Collection of Past-Due Support by Administrative Offset

The Debt Collection Improvement Act of 1996 (DCIA), enacted on April 26, 1996, authorizes the Secretary of the Treasury (Secretary) to collect past-due support by the administrative offset of Federal payments. Executive Order 13019 of September 28, 1996 (Executive Order) requires that the Secretary promptly develop and implement procedures necessary for the collection of past-due support debts by administrative offset. In addition, the Executive Order requires each executive agency to review each class of payments certified by such agencies to determine whether any class of payments should be exempt from offset. With respect to any class of payments so identified, agencies must submit a request for exemption from offset to the Secretary within 30 days after the Secretary establishes standards for determining exemptions. The Executive Order further requires that Federal payment agencies and disbursing officials promptly implement any rules, regulations, or procedures issued by the Secretary that are necessary to implement offset for the collection of past-due support. The Financial Management Service (FMS), as the central disbursing agency of the Federal Government, is responsible for implementation of centralized administrative offset for the collection of nontax delinquent debt owed to the Federal Government, past-due support, and other debt owed to States. This regulation implements administrative offset for the collection of past- due support pursuant to the DCIA and the Executive Order. As authorized by the DCIA, FMS intends to promulgate additional rules for centralized administrative offset for the collection of nontax debt owed to Federal and State Governments, other than child support. FMS anticipates that Part 285 will eventually contain all of the provisions relating to centralized administrative offset.