795 
‘‘(7) FEDERAL MATCHING FUNDS FOR LIMITED 
PASS THROUGH OF CHILD SUPPORT PAYMENTS TO 
FAMILIES RECEIVING TANF.—Notwithstanding para-
graph (1), a State shall not be required to pay to 
the Federal Government the Federal share of an 
amount collected during a month on behalf of a fam-
ily that is a recipient of assistance under the State 
program funded under part A, to the extent that— 
‘‘(A) the State distributes the amount to 
the family; 
‘‘(B) the total of the amounts so distrib-
uted to the family during the month— 
‘‘(i) exceeds the amount (if any) that, 
as of December 31, 2001, was required 
under State law to be distributed to a fam-
ily under paragraph (1)(B); and 
‘‘(ii) does not exceed the greater of— 
‘‘(I) $100; or 
‘‘(II) $50 plus the amount de-
scribed in clause (i); and 
‘‘(C) the amount is disregarded in deter-
mining the amount and type of assistance pro-
vided to the family under the State program 
funded under part A.’’.
796 
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall apply to amounts distributed on or after 
October 1, 2008. 
SEC. 8302. STATE OPTION TO PASS THROUGH ALL CHILD 
SUPPORT PAYMENTS TO FAMILIES THAT 
FORMERLY RECEIVED TANF. 
(a) IN
GENERAL.—Section 457(a) (42 U.S.C. 
657(a)), as amended by section 8301(a) of this Act, is 
amended— 
(1) in paragraph (2)(B), in the matter pre-
ceding clause (i), by inserting ‘‘, except as provided 
in paragraph (8),’’ after ‘‘shall’’; and 
(2) by adding at the end the following: 
‘‘(8) STATE
OPTION
TO
PASS
THROUGH
ALL 
CHILD SUPPORT PAYMENTS TO FAMILIES THAT FOR-
MERLY RECEIVED TANF.—In lieu of applying para-
graph (2) to any family described in paragraph (2), 
a State may distribute to the family any amount col-
lected during a month on behalf of the family.’’. 
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall apply to amounts distributed on or after 
October 1, 2008.
797 
SEC. 8303. MANDATORY REVIEW AND ADJUSTMENT OF 
CHILD SUPPORT ORDERS FOR FAMILIES RE-
CEIVING TANF. 
(a) IN
GENERAL.—Section 466(a)(10)(A)(i) (42 
U.S.C. 666(a)(10)(A)(i)) is amended— 
(1) by striking ‘‘parent, or,’’ and inserting 
‘‘parent or’’; and 
(2) by striking ‘‘upon the request of the State 
agency under the State plan or of either parent,’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on October 1, 2007. 
SEC. 8304. MANDATORY FEE FOR SUCCESSFUL CHILD SUP-
PORT COLLECTION FOR FAMILY THAT HAS 
NEVER RECEIVED TANF. 
(a) IN GENERAL.—Section 454(6)(B) (42 U.S.C. 
654(6)(B)) is amended— 
(1) by inserting ‘‘(i)’’ after ‘‘(B)’’; 
(2) by redesignating clauses (i) and (ii) as sub-
clauses (I) and (II), respectively; 
(3) by adding ‘‘and’’ after the semicolon; and 
(4) by adding after and below the end the fol-
lowing new clause: 
‘‘(ii) in the case of an individual who has 
never received assistance under a State pro-
gram funded under part A and for whom the 
State has collected at least $500 of support, the
798 
State shall impose an annual fee of $25 for 
each case in which services are furnished, which 
shall be retained by the State from support col-
lected on behalf of the individual (but not from 
the 1st $500 so collected), paid by the indi-
vidual applying for the services, recovered from 
the absent parent, or paid by the State out of 
its own funds (the payment of which from State 
funds shall not be considered as an administra-
tive cost of the State for the operation of the 
plan, and such fees shall be considered income 
to the program);’’. 
(b) CONFORMING AMENDMENT.—Section 457(a)(3) 
(42 U.S.C. 657(a)(3)) is amended to read as follows: 
‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST-
ANCE.—In the case of any other family, the State 
shall distribute to the family the portion of the 
amount so collected that remains after withholding 
any fee pursuant to section 454(6)(B)(ii).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2006. 
SEC. 8305. REPORT ON UNDISTRIBUTED CHILD SUPPORT 
PAYMENTS. 
Not later than 6 months after the date of the enact-
ment of this Act, the Secretary of Health and Human
799 
Services shall submit to the Committee on Ways and 
Means of the House of Representatives and the Committee 
on Finance of the Senate a report on the procedures that 
the States use generally to locate custodial parents for 
whom child support has been collected but not yet distrib-
uted. The report shall include an estimate of the total 
amount of undistributed child support and the average 
length of time it takes undistributed child support to be 
distributed. To the extent the Secretary deems appro-
priate, the Secretary shall include in the report rec-
ommendations as to whether additional procedures should 
be established at the State or Federal level to expedite 
the payment of undistributed child support. 
SEC. 8306. DECREASE IN AMOUNT OF CHILD SUPPORT AR-
REARAGE TRIGGERING PASSPORT DENIAL. 
(a) IN GENERAL.—Section 452(k)(1) (42 U.S.C. 
652(k)(1)) is amended by striking ‘‘$5,000’’ and inserting 
‘‘$2,500’’. 
(b) CONFORMING AMENDMENT.—Section 454(31) 
(42 U.S.C. 654(31)) is amended by striking ‘‘$5,000’’ and 
inserting ‘‘$2,500’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2006.
800 
SEC. 8307. USE OF TAX REFUND INTERCEPT PROGRAM TO 
COLLECT PAST-DUE CHILD SUPPORT ON BE-
HALF OF CHILDREN WHO ARE NOT MINORS. 
(a) IN GENERAL.—Section 464 (42 U.S.C. 664) is 
amended— 
(1) in subsection (a)(2)(A), by striking ‘‘(as 
that term is defined for purposes of this paragraph 
under subsection (c))’’; and 
(2) in subsection (c)— 
(A) in paragraph (1)— 
(i) by striking ‘‘(1) Except as pro-
vided in paragraph (2), as used in’’ and in-
serting ‘‘In’’; and 
(ii) by inserting ‘‘(whether or not a 
minor)’’ after ‘‘a child’’ each place it ap-
pears; and 
(B) by striking paragraphs (2) and (3). 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on October 1, 2007. 
SEC. 8308. GARNISHMENT OF COMPENSATION PAID TO VET-
ERANS FOR SERVICE-CONNECTED DISABIL-
ITIES IN ORDER TO ENFORCE CHILD SUP-
PORT OBLIGATIONS. 
(a) IN
GENERAL.—Section 459(h) (42 U.S.C. 
659(h)) is amended—
801 
(1) in paragraph (1)(A)(ii)(V), by striking all 
that follows ‘‘Armed Forces’’ and inserting a semi-
colon; and 
(2) by adding at the end the following: 
‘‘(3) LIMITATIONS
WITH
RESPECT
TO
COM-
PENSATION PAID TO VETERANS FOR SERVICE-CON-
NECTED DISABILITIES.—Notwithstanding any other 
provision of this section: 
‘‘(A) Compensation described in paragraph 
(1)(A)(ii)(V) shall not be subject to withholding 
pursuant to this section— 
‘‘(i) for payment of alimony; or 
‘‘(ii) for payment of child support if 
the individual is fewer than 60 days in ar-
rears in payment of the support. 
‘‘(B) Not more than 50 percent of any 
payment of compensation described in para-
graph (1)(A)(ii)(V) may be withheld pursuant 
to this section.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on October 1, 2007. 
SEC. 8309. MAINTENANCE OF TECHNICAL ASSISTANCE 
FUNDING. 
Section 452(j) (42 U.S.C. 652(j)) is amended by in-
serting ‘‘or the amount appropriated under this paragraph
802 
for fiscal year 2002, whichever is greater,’’ before ‘‘which 
shall be available’’. 
SEC. 8310. MAINTENANCE OF FEDERAL PARENT LOCATOR 
SERVICE FUNDING. 
Section 453(o) (42 U.S.C. 653(o)) is amended— 
(1) in the 1st sentence, by inserting ‘‘or the 
amount appropriated under this paragraph for fiscal 
year 2002, whichever is greater,’’ before ‘‘which 
shall be available’’; and 
(2) in the 2nd sentence, by striking ‘‘for each 
of fiscal years 1997 through 2001’’. 
SEC. 8311. INFORMATION COMPARISONS WITH INSURANCE 
DATA. 
(a) DUTIES OF THE SECRETARY.—Section 452 (42 
U.S.C. 652) is amended by adding at the end the fol-
lowing: 
‘‘(m) COMPARISONS WITH INSURANCE INFORMA-
TION.— 
‘‘(1) IN GENERAL.—The Secretary, through the 
Federal Parent Locator Service, may— 
‘‘(A) compare information concerning indi-
viduals owing past-due support with informa-
tion maintained by insurers (or their agents) 
concerning 
insurance 
claims, 
settlements, 
awards, and payments, and
803 
‘‘(B) furnish information resulting from 
such a comparison to the State agencies respon-
sible for collecting child support from such indi-
viduals. 
‘‘(2) LIABILITY.—An insurer (including any 
agent of an insurer) shall not be liable under any 
Federal or State law to any person for any disclo-
sure provided for under this subsection, or for any 
other action taken in good faith in accordance with 
this subsection.’’. 
(b) STATE REIMBURSEMENT OF FEDERAL COSTS.— 
Section 453(k)(3) (42 U.S.C. 653(k)(3)) is amended by 
inserting ‘‘or section 452(m)’’ after ‘‘this section’’. 
SEC. 8312. TRIBAL ACCESS TO THE FEDERAL PARENT LO-
CATOR SERVICE. 
Section 453(c)(1) (42 U.S.C. 653(c)(1)) is amended 
by inserting ‘‘or of any Indian tribe or tribal organization’’ 
after ‘‘any agent or attorney of any State’’. 
SEC. 8313. REIMBURSEMENT OF SECRETARY’S COSTS OF IN-
FORMATION 
COMPARISONS 
AND 
DISCLO-
SURE FOR ENFORCEMENT OF OBLIGATIONS 
ON HIGHER EDUCATION ACT LOANS AND 
GRANTS. 
Section 453(j)(6)(F) (42 U.S.C. 653(j)(6)(F)) is 
amended by striking ‘‘additional’’.
804 
SEC. 8314. TECHNICAL AMENDMENT RELATING TO COOP-
ERATIVE AGREEMENTS BETWEEN STATES 
AND INDIAN TRIBES. 
Section 454(33) (42 U.S.C. 654(33)) is amended by 
striking ‘‘that receives funding pursuant to section 428 
and’’. 
SEC. 8315. STATE OPTION TO USE STATEWIDE AUTOMATED 
DATA PROCESSING AND INFORMATION RE-
TRIEVAL SYSTEM FOR INTERSTATE CASES. 
Section 
466(a)(14)(A)(iii) 
(42 
U.S.C. 
666(a)(14)(A)(iii)) is amended by inserting ‘‘(but the as-
sisting State may establish a corresponding case based on 
such other State’s request for assistance)’’ before the 
semicolon. 
SEC. 8316. MODIFICATION OF RULE REQUIRING ASSIGN-
MENT OF SUPPORT RIGHTS AS A CONDITION 
OF RECEIVING TANF. 
(a) IN GENERAL.—Section 408(a)(3) (42 U.S.C. 
608(a)(3)) is amended to read as follows: 
‘‘(3) NO ASSISTANCE FOR FAMILIES NOT AS-
SIGNING
CERTAIN
SUPPORT
RIGHTS
TO
THE 
STATE.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), a State to which a grant is made 
under section 403 shall require, as a condition 
of providing assistance to a family under the
805 
State program funded under this part, that a 
member of the family assign to the State any 
rights the family member may have (on behalf 
of the family member or of any other person for 
whom the family member has applied for or is 
receiving such assistance) to— 
‘‘(i) support from any other person 
which accrues during the period that the 
family receives assistance under the pro-
gram; and 
‘‘(ii) at the option of the State, sup-
port from any other person which has ac-
crued before such period. 
‘‘(B) LIMITATION.—The total amount of 
support that may be required to be provided 
with respect to rights assigned to a State by a 
family member pursuant to subparagraph (A) 
shall not exceed the total amount of assistance 
provided by the State to the family.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on October 1, 2008. 
SEC. 8317. STATE OPTION TO DISCONTINUE CERTAIN SUP-
PORT ASSIGNMENTS. 
Section 457(b) (42 U.S.C. 657(b)) is amended by 
striking ‘‘shall’’ and inserting ‘‘may’’.
806 
SEC. 8318. TECHNICAL CORRECTION. 
The second paragraph (7) of section 453(j) (42 
U.S.C. 653(j)) is amended by striking ‘‘(7)’’ and inserting 
‘‘(9)’’. 
SEC. 8319. REDUCTION IN RATE OF REIMBURSEMENT OF 
CHILD 
SUPPORT 
ADMINISTRATIVE 
EX-
PENSES. 
Section 455(a)(2) (42 U.S.C. 655(a)(2)) is amend-
ed— 
(1) in subparagraph (B), by striking ‘‘, and’’ 
and inserting a semicolon; 
(2) in subparagraph (C), by striking ‘‘fiscal 
year 1990 and each fiscal year thereafter.’’ and in-
serting ‘‘fiscal years 1990 through 2006;’’; and 
(3) by adding at the end the following: 
‘‘(D) 62 percent for fiscal year 2007; 
‘‘(E) 58 percent for fiscal year 2008; 
‘‘(F) 54 percent for fiscal year 2009; and 
‘‘(G) 50 percent for fiscal year 2010 and each 
fiscal year thereafter.’’. 
SEC. 8320. INCENTIVE PAYMENTS. 
(a) IN GENERAL.—Section 455(a)(1) (42 U.S.C. 
655(a)(1)) is amended by inserting ‘‘from amounts paid 
to the State under section 458 or’’ before ‘‘to carry out 
an agreement’’.
807 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on October 1, 2007. 
Subtitle D—Child Welfare 
SEC. 8401. EXTENSION OF AUTHORITY TO APPROVE DEM-
ONSTRATION PROJECTS. 
Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is 
amended by striking ‘‘2003’’ and inserting ‘‘2010’’. 
SEC. 8402. ELIMINATION OF LIMITATION ON NUMBER OF 
WAIVERS. 
Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is 
amended by striking ‘‘not more than 10’’. 
SEC. 8403. ELIMINATION OF LIMITATION ON NUMBER OF 
STATES THAT MAY BE GRANTED WAIVERS TO 
CONDUCT DEMONSTRATION PROJECTS ON 
SAME TOPIC. 
Section 1130 (42 U.S.C. 1320a–9) is amended by 
adding at the end the following: 
‘‘(h) NO LIMIT ON NUMBER OF STATES THAT MAY 
BE GRANTED WAIVERS TO CONDUCT SAME OR SIMILAR 
DEMONSTRATION PROJECTS.—The Secretary shall not 
refuse to grant a waiver to a State under this section on 
the grounds that a purpose of the waiver or of the dem-
onstration project for which the waiver is necessary would 
be the same as or similar to a purpose of another waiver
808 
or project that is or may be conducted under this sec-
tion.’’. 
SEC. 8404. ELIMINATION OF LIMITATION ON NUMBER OF 
WAIVERS THAT MAY BE GRANTED TO A SIN-
GLE STATE FOR DEMONSTRATION PROJECTS. 
Section 1130 (42 U.S.C. 1320a–9) is further amend-
ed by adding at the end the following: 
‘‘(i) NO LIMIT ON NUMBER OF WAIVERS GRANTED 
TO, OR DEMONSTRATION PROJECTS THAT MAY BE CON-
DUCTED BY, A SINGLE STATE.—The Secretary shall not 
impose any limit on the number of waivers that may be 
granted to a State, or the number of demonstration 
projects that a State may be authorized to conduct, under 
this section.’’. 
SEC. 8405. STREAMLINED PROCESS FOR CONSIDERATION 
OF AMENDMENTS TO AND EXTENSIONS OF 
DEMONSTRATION 
PROJECTS 
REQUIRING 
WAIVERS. 
Section 1130 (42 U.S.C. 1320a–9) is further amend-
ed by adding at the end the following: 
‘‘(j) STREAMLINED PROCESS FOR CONSIDERATION 
OF AMENDMENTS
AND EXTENSIONS.—The Secretary 
shall develop a streamlined process for consideration of 
amendments and extensions proposed by States to dem-
onstration projects conducted under this section.’’.
809 
SEC. 8406. AVAILABILITY OF REPORTS. 
Section 1130 (42 U.S.C. 1320a–9) is further amend-
ed by adding at the end the following: 
‘‘(k) AVAILABILITY
OF REPORTS.—The Secretary 
shall make available to any State or other interested party 
any report provided to the Secretary under subsection 
(f)(2), and any evaluation or report made by the Secretary 
with respect to a demonstration project conducted under 
this section, with a focus on information that may promote 
best practices and program improvements.’’. 
SEC. 8407. CLARIFICATION OF ELIGIBILITY FOR FOSTER 
CARE MAINTENANCE PAYMENTS AND ADOP-
TION ASSISTANCE. 
(a) FOSTER CARE MAINTENANCE PAYMENTS.—Sec-
tion 472(a) (42 U.S.C. 672(a)) is amended to read as fol-
lows: 
‘‘(a) IN GENERAL.— 
‘‘(1) ELIGIBILITY.—Each State with a plan ap-
proved under this part shall make foster care main-
tenance payments on behalf of each child who has 
been removed from the home of a relative specified 
in section 406(a) (as in effect on July 16, 1996) 
into foster care if— 
‘‘(A) the removal and foster care place-
ment met, and the placement continues to meet, 
the requirements of paragraph (2); and
810 
‘‘(B) the child, while in the home, would 
have met the AFDC eligibility requirement of 
paragraph (3). 
‘‘(2) REMOVAL AND FOSTER CARE PLACEMENT 
REQUIREMENTS.—The removal and foster care 
placement of a child meet the requirements of this 
paragraph if— 
‘‘(A) the removal and foster care place-
ment are in accordance with— 
‘‘(i) a voluntary placement agreement 
entered into by a parent or legal guardian 
of the child who is the relative referred to 
in paragraph (1); or 
‘‘(ii) a judicial determination to the 
effect that continuation in the home from 
which removed would be contrary to the 
welfare of the child and that reasonable ef-
forts of the type described in section 
471(a)(15) for a child have been made; 
‘‘(B) the child’s placement and care are 
the responsibility of— 
‘‘(i) the State agency administering 
the State plan approved under section 471; 
or
811 
‘‘(ii) any other public agency with 
which the State agency administering or 
supervising the administration of the State 
plan has made an agreement which is in 
effect; and 
‘‘(C) the child has been placed in a foster 
family home or child-care institution. 
‘‘(3) AFDC ELIGIBILITY REQUIREMENT.— 
‘‘(A) IN GENERAL.—A child in the home 
referred to in paragraph (1) would have met 
the AFDC eligibility requirement of this para-
graph if the child— 
‘‘(i) would have received aid under the 
State plan approved under section 402 (as 
in effect on July 16, 1996) in the home, in 
or for the month in which the agreement 
was entered into or court proceedings lead-
ing to the determination referred to in 
paragraph (2)(A)(ii) of this subsection 
were initiated; or 
‘‘(ii)(I) would have received the aid in 
the home, in or for the month referred to 
in clause (i), if application had been made 
therefor; or