Section 1115 Waivers to Fund NCP Work Activities - Update

INFORMATION MEMORANDUM

ACF-OCSS-IM-24-05

DATE:  August 13, 2024

TO: State and Tribal IV-D Agencies

SUBJECT: Section 1115 Waivers to Fund NCP Work Activities - Update

Promoting economic mobility by increasing opportunities for employment remains a top priority of the Administration for Children and Families. Section 1115 waivers allow states and tribes to develop and implement employment opportunities for noncustodial parents.

Section 1115 of the Social Security Act gives the Department of Health and Human Services the authority to fund demonstration projects for the child support program. The Office of Child Support Services can waive specific program and funding requirements for state or tribal child support agencies that want to conduct activities that would not otherwise be allowable under Title IV-D, including employment programs for noncustodial parents. Within this authority, the following limitations apply:

• Section 1115 demonstration waivers must promote the objectives of the child support program and be designed to improve the financial well-being of children or operation of the program.
• The project must not result in increased costs to the federal government under Title IV-A of the Act (Temporary Assistance for Needy Families program).
• OCSS can grant waivers to a state or tribe only, not to a county or other government agency, although the services or activities may be piloted in a single or multiple locations.
• State child support agencies must provide their share of funding (34%) for Section 1115 demonstration waivers. They cannot redirect funds away from the child support program, as that would disadvantage the children whose cases are not part of the pilot activities. The waiver authority requires the requesting state agency to invest new funds to pay their share of the cost of the pilot activities. State agencies may use foundation funding or other private sources as their share and must include a waiver of the public source requirement in their request.
• As of October 1, 2024, tribal child support agencies are not required to provide a non-federal share of funding (ACF-OCSS-AT-24-02) (45 CFR 309.130). 

Waiver projects require OCSS approval. Approved projects are eligible for Federal matching funds, not exceeding $2 million in Federal financial participation. To request a waiver for noncustodial parent work activities, a state or tribal agency must specify the program requirements they want to waive or the services they want to provide that are not eligible for funding under Title IV-D or federal regulations. The agency must also provide detailed implementation and evaluation plans for the pilot project.

Approved waiver projects are required to adhere to fully executed Terms and Conditions outlining the specific activities, timeline, budget, reporting requirements, and project evaluation and monitoring procedures. OCSS will provide technical assistance throughout the request and approval process and during the project.

ACF encourages states and tribes to promote and strengthen employment programs for noncustodial parents and reaffirms its commitment to provide work opportunities for parents to support their children.

REFERENCES: Section 1115 of the Social Security Act; 45 CFR Part 304

SUPERSEDES: IM-19-04

INQUIRIES: OCSS Regional Program Managers

Tanguler Gray
Commissioner
Office of Child Support Services