Policy Reforms are Needed to Increase Child Support from Poor Fathers

The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

Table of Contents

Executive Summary

I. Introduction

II. How Many Nonresident Fathers are Poor?

III. How Different are Poor Nonresident Fathers from those Who are Not Poor?
     Child Support Payments
     Demographic Characteristics
     Employment Characteristics
     Visitation Patterns

IV. Need for and Use of Income Support Programs and Employment Services
     Poor Nonresident Fathers Face Serious Employment Barriers and Economic Hardships
     Changes in Income Support Programs and Employment Services Since 1996
     Use of Income Support Programs and Employment Services

V. What Policy Changes are Needed?
     Poor Nonresident Fathers Need Realistic Child Support Orders
     Poor Nonresident Fathers Who Do Not Pay Child Support Need Employment Services
     Poor Nonresident Fathers Who Pay Child Support Need Income Support Programs

VI. Lets Make it Possible for Poor Children to Receive Support from Both Parents

Appendix

References

Executive Summary

Welfare reform in 1996 was predicated on the notion that both parents should financially support their children, regardless of where they live or their poverty status. This meant placing greater emphasis on work for custodial parents and strengthening child support enforcement for nonresident parents. Although this approach has been quite successful — it has reduced welfare dependency, increased employment among single mothers, and increased child support collections — it has not worked for the 2.5 million nonresident fathers who are poor and do not pay child support. Most of these fathers are the fathers of children on welfare. In order for child support to be an important source of income for these children, Congress and state governments need to develop a strategy that makes it possible for poor nonresident fathers to pay child support.

Any strategy to increase child support to children on welfare needs to include employment services for poor nonresident fathers. These fathers face many of the same employment barriers and economic hardships as poor custodial mothers. Less than 10 percent have a full- time, year-round job, only half of them are working at any one time. Among those who are not working, half indicate that poor health is the reason for not working. Among those who do work, their median earnings is a mere $5,000 per year.

In 1996, Congress understood that some nonresident parents would need work-oriented services, but its actions did not go far enough. It mandated that states have procedures that allow courts to order noncustodial parents into work activities if they were behind in their child support, but it did not specify how states were expected to pay for this mandate. As a consequence, most states have not implemented it. Congress may want to consider remedying this problem by establishing a block grant to states for the purpose of providing work-oriented programs for delinquent noncustodial parents with children on TANF.

It is also important to recognize that one million nonresident fathers are poor and still pay child support, but many of these fathers' child support orders appear excessive. One quarter of these fathers are paying more than 50 percent of their gross income in child support; among nonpoor fathers, only 2 percent pay this much. A number of factors are contributing to high child support orders for poor fathers relative to their income, but two practices appear to be aggravating the situation and should be examined — setting high default orders and establishing child support orders retroactively.

Finally, poor nonresident fathers are unlikely to receive income support programs, such as Medicaid and Food Stamps, yet over half of these fathers have no health insurance and many worry about a lack of food. In other words, these parents are expected to work and contribute to their children, but the government looks the other way when they meet their responsibility to their children and are poor. By not investing in these parents, we short change their children who are often on welfare and could benefit from their fathers' potential earnings. We suggest extending Medicaid eligibility to nonresident fathers who pay their child support and improve their food stamp coverage in order to send the right message — poor parents who do right by their children will be helped with their medical insurance and nutritional needs.

These three policy improvements directed at poor nonresident fathers — employment services for those who do not pay child support, income supports for those who do, and realistic child support orders — are necessary to ensure that poor children have the support of both parents.

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