To require the same distribution of child support arrearages collected by Federal tax intercept as collected directly by the States, and for other purposes.

Amends part D (Child Support and Establishment of Paternity) of title IV of the Social Security Act to revise distribution guidelines for child support arrearages collected by Federal tax intercept on behalf of a family. Requires the same distribution of arrearages collected by Federal tax intercept as collected directly by the States (namely, first to the family, and only then to the State to reimburse prior welfare expenditures).

Repeals the State and Federal priority for retaining assigned child support arrearages collected from Federal tax refund offsets.

Mandates that the State agency distribute such arrearages in accordance with the priorities revised under this Act.