Budget proposal to halt child care debt proposals advances in legislature

A California budget proposal to stop collecting child support debt from parents who receive financial assistance advanced this week, CalMatters reports. But advocates for parents in debt say the proposed solution must go further.

The Legislature’s budget proposal would reduce or expunge debt owed to the government for parents who rely on income from either the Supplemental Security Income or State Supplementary Payment, the Cash Assistance Program for Immigrants, a combination of SSI/SSP and Social Security Disability Insurance benefits, or Veterans Administration disability benefits.

California collects child support payments from parents who sign up for government aid and applies penalties like interest or in some cases will suspend driver’s licenses when noncustodial parents fall behind on payments. That adds up to millions of dollars in interest on past-due child support payments in California, CalMatters reports, often locking noncustodial parents into debt.

Each year California collects approximately $2.5 billion from parents through the Department of Child Support Services. The majority of those funds get redirected to custodial parents, but the state also keeps a share. In 2019, it kept about $370 million for the general fund.

It’s unclear how many parents that receive cash assistance also owe child support debt.