Child Support

CalSAWS system changes to support changes in foster care referrals for child support

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The California Department of Social Services and the California Department of Child Support Services have discussed several possible changes to the CalSAWS computer system to help implement changes regarding foster care referrals for child support.

However, despite the fact that no CalSAWS system changes have been made, the only foster care related child support cases that can be referred to the local child support agency are when a parent’s annual income is more than $100,000, or 400 percent of the federal poverty level, whichever is greater, and referral will not be a barrier to reunification.  All foster care related child support collection efforts should stop unless this exception is met.  (ACIN I-07-24, February 16, 2024.)

Foster Care child support arrears

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The California Department of Child Support Services instructs local child support agencies (LCSAs) to review all cases with foster care arrearages.  If the annual income of the parent ordered to pay support is less than $100,000, or 400 percent of the federal poverty level, whichever is greater, the LCSAs must deem the arrears uncollectable and remove them.

If the annual income of the parent ordered to pay support is less than $100,000, or 400 percent of the federal poverty level, and any of the dependent children are still receiving foster care services, the LCSA must ask the welfare department whether continued enforcement would be a barrier to reunification.

If there are no dependent children still receiving foster care services and the annual income of the parent ordered to pay support is less than $100,000, or 400 percent of the federal poverty level, the case will not be reviewed for relief from foster care arrears.

Collections made prior to the collectability determination and removal of arrears will not be refunded.  (CSSP Letter 23-02, October 23, 2023.)

Referrals of families with a child in foster care to child support agencies

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Effective January 1, 2023, counties cannot refer parents whose children have been removed from the home and who are receiving Child Welfare Services to child support agencies.  The only exception to this rule is if a parent’s annual income is more than $100,000, or 400 percent of the federal poverty level, whichever is greater, and referral will not be a barrier to reunification.

In addition, effective January 1, 2023, accrual and collection of foster care related child support payments that do not meet the exception stops.

Counties are encouraged to reassess cases where the family meets the exception if they get information that the parent’s situation no longer meets the exception.

Counties must still do the CW 51 child support referral form for foster care cases and note on the form that the referral will not be sent to the local child support agency unless the parents meet the income exception.  (ACL 23-29, March 20, 2023.)

Child Support pass through in former assistance cases

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Effective May 1, 2024, all child support collections in cases where the family previously received CalWORKs benefts, including collections assigned to arrears owed to the government for recoupment of CalWORKs benefits, will be paid to the family receiving child support.  This change is not retroactive.  Collections in former assistance cases made before May 1, 2024 can still be retained by the government agency to recoup CalWORKs benefits paid to the family.

Effective May 1, 2024, child support collections that are passed through in cases where the family previously received CalWORKs, will count towards reimbursing the government agency for CalWORKs previously received by the family.  Any child support collected that exceeds the amount of CalWORKs received by the family will be passed through to the family.

Any pass through payments that cannot be delivered to the former aid recipient within six months will be retained by the government agency to recoup CalWORKs that was paid.  The former recipient has 12 months after the payment is used for CalWORKs recoupment to make a claim for that payment.  If the former aid recipient is deceased, collected child support will be used to recoup CalWORKs that was previously paid. (CSSI Letter 24-04, May 1, 2024.)

Full child support pass-through for former CalWORKs recipients child only CalWORKs cases

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The California Department of Social Services (CDSS) has issued guidance regarding full pass through of collected child support for CalWORKs recipients child only CalWORKs cases.

Effective January 1, 2024, or when automation is completed, whichever is later, all child support collected must be passed through to former recipients and to CalWORKs recipients where only the children receive benefits (known as K1 and 3F families).  Any pass through payments that cannot be delivered to former CalWORKs recipients for six months will be used to recoup CalWORKs paid to the former recipient.  The former recipient family can make a claim with the Local Child Support Agency for the recouped funds within 12 months of the payment being sent for recoupment.

Also effective January 1, 2024, or when automation is completed, all support payments received in child only CalWORKs cases do not count as income for purposes of CalWORKs eligibility.

Child support payments received by a CalFresh or California Food Assistance household, including child support pass through payments, are counted as unearned income when determining CalFresh eligibility and benefit amount.

Child support payments are considered unearned income of the child when determining eligibility for Supplemental Security Income and Cash Assistance Program for Immigrants.  Any unspent child support payments count as a resource for Supplemental Security Income and Cash Assistance Program for Immigrants.  (ACL 23-93, November 6, 2023, and ACL 23-93E, December 27, 2023.)

Distribution of collected child support in former assistance cases

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In 2005, the federal government gave states the option, in cases where the family previously received Temporary Assistance to Needy Families (CalWORKs in California) to distribute current child support and arrears payments owed to the family to the family first before retaining payments to pay arrears assigned to the state.  In AB 135, chapter 85 (2021) California permanently exercised this option.  California had temporarily exercised this option by Executive Order dated May 1, 2020.

Now, for former assistance cases, all current support and arrears owed to the family will be paid to the family before assigned arrears are retained by the state.  This election also applies to collections made via federal tax intercept.  (CSSP Letter 21-05, November 29, 2021.)