Why can the U.S. government collect money to pay debts owed to a state?
Under the federal Debt Collection Improvement Act (DCIA), an administrative offset such as the Treasury Offset Program (TOP) may be used to collect debts, including funds or property owed by a person to a state (including any past-due support being enforced by the state). The Secretary of the Treasury has the discretion to collect debts owed to states by offset; it is not mandatory. A reciprocal agreement must be made with the state and the appropriate state official must request the offset. Montana has signed an agreement with the Treasury Department to participate in TOP.
A Under the federal Debt Collection Improvement Act (DCIA), an administrative offset such as the Treasury Offset Program (TOP) may be used to collect debts, including funds or property owed by a person to a State (including any past-due support being enforced by the State). The Secretary of the Treasury has the discretion to collect debts owed to States by offset; it is not mandatory. A reciprocal agreement must be made with the state and the appropriate state official must request the offset. Currently, nine states, including Utah, have signed reciprocal agreements with the Treasury Department to participate in TOP.
