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(ii) by inserting ‘‘(whether or not a 
minor)’’ after ‘‘a child’’ each place it ap-
pears; and 
(B) by striking paragraphs (2) and (3). 
SEC. 203. GARNISHMENT OF COMPENSATION PAID TO VET-
ERANS FOR SERVICE-CONNECTED DISABIL-
ITIES IN ORDER TO ENFORCE CHILD SUP-
PORT OBLIGATIONS. 
Section 459(h) of the Social Security Act (42 U.S.C. 
659(h)) is amended— 
(1) in paragraph (1)(A)(ii)— 
(A) in subclause (IV), by striking ‘‘or’’ 
after the semicolon; 
(B) in subclause (V), by inserting ‘‘or’’ 
after the semicolon; and 
(C) by adding at the end the following: 
‘‘(VI) subject to paragraph (3), 
other than periodic benefits or pay-
ments described in subclause (V), by 
the Secretary of Veterans Affairs as 
compensation for a service-connected 
disability paid by the Secretary to a 
former 
member 
of 
the 
Armed 
Forces;’’; and 
(2) by adding at the end the following:
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‘‘(3) LIMITATIONS
WITH
RESPECT
TO
COM-
PENSATION PAID TO VETERANS FOR SERVICE-CON-
NECTED DISABILITIES.— 
‘‘(A) ALIMONY
AND
CHILD
SUPPORT.— 
Subject to subparagraph (B), compensation de-
scribed in paragraph (1)(A)(ii)(VI) shall not be 
subject to withholding pursuant to this sec-
tion— 
‘‘(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) LIMITATION.—Not more than 50 per-
cent of any payment of compensation described 
in subparagraph (A) may be withheld pursuant 
to this section.’’. 
SEC. 204. IMPROVED INTERSTATE ENFORCEMENT. 
(a) IN GENERAL.—Section 466(f) (42 U.S.C. 666(f)) 
is amended— 
(1) by striking ‘‘January 1, 1998’’ and insert-
ing ‘‘January 1, 2005’’; 
(2) by striking ‘‘and as in effect on August 22, 
1996,’’; and 
(3) by striking ‘‘adopted as of such date’’ and 
inserting ‘‘adopted as of August, 2001’’.
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(b) FULL FAITH AND CREDIT FOR CHILD SUPPORT 
ORDERS.—Section 1738B of title 28, United States Code, 
is amended— 
(1) by striking subsection (d) and inserting the 
following: 
‘‘(d) CONTINUING EXCLUSIVE JURISDICTION.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), a 
court of a State that has made a child support order 
consistent with this section has continuing, exclusive 
jurisdiction to modify its order if the order is the 
controlling order and— 
‘‘(A) the State is the child’s State or the 
residence of any individual contestant; or 
‘‘(B) if the State is not the residence of 
the child or an individual contestant, the con-
testants consent in a record or in open court 
that the court may continue to exercise jurisdic-
tion to modify its order. 
‘‘(2) REQUIREMENT.—A court may not exercise 
its continuing, exclusive jurisdiction to modify the 
order if the court of another State, acting in accord-
ance with subsections (e) and (f), has made a modi-
fication of the order.’’; 
(2) in subsection (e)(2)—
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(A) in subparagraph (A), by striking ‘‘be-
cause’’ and all that follows through the semi- 
colon and inserting ‘‘pursuant to paragraph (1) 
or (2) of subsection (d);’’ and 
(B) in subparagraph (B), by inserting 
‘‘with jurisdiction over at least 1 of the indi-
vidual contestants or that is located in the 
child’s State’’ after ‘‘another State’’; 
(3) in subsection (f)— 
(A) in the subsection heading, by striking 
‘‘RECOGNITION OF CHILD SUPPORT ORDERS’’ 
and inserting ‘‘DETERMINATION OF CONTROL-
LING CHILD SUPPORT ORDER’’; 
(B) in the matter preceding paragraph (1), 
by striking ‘‘shall apply’’ and all that follows 
through the colon and inserting ‘‘having per-
sonal jurisdiction over both individual contest-
ants shall apply the following rules and by 
order shall determine which order controls:’’; 
(C) in paragraph (1), by striking ‘‘must 
be’’ and inserting ‘‘controls and must be so’’; 
(D) in paragraph (2), by striking ‘‘must be 
recognized’’ and inserting ‘‘controls’’;