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Sunday, December 22, 2024

Illinois updates rule on passing through collected child support payments

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Elizabeth M. Whitehorn Director at Illinois Department of Healthcare and Family Services | Official website

Elizabeth M. Whitehorn Director at Illinois Department of Healthcare and Family Services | Official website

Beginning in July, all child support collected on behalf of Illinois' low-income families with children who are current or former Temporary Assistance for Needy Families (TANF) recipients will be passed through to the family for the care and support of the child or children. The Department of Healthcare and Family Services (HFS) announced that this support will no longer be retained by the state.

All families currently receiving or who formerly received TANF will benefit from this change. As of July 1, any amount of child support collected and retained by HFS' Division of Child Support Services between January 1, 2023, and July 1, 2024, will be passed through to the family. With this change, Illinois becomes the first state in the nation to unconditionally ensure all families receive 100% of the child support paid. Other states pass through all child support paid but subject it to appropriation.

"This change will bring about fairness for more Illinois families that receive child support services, and it strongly aligns with the Department's mission to help families fulfill their child support obligations and improve their financial wellbeing," said HFS Director Elizabeth Whitehorn. "The Department's previous policy exacerbated financial difficulties for those who were already experiencing heavy financial burdens. This will alleviate a financial burden for the lowest-income families being served."

"This change means children will benefit from the full amount of child support paid by non-custodial parents. This is a significant advancement for our families who rely on TANF for support. Once again, this administration is developing visionary strategies to uplift our families and relieve them from obstacles as they chart their journey to independence and success," said Dulce M. Quintero, IDHS Secretary Designate.

"Single mothers and struggling families of Illinois receiving assistance need every dollar to survive, properly care for their children and get on course to succeed," said Illinois House Assistant Majority Leader Marcus C. Evans Jr., D-Chicago. "I am proud to join Gov. Pritzker as he takes action making this child support pass-through change law. Struggling families of Illinois: we support you and we want you to thrive."

"Chicago Coalition for the Homeless and our Grassroots Leaders are extremely excited to see this change in policy," said Niya Kelly, Director of State Legislative Policy, Equity and Transformation for the Chicago Coalition for the Homeless. "Identifying this as an issue that they struggled with provided them with the opportunity to see improvements in the system not only for themselves but for those they share community with and around the state. Thank you to everyone involved in this monumental change."

Gov. JB Pritzker signed Public Act 102-1115 into law in January 2023 authorizing this change. Pursuant to federal regulations, in order to receive TANF, a family must assign their rights to child support to the state. The state has an option to pass through a portion or all collections.

Until now, the state withheld a portion of child support payments to cover operational costs as allowed by law. Now all child support will be passed through directly to families, with an increased appropriation included in HFS' budget covering any gaps.

Paper checks issued by the Illinois Office of Comptroller are being sent out covering amounts owed during January 2023-July 2024 period; first full pass-through payments were sent on July 10th with additional payments forthcoming via LINK card.

Federal regulations allow states up $100 monthly pass-through per one-child family ($200 per two+children family) without penalty if amounts are paid within month; excess amounts collected above these thresholds distributed following month.

Child-support payments issued won't affect parent's eligibility for TANF benefits nor impact account balances—only distribution method changes; post-TANF period continues full receipt current/past-due supports.

For questions or assistance call: 800-447-4278; email: hfs.dcssaskaquestion@illinois.gov; visit: https://hfs.Illinois.gov/childsupport.html.

For more information about TANF visit: https://www.dhs.state.il.us/page.aspx?item=30358.

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