As a family law attorney at GORDON & PERLUT, LLC, with offices in Chicago and Skokie, I often see firsthand the financial struggles faced by low-income families, particularly those relying on Temporary Assistance for Needy Families (TANF). The recent announcement of Illinois’ new child support pass-through payment rule is a significant step toward alleviating some of these burdens. Beginning in July 2024, all child support collected on behalf of low-income families who are current or former TANF recipients will be passed through directly to the families, ensuring they receive the full support intended for their children. This policy change is a monumental shift in how child support is managed and distributed in Illinois, aiming to provide fairer financial assistance to those who need it most.
The new rule mandates the full pass-through of child support payments to TANF recipients starting from July 1, 2024. This means that any child support collected by the state on behalf of these families will go directly to them rather than being partially retained by the state. This change is also retroactive, covering child support collected from January 1, 2023, to July 1, 2024. By implementing this rule, Illinois becomes the first state to unconditionally ensure that all families receive 100% of the child support payments made.
Previously, Illinois retained a portion of child support payments collected on behalf of TANF recipients to cover administrative costs. This policy, while legally permissible, often exacerbated the financial difficulties faced by low-income families. The change aligns with the mission of the Department of Healthcare and Family Services (HFS) to support families in fulfilling their child support obligations and improving their financial well-being. The shift to a full pass-through system aims to provide immediate and significant financial relief to those who need it most.
The financial benefits of this policy change are significant. By receiving the full amount of child support payments, low-income families will have more resources to meet their children’s needs. This direct financial relief will help alleviate the burden of day-to-day expenses, allowing families to manage their finances better and improve their overall well-being. The full receipt of child support payments means that every dollar intended for the care and support of children will reach them, providing much-needed assistance for food, clothing, housing, and other essentials. This policy change is not just about financial relief, it’s about empowerment and hope for a better future.
HFS Director Elizabeth Whitehorn highlighted the fairness and financial relief this policy brings, stating that the previous system worsened the financial struggles of low-income families. IDHS Secretary Designate Dulce M. Quintero emphasized that children will benefit directly from this change, marking a significant advancement for families reliant on TANF. Illinois House Assistant Majority Leader Marcus C. Evans, Jr. expressed his support, noting the crucial role of every dollar in helping struggling families care for their children and achieve success. This policy change is not just a result of legislative action, it’s a testament to the power of community and collaboration. Advocacy groups like the Chicago Coalition for the Homeless have also welcomed this change, seeing it as a vital improvement for the communities they represent.
The new rule was authorized by Public Act 102-1115, signed into law by Governor JB Pritzker in January 2023. Federal regulations require TANF recipients to assign their rights to child support to the state, which then has the option to pass through a portion or all of the collected support. Until now, Illinois retained a portion of these payments to cover operational costs, as allowed by law. The new policy changes this, ensuring all collected child support is passed directly to the families.
To accommodate this policy shift, the state’s budget has been adjusted. This adjustment involves reallocating funds from other areas of the budget to cover the operational costs previously funded by retained child support payments. The Illinois Office of the Comptroller has begun issuing paper checks to families for the amounts owed between January 2023 and July 2024. Moving forward, regular pass-through payments will be issued via the LINK card. This transition ensures that families receive the financial support they are entitled to without interruption.
Federal regulations allow states to pass through up to $100 for families with one child and $200 for families with two or more children without financial penalty, provided these amounts are paid in child support during the month. Illinois’ new policy goes beyond this, ensuring any child support collected above these amounts is paid to the family the following month. This compliance with federal guidelines ensures that Illinois families receive maximum financial support without jeopardizing federal assistance.
One important aspect of this change is that child support payments collected and issued to the parent receiving support will not impact a parent’s eligibility for TANF benefits. This assurance means that families can receive the full amount of child support without risking their TANF benefits. Additionally, this policy change does not affect child support account balances; it only changes the distribution method of the funds. Families will continue to receive all current and past-due child support in full after they stop receiving TANF, ensuring continued financial stability.
This policy change is expected to have far-reaching socioeconomic effects. By providing increased financial resources directly to families, it can significantly improve child and family welfare. Access to more financial resources can lead to better living conditions, improved access to education and healthcare, and overall family stability. In the long term, this support can help families become more independent from public assistance, promoting economic self-sufficiency and reducing poverty. It can also lead to a reduction in the cycle of poverty, as children from these families may have better opportunities for education and career development, breaking the generational poverty cycle.
Illinois is setting a precedent as the first state to implement an unconditional full pass-through of child support. This innovative approach may influence other states to adopt similar policies, potentially leading to nationwide changes in how child support is managed and distributed. By demonstrating the benefits of this policy, Illinois can pave the way for broader adoption and greater support for low-income families across the country.
The new child support pass-through payment rule is a significant advancement for low-income families in Illinois. By ensuring that all collected child support is passed directly to the families, this policy provides essential financial relief and supports the well-being of children and their caregivers. The expected positive impact on Illinois families is substantial, with the potential for long-term benefits and a model for other states to follow. As we continue to support and advocate for low-income families, it is crucial to monitor the outcomes of this policy and explore further improvements to enhance the financial stability and independence of those in need.
If you have questions about how this child support pass-through payment policy change might affect your family or need assistance with child support issues, GORDON & PERLUT, LLC is here to help. We offer a free telephone consultation to discuss your case and provide the support you need. Contact our Illinois family law attorneys at either our Chicago office at 312-360-0250 or our Skokie office at 847-329-0101 to arrange a consultation. Let us help you secure the financial support and justice you deserve.