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Legal Corner – SB1055

February 3, 2025 by AOUON Contributor Leave a Comment

by Debra Slone, LSPC Staff Attorney

I am glad to report a few welcome changes to child support law and practice that go into effect this year: driver’s license suspension halted for low-income obligors who earn under 70% of the local median income; full passthrough of child support for former CalFresh recipients; and, a federal rule change allowing certain federal funds to support noncustodial parents’ employment training and assistance.

SB1055, Family Code Section 17520.5: Ban on DMV license suspension for low-income obligors

Beginning 2025, the California DMV is now prohibited from suspending driver’s licenses of individuals who owe child support debts if their annual household income “is at or below 70 percent of the median income for the county” they allegedly reside in. This is a narrow but important change, and includes commercial driver’s licenses until January 2027. After that date, the exemption will be limited to personal driver’s licenses only.

As the median income varies widely amongst counties, ranging from $70,000 to over $150,000, this law intends to give low-income parents some relief. This should diminish the vicious cycle that falling behind on child support precipitates if one’s driver’s license is suspended, causing a disastrous cascade of transportation barriers, lost employment, and the risks inherent in driving on suspended license charges, including probation or parole violations and re-incarceration.

The Department of Child Support Services (DCSS) grants full pass-through of child support

The DCSS 2024-2025 budget includes a major change in child support policy that allows families to receive the entirety of the child support paid, rather than redirecting payments to the state and federal government as reimbursement for the cost of public benefits. 

Previously, whenever a child support payment was made after a family had transitioned off CalWORKs aid, the payment was applied to an account that detailed how the funds were allocated. If the payment was designated to cover a period during which the family received CalWORKs benefits, the amount was reduced accordingly. Under the new system, 100% of child support payments are passed through directly to the family while simultaneously being credited toward reimbursing the government for aid previously provided. 

Title IV-D of the Social Security Act: Federal Financial Participation Funds (FFP) 

A new Federal Rule, published on December 13, 2024 and effective as of January 13, 2025, allows state and tribal child support agencies to use available FFP funds to provide employment and training services for eligible noncustodial parents.

Collectively, and on their own, each of these legal changes will be critical. These adjustments remove punitive and harmful penalties for families already struggling and provide cushion to parents, as well as offer access to supportive services that could help interrupt cycles of poverty.

None of these measures go far enough, but they signify an important milestone in advancing child support reform.

Filed Under: Legal Corner, Recent

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