Under Title IV-D, the state is assigned rights to all child support and/or alimony payments received by AFDC participants and these payments are excluded as income. See FSC 5401. Through the Child Support Enforcement Unit, the State seeks child support payments on its behalf, while at the same time providing AFDC payments to needy families. Up to $50 of the child support payments collected on behalf of individuals receiving AFDC are refunded to the individual. Any money remaining after distribution of the refund is distributed to the federal and state governments as reimbursement of the AFDC payment provided.

Child support refunds, also called DEFRA refunds, are automatically calculated into the household's food stamp budget as long as the refund recipient receives AFDC. For various reasons, some DEFRA refunds exceed $50. These refunds are also automatically calculated into the household's food stamp budget. See EMSUM 9000-9500 for additional information.

If the monthly child support payment exceeds the AFDC grant, the AFDC case will close. Any refunds received by a household after its AFDC case has closed must be manually added to the food stamp budget for the month in which the refund is to be received. See FSC 5704.3 below for additional information.