Section 1115 Waivers - Update

INFORMATION MEMORANDUM

ACF-OCSS-IM-24-03

DATE: May 1, 2024

TO: State and Tribal IV-D Agencies

SUBJECT: Section 1115 Waivers — Update

Section 1115 of the Social Security Act provides the Department of Health and Human Services with the waiver authority to fund experimental, pilot, or demonstration projects for the child support program.

• OCSS has the authority to waive specific program requirements or funding restrictions for child support agencies to conduct time-limited activities designed and closely measured to improve the financial well-being of children.
• With an approved waiver, child support agencies can use federal funds to conduct pilot or experimental activities or deliver services that would not otherwise be allowable, to promote the objectives of the child support program and improve the outcomes for children.

Some examples of activities that may be approved for waiver funding include employment programs for noncustodial parents, fatherhood or responsible parenting programs, and establishing parenting time orders with financial support orders.

Funding

If a tribe requests a Section 1115 waiver, effective October 1, 2024, there is no cost sharing requirement due to the elimination of the tribal non-federal share (ACF-OCSS-AT-24-02) (45 CFR 309.130). The federal funding share is 100% to a maximum of $2 million for the duration of the project.

If a state requests a Section 1115 waiver, their cost sharing percentage is 34% as with regular child support program operations. The federal funding share is 66% to a maximum of $2 million for the duration of the project. State child support agencies can use private sources as the agency’s share in claiming the federal share of funding. The following are not allowable sources of the state share:

• Incentive funding
• TANF funding
• State Maintenance of Effort (MOE) funding

Public funds from other state agencies can be used as the agency share if the funds do not originally have a federal source. A waiver project can also be a public-private partnership if a foundation or other private funder contributes some or all of the agency’s share. By requesting a waiver from the requirement to fund the agency share with public dollars, the private investment becomes eligible for federal financial participation.

Waiver projects cannot disadvantage children served by the child support agency. State agencies requesting a waiver must be able to invest new funds to pay their share of the cost of the pilot activities. State agencies cannot redirect funds that would otherwise be spent on child support operations, as that would disadvantage children whose cases are not part of the pilot activities.

Application

Child support agencies requesting section 1115 waiver authority are encouraged to seek technical assistance from OCSS before applying. At a minimum, the application must address:

• Goals and objectives
• Requirements or funding restrictions to be waived
• Geographic location
• Caseload segment or population to be served
• Project description
• Communication plan
• Implementation plan
• Evaluation plan
• Staffing and project management
• Budget

OCSS will notify agencies if the request is approved or requires revisions. OCSS can grant waivers only to the state or tribe and not to county or other government agencies, although services or activities may be piloted in a localized or specific area. Project duration is typically two to five years, depending on service or activity costs and number of parents served. An approved waiver project requires fully executed terms and conditions outlining the specific activities, implementation, timeline, budget, reporting requirements, monitoring procedures, and project evaluation.

Evaluation

Section 1115 requires the child support agency to evaluate the effects of the waiver project and submit the results for comparison and consideration. The detailed evaluation plan must:

• Outline the data to be gathered and the method of analysis for measuring key child support outcomes such as increased payments, reduced arrears, improved paternity establishment, other performance improvements, and cost effectiveness.
• Identify who will conduct the evaluation and how they will be committed to the project (MOU, contract, etc.).
• Identify the outcomes to be measured, the data to be collected and sources, and the methodologies to analyze the data.

Technical Assistance

OCSS provides extensive technical assistance throughout the waiver request and approval process, and throughout the project. OCSS also provides resources for assessment, design, development, and evaluation of pilot programs. We encourage child support agencies to use all technical assistance available for maximum project effectiveness and impact. Additionally, child support agencies may use program models and materials developed during waiver projects to expand technical assistance resources and to replicate best practices among other child support agencies interested in implementing similar projects.

REFERENCES: Section 1115 of the Social Security Act; 45 CFR Part 304; 45 CFR 309.130

SUPERSEDES: IM-20-03

INQUIRIES: OCSS Regional Program Managers

Tanguler Gray
Commissioner
Office of Child Support Services