(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2006. 
SEC. 305. 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 
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. 306. 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. 
SEC. 307. 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.
100
SEC. 308. 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—
(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.’’.
101
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on October 1, 2007. 
SEC. 309. IMPROVING FEDERAL DEBT COLLECTION PRAC-
TICES. 
(a) IN GENERAL.—Section 3716(h)(3) of title 31, 
United States Code, is amended to read as follows: 
‘‘(3) In applying this subsection with respect to any 
debt owed to a State, other than past due support being 
enforced by the State, subsection (c)(3)(A) shall not apply. 
Subsection (c)(3)(A) shall apply with respect to past due 
support being enforced by the State notwithstanding any 
other provision of law, including sections 207 and 
1631(d)(1) of the Social Security Act (42 U.S.C. 407 and 
1383(d)(1)), section 413(b) of Public law 91–173 (30 
U.S.C. 923(b)), and section 14 of the Act of August 29, 
1935 (45 U.S.C. 231m).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on October 1, 2006. 
SEC. 310. 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 
for fiscal year 2002, whichever is greater,’’ before ‘‘which 
shall be available’’.
102
SEC. 311. 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’’. 
TITLE IV—CHILD WELFARE 
SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEM-
ONSTRATION PROJECTS. 
Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is 
amended by striking ‘‘2002’’ and inserting ‘‘2010’’. 
SEC. 402. 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. 403. 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