Office of Management and Budget Click to print this document

March 5, 1998

H.R. 3130 - Child Support Performance and Incentive Act of 1998
Reps. Shaw (R) FL and Levin (D) MI

The Administration supports H.R. 3130, which would spur States' compliance with the current-law requirement for federally certified automated child support enforcement systems by imposing automatic and escalating penalties for those that fail to meet statutory deadlines. In addition, H.R. 3130 would reform the current incentive funding system to encourage States to operate more effective child support enforcement programs.

The Administration, however, is concerned about the provision of the bill that would allow Federal reimbursement for linked county-based child support enforcement systems. Such reimbursement may encourage States to try inappropriately to link local computer systems instead of creating functioning State-wide systems. If this provision is enacted, it will have a small impact on Federal costs. HHS, however, will ensure overall cost neutrality by serving as the final authority to determine whether a county-based system is equally functional to a State-wide system and scrutinizing State cost estimates, including baseline costs.

The Administration understands that an amendment to H.R. 3130 may be offered to make aliens ineligible to receive visas and exclude them from admission to the United States for failure to pay child support. Although the Administration supports the goal of this amendment -- to provide additional incentives for aliens to pay child support -- we want to work with the Congress to address concerns regarding implementation of this proposal.

Pay-As-You-Go Scoring

H.R. 3130 would affect direct spending; therefore, it is subject to the pay-as-you-go requirements of the Omnibus Budget Reconciliation Act of 1990. OMB estimates that H.R. 3130 would result in a net decrease in direct spending of $35 million in FY 1998 and a total of $166 million during FYs 1998-2003.

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