The states collect the child-support money and deposit it in a state fund, but the federal government pays most of the administrative costs and, therefore, dictates the way the system operates through mandates and financial incentives. The federal government pays 66 percent of the states' administrative overhead costs, 80 percent of computer and technology-enhancement costs, and 90 percent of DNA testing for paternity.
In addition, the states share in a nearly $500 million incentive reward pool based on whatever the state collects. The states can get a waiver to spend this bonus money anyway they choose.
However, most of the child support owed by welfare-class fathers is uncollectable. Most of them are either unemployed or have annual incomes less than $10,000.
So, in order to cash in on federal bonus money, build their bureaucracies and brag about successful child-support enforcement, the states began bringing into the government system middle-class fathers with jobs who were never (and probably would never be) on welfare. These non-welfare families have grown to represent 83 percent of child-support cases and 92 percent of the money collected, creating a windfall of federal money flowing to the states.
The federal incentives drive the system. The more divorces, and the higher the child-support guidelines are set and enforced (no matter how unreasonable), the more money state bureaucracies collect from the federal government.
Follow the money. The less time that noncustodial parents (usually fathers) are permitted to be with their children, the more child support they are required pay into the state fund, and the higher the federal bonus to the states for collecting the money.
States have powerful incentives to separate fathers from their children, to give near-total custody to mothers, to maintain the fathers' high-level support obligations even if their income is drastically reduced and to hang onto the father's payments as long as possible before paying them out to the mothers. The General Accounting Office reported that in 2002 that states were holding $657 million in undistributed child support.
Fatherless boys are 63 percent more likely to run away and 37 percent more likely to abuse drugs. Fatherless girls are twice as likely to get pregnant and 53 percent more likely to commit suicide. Fatherless boys and girls are twice as likely to drop out of high school and twice as likely to end up in jail.
We can no longer ignore how taxpayer money is providing incentive for divorce and creating fatherless children. Nor can we ignore the government's complicity in the predictable social costs that result from more than 17 million children growing up without fathers.