A bill to amend section 2055(e)(3) of the Internal Revenue Code.

(Reported to Senate from the Committee on Finance with amendment, S. Rept. 94-1350)

Amends the program of Child Support and Establishment of Paternity of Title IV of the Social Security Act to provide for the establishment of regulations governing the bringing of legal process to enforce the garnishment of wages of an employee of the United States, including a member of the Armed Forces, in satisfaction of such employee's obligation to provide child support or make alimony payments.

Vests in the President, jointly in the President pro tempore of the Senate and the Speaker of the House, and the Chief Justice of the Supreme Court, the authority to promulgate regulations for the executive, legislative, and judicial branches respectively, governing the manner in which such garnishment will be enforced.

Sets forth regulations governing service of process brought for the enforcement of an employee's legal obligation.

Defines exclusions from the amount due an employee from the government which shall be observed in computing the amount subject to garnishment.

Amends the Consumer Credit Protection Act to define the percentage of the aggregate disposable earnings of an individual which may be subjected to garnishment. States that, when such individual is supporting dependents, 50 percent of such earnings shall be subject to garnishment and, when such individual is not supporting dependents, 60 percent of such earnings shall be subject to garnishment.

Extends to projects relating to child support the support given under the Social Security Act to assist in promoting the objectives of the child support program. Increases from $4,000,000 to $6,000,000 the amount available for such demonstration projects after fiscal year 1976.

Requires the Secretary of Health, Education, and Welfare to report to Congress annually on programs of Child Support and Establishment of Paternity.