Relating To Child Support.
If enacted, the bill would amend existing statutes, particularly sections of the Hawaii Revised Statutes that govern child support and public assistance. It would require the Department of Human Services to disregard amounts of passed-through child support when calculating the income of TANF applicants and recipients. The intended result is to enhance financial support by allowing families to retain up to $200 in child support payments, which could significantly improve the financial well-being of low-income families. This adjustment could, however, result in a reduction of state revenue but is projected to yield significant net benefits for families in need.
House Bill 1181 proposes significant changes to Hawaii's child support system, particularly concerning custodial parents receiving Temporary Assistance for Needy Families (TANF). Currently, a substantial portion of child support payments directed towards custodial parents is retained by the state and used to reimburse the federal government. This bill aims to implement a pass-through policy for child support payments, allowing more funds to reach the families directly. The proposal reflects an effort to enhance financial support for needy families while complying with federal guidelines that encourage states to devise pass-through laws.
The discussions surrounding HB 1181 highlight concerns about balancing state revenue needs with the increased financial support for families. Supporters argue that helping custodial parents directly aligns with federal recommendations to support low-income families. Critics, however, may raise issues regarding budget constraints and the long-term financial implications for the state. The bill also stipulates increased penalties for employers who fail to comply with income withholding orders for child support, raising questions about enforcement and the additional burden on employers.