Child Support Distribution Act of 2001

Child Support Distribution Act of 2001 - Amends title IV part D (Child Support and Establishment of Paternity) of the Social Security Act (SSA) to revise requirements for: (1) denial of assistance to families that do not assign certain support rights to the State; and (2) the distribution of child support collected by States on behalf of children receiving certain welfare benefits.

Directs the Secretary of Health and Human Services to develop recommendations regarding the participation of public non-IV-D child support enforcement agencies in establishing and enforcing child support obligations.

Prescribes requirements for ten demonstration projects involving establishment and enforcement of child support obligations by such public non-IV-D agencies.

Reduces from $5,000 to $2,500 the amount of child support arrearage which shall trigger denial of a passport.

Revises requirements for the use of the tax refund intercept program to collect past-due child support on behalf of non-minor children.

Prohibits garnishment of certain compensation for a service-connected disability paid to a former member of the Armed Forces for: (1) alimony; or (2) child support less than 60 days in arrears. Permits no more than 50 percent of such compensation to be garnished to pay for such child support.

Requires the Secretary to disclose new hire information to a State to assist in the administration of unemployment compensation programs.

Amends the Immigration and Nationality Act to provide that a nonimmigrant alien more than $2,500 in arrears in legally obligated child support shall be: (1) ineligible to receive a visa ; and (2) excluded from admission to the United States.

Provides for a payment rate increase to States for short term training of staff of State-licensed or State-approved child welfare agencies providing services.