SACRAMENTO – Governor Arnold Schwarzenegger today signed legislation by Assemblymember Dave Jones (D-Sacramento) that implements two mandatory child support provisions of the federal Deficit Reduction Act to ensure California is in compliance with federal law.

Assembly Bill 176 requires local child support agencies to review child support orders for families on welfare every three years. The bill also requires that families applying for welfare after October 1, 2009 be able to keep their child support which accrued, but was unpaid, before they applied for welfare. These provisions are required by federal law, and the state risked a $37 million penalty on its federal Temporary Assistance for Needy Families (TANF) block grant if it had failed to implement them.

"This bill helps keep child support orders accurate and helps families -- not the government -- keep as much of their child support as possible," said Assemblymember Jones. "It also prevents California from losing $37 million to the federal government."

AB 176 originally included an increase in the child support disregard – the amount of child support passed through to children on welfare – from $50 per month to $100 per month for families with one child and $200 for families with two or more children. It is estimated that this increase in the disregard -- also from the Deficit Reduction Act, which requires the federal government to share in the cost of the disregard -- will get an additional $38 million in child support to needy children each year. Although increasing the disregard had broad, bipartisan support in the Assembly (passing 75-2), it was deleted from the bill in the Senate. Jones plans to re-introduce that portion of the bill next year.

“Getting more child support to kids who need it most is the right thing to do," said Assemblymember Jones. "Since noncustodial parents are much more likely to pay child support if it actually benefits their children, increasing the disregard also increases support collections, decreases work in the underground economy, and helps better connect kids with both parents. It even helps the state get more incentive dollars from the federal government. Getting more child support to kids will be a major priority for me next year."