Understanding TANF Cost Recovery in the Child Support Program

When families receive both child support and Temporary Assistance for Needy Families (TANF), there are rules that determine how child support payments are shared between the family and the government. This is often called “cost recovery,” which means that states may use some or all of the child support payments to repay TANF assistance that was provided. This report explains how this process works in simple terms, why it matters for family income, and how it can affect the money families actually receive. TANF administrators and policymakers can use this report to better understand how these rules impact families and explore ways to support greater financial stability while still meeting program requirements.