Federal policy on taxes and child support shifted between 2025 and 2026. Some of it helps divorced fathers. Some of it adds risk. And a lot of what circulates online about it is simply made up.

Here is what actually changed, with a source for every number.

The One Big Beautiful Bill Act: What Changed on Taxes

President Trump signed the One Big Beautiful Bill Act on July 4, 2025. It became Public Law 119-21.

Two parts of it matter to divorced and separated parents.

The Child Tax Credit is now $2,200

The Child Tax Credit rose to $2,200 per qualifying child under age 17. The law also indexes the credit to inflation, so it will rise in future years.

But the rules on who claims it did not change. This is the part fathers get wrong most often.

By default, the custodial parent claims the credit. The IRS defines that as the parent the child lived with for the greater number of nights during the year.

A noncustodial father can claim the credit only if the custodial parent signs IRS Form 8332 and releases the claim. That release also covers the additional child tax credit and the credit for other dependents.

Paying child support does not give you the right to claim your child. Neither does a 50/50 order by itself. Get the Form 8332 signed, or get the release written into your decree.

Trump Accounts: $1,000 for children born 2025 through 2028

The law created Trump Accounts. Treasury issued proposed rules on March 6, 2026.

A child qualifies for the one-time $1,000 federal contribution if the child:

• Was born in 2025, 2026, 2027, or 2028
• Is a U.S. citizen
• Has a Social Security number
• Has not already had a pilot election filed by someone else

A parent or guardian files Form 4547 to open the account and claim the contribution.

Note that last bullet. Only one person can file the election for a child. If you and your co-parent are not talking, this can become a fight. Federal guidance does not say how these accounts interact with child support math or custody orders. That question is still open.

The Viral Child Support Tax Rumor Is False

In January 2025, a claim spread across social media saying Trump had passed a law letting the parent who pays child support claim the children on taxes instead of the parent who receives it.

PolitiFact checked it on January 21, 2025 and rated it False. No such law exists.

Child support itself remains state law. Congress did not change who claims a child on a federal return. The custodial parent rule and Form 8332 still control.

If someone tells you a federal law wiped out your support obligation, they are wrong, and acting on it will cost you.

Federal Staffing Cuts and What They Actually Covered

On April 15, 2025, Senators Ron Wyden and Bernie Sanders wrote to HHS Secretary Robert F. Kennedy Jr. about layoffs at the Administration for Children and Families (ACF). ACF is the HHS division that houses the federal child support program.

The senators wrote that the administration laid off more than 500 civil servants across ACF programs and closed five regional offices. Their letter named the Office of Family Assistance and the Office of Community Services.

To be precise: that letter did not single out the Office of Child Support Services. We are not going to claim more than the record shows.

What we can say is that the federal office overseeing child support sits inside the division that absorbed those cuts, and states rely on that office for guidance, technology, and matching funds.

The Size of the Program

The federal-state child support program is large. In fiscal year 2024, it distributed $26.7 billion in collections and served 12.2 million children across more than 11.6 million cases, according to the Congressional Research Service.

The federal government reimburses each state 66% of allowable child support program spending. States run the day-to-day work.

DHS Wants Access to the Child Support Database

This is the most serious open issue.

On March 11, 2026, ProPublica reported that the Department of Homeland Security was seeking access to the Federal Parent Locator Service. That database holds employment records, wages, addresses, and Social Security numbers for nearly every working American, plus a registry that flags child abuse and domestic violence cases.

By law, that data is restricted to child support purposes.

Vicki Turetsky, a former federal child support enforcement commissioner, told ProPublica that giving DHS access “would be disastrous for child support enforcement.” Her concern: employers could stop reporting new hires, which is how the system finds paying parents in the first place.

On April 15, 2026, Senators Wyden and Sheldon Whitehouse wrote to HHS calling the plan illegal and demanding answers by April 30, 2026.

Why this matters to fathers directly: new-hire reporting and wage data are what let a state find income and set a support order against real earnings. If that reporting breaks down, orders get built on guesses and imputed income instead of actual pay. That is not a win for paying parents.

Passport Denial for Child Support Arrears

If you owe past-due child support, the federal government can block your passport.

Congress created this in the 1996 welfare law at a $5,000 threshold. The Deficit Reduction Act of 2005 lowered it to $2,500. That is still the trigger.

Getting released is a state question

Our earlier version said you must pay the debt in full. That was too simple and it discouraged people who had options. Here is the accurate picture.

Your state child support agency decides when to ask the federal government to lift the hold. Agencies review cases one at a time, and the rules differ:

• California grants routine release when your statewide arrears balance is zero at the end of the month, with exceptions for life-or-death family emergencies, mistaken identity, and agency error.
• Oregon releases when arrears are paid in full, and also allows release for recordkeeping errors, family emergencies, or when arrears crossed $2,500 only because of a recent back-dated or modified order.
• Washington, D.C. removes you when you make a lump-sum payment bringing arrears to zero and keep making your regular current support payments.
• Georgia can exempt you if you sign a written repayment schedule covering arrears plus current support and post a bond or surety, or if you show the passport is necessary to earn the income that pays the support.

One warning that applies everywhere: paying your balance down below $2,500 does not get you removed automatically. The federal office does not drop you just because you dipped under the line. Your state has to act.

What to do about it

Call your state child support agency before you book travel or pay a passport fee. Ask two questions: what does this state require for release, and how long does processing take. Then ask whether a repayment agreement is on the table.

If your income dropped, file for a modification. Arrears usually pile up because a father lost work and never asked the court to lower the order. Courts rarely reduce arrears after the fact.

A Proposed Rule Trimming Child Support Regulations

On June 18, 2026, ACF proposed removing regulations across nine parts of the child support rules that it called unnecessary and obsolete. The targets include old incentive payment formulas and expired penalty phase-in periods.

ACF says the change will not alter what states must do, because the underlying requirements are in statute. The comment period closed July 20, 2026.

Practical takeaway: this is housekeeping, not reform. Do not expect it to change your order.

What This Means for You

Four things are worth acting on.

• Fix your tax paperwork. If you are supposed to claim your child, get Form 8332 signed. A support order alone will not do it.
• Check the Trump Account if your child was born in 2025 or later. Only one election per child can be filed. Coordinate before it becomes a dispute.
• Deal with arrears before they hit $2,500. Passport denial is easier to avoid than to undo.
• Modify, don’t ignore. Job loss does not pause an order. Only a court does.

And treat viral claims about child support the way you would treat a stranger’s legal advice at a bar. Check the source before you rely on it.

Sources

• Public Law 119-21, One Big Beautiful Bill Act, approved July 4, 2025 — govinfo.gov
• IRS, Child Tax Credit ($2,200 per qualifying child) — irs.gov
• IRS Publication 504, Divorced or Separated Individuals (custodial parent, Form 8332) — irs.gov/publications/p504
• Tax Foundation, FAQ on One Big Beautiful Bill Act tax changes (CTC indexed to inflation) — taxfoundation.org
• IRS, Treasury and IRS issue proposed regulations for Trump Accounts contribution pilot program, IR-2026-31, March 6, 2026 — irs.gov
• PolitiFact, “Viral rumor falsely claims Donald Trump changed tax law to benefit parent paying child support,” January 21, 2025 — politifact.com
• U.S. Senate Committee on Finance, Wyden and Sanders letter to HHS on ACF layoffs, April 15, 2025 — finance.senate.gov
• Congressional Research Service, The Child Support Enforcement (CSE) Program, IF10113 (FY2024 collections and children served) — everycrsreport.com
• Congressional Research Service, Child Support Enforcement: Program Basics, RS22380 — everycrsreport.com
• Eli Hager, ProPublica, “DHS Seeks Access to Massive Employment, Salary and Family Database Legally Restricted to Use in Child Support Cases,” March 11, 2026 — propublica.org
• U.S. Senate Committee on Finance, Wyden and Whitehouse letter on HHS sharing child support data with immigration enforcement, April 15, 2026 — finance.senate.gov
• Congressional Research Service, The Child Support Enforcement Passport Denial Program, IN12660 ($5,000 in 1996, lowered to $2,500 in 2005) — everycrsreport.com
• HHS Administration for Children and Families, Overview of the Passport Denial Program — acf.gov
• National Child Support Enforcement Association, Quick Facts: Passport Denial Program (states release case by case) — ncsea.org
• California Department of Child Support Services, passport denial release criteria — childsupport.ca.gov
• Oregon Administrative Rule 137-055-4540, Passport Denial and Release — law.cornell.edu
• Office of the Attorney General for the District of Columbia, Passport Denial — oag.dc.gov
• Georgia Comp. R. & Regs. R. 290-7-1-.11, Passport Suspension — law.cornell.edu
• Federal Register, “Reducing Bureaucracy and Burden for Child Support Enforcement Programs,” June 18, 2026 — federalregister.gov

Related Reading on Equal Rights for Divorced Fathers

• Child Support Misuse: What Every Divorced Father Should Know About the Money Gap
• Nevada SB 432: What It Actually Changed in Family Court
• She Spent Child Support on a Cruise: How Misused Child Support Hurts Children and Divorced Fathers

About Equal Rights for Divorced Fathers

Equal Rights for Divorced Fathers is a national publication covering fathers’ rights, family court reform, child custody law, and related policy issues, edited by Michael Franklin. Our reporting draws on court records, legal expert commentary, official government sources, and the real-world experiences of divorced fathers navigating the family court system.

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Equal Rights for Divorced Fathers is a publication. We are not a law firm and we do not provide legal advice or representation. Nothing here creates an attorney-client relationship. Consult a licensed attorney about your specific situation.