2nd or 3rd quarter expenditures on Line 1a (Col E). Revised estimates for 2nd quarter will be processed and awarded promptly as they are received. Grant awards for 3rd quarter estimates will be issued no earlier than April 1, 2009.
States should take care to anticipate accountability and transparency requirements and that information on state-reported impact of these expenditures will be available to the public. States are responsible for ensuring that all components of their CSE programs comply with these requirements, including local or county programs and vendors or other entities that perform child support services under contract or cooperative agreement with the State.
Recovery Act Implementation Plan