Federal Register #2026-11530

Proposed Rescission of Federal Funding Rule for Employment and Training Services in Child Support Programs

This opportunity concerns a proposed regulatory change by the Office of Child Support Enforcement (OCSE) within the Department of Health and Human Services: - The OCSE proposes to rescind a rule that allowed state and tribal child support agencies to claim Federal Financial Participation (FFP) for providing employment and training services to noncustodial parents under title IV-D of the Social Security Act. - No Original Equipment Manufacturers (OEMs) or commercial vendors are involved, as this is a regulatory action, not a procurement. - The rescission is driven by: - High projected federal costs (up to $98.5 million annually by FY 2034) - Limited evidence that these services improve child support payments - Administrative complexity and overlap with existing workforce programs - The notice seeks public comment on the proposed rescission and on transition measures for agencies that may have relied on the previous rule. - No products or services are being procured; the focus is on regulatory changes affecting funding for employment and training services.

Description

The Office of Child Support Enforcement (OCSE) proposes to rescind the final rule published on December 13, 2024, which allowed child support agencies to use Federal Financial Participation under title IV-D of the Social Security Act to provide optional employment and training services to eligible noncustodial parents. The rescission is proposed due to concerns about the cost-effectiveness, evidence of effectiveness, and administrative complexity of the rule. The final rule projected substantial federal expenditures increasing to $98.5 million per budget year by FY 2034, with only modest improvements in employment outcomes and no consistent evidence of improved child support payments. OCSE seeks comments on the rescission and any transition measures if finalized.

View original listing