January 29, 2007

State of Alabama
Press Release: Human Resources, Department of

Collection of Annual Child Support Fee to Begin

Due to Federal Law, the Department of Human Resources will begin collecting an annual $25 fee for child support collections. The fee will be charged on cases where the applicant for child support services has never received welfare and $500 or more in child support has been collected through DHR.

The Federal Law that created this fee is the result of legislation passed by U.S. Congress and signed into law February 8, 2006. This legislation became effective October 1, 2006 and is known as the Deficit Reduction Act (DRA).

  • The intent of the legislation is to reduce federal costs of child support collections and only applies to cases where at least $500 in child support has been collected in the current fiscal year (October 1-September 30), and the applicant for child support services has never received welfare (Family Assistance). States are required to send the fees collected to the federal government.

  • Billing notices will be mailed quarterly, beginning the month of February 2007, after $500 is collected on a case in each fiscal year. Collection notices will continue to be mailed quarterly to applicable cases until computer programming allows for automatic deduction of the fee from child support payments.

    Important Facts to Remember about the Collection Fee and the Deficit Reduction Act

    1. If you received welfare in another state, notify your caseworker, in writing, within 15 days of your billing notice. In your letter, give the name of the State in which you received welfare, and the dates you were on welfare.

    2. If you receive a billing notice in error, please write to your local child support office.

    3. If you have questions as to why this new federal law has been enacted, you may want to contact your U. S. Congressman or Senator.
            


  • For more information, visit http://dhr.alabama.gov
  • For more state-wide press releases, click here