DHHS, Administration for Children and Families

Since 1975, the federal government has paid incentives to state child support enforcement programs to encourage improvement in collections through efficient establishment and enforcement techniques. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) required the Department of Health and Human Services (HHS) to develop a performance-based incentive funding system through which the federal government would award payments to state child support enforcement (CSE) programs. The 1998 Child Support Performance and Incentive Act (CSPIA) created the new structure to reward states that operated effective CSE programs. The federal Office of Child Support Enforcement (OCSE) implemented the new incentive formula over the Fiscal Year (FY) 2000 to 2002 period. Policymakers called for the gradual phase-in so that state officials would have time to perfect their measurement of performance and identify factors that affect the determination of incentives. CSPIA requires HHS to produce interim and final reports that detail the implementation of this new system and offer recommendations for its improvement. This interim Report to Congress describes the development of the new incentive system, components of the system, and initial program results.

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