Texas Attorney General Ken Paxton declared victory after the Internal Revenue Service backed down on a policy change that could have hamstrung the state's child support enforcement agencies. Paxton had previously filed a lawsuit against the IRS, challenging an Enforcement Announcement that would have restricted child support programs from employing contractor support services. These services had been utilized for over a decade without prior issues. The change proposed by the IRS was sudden and unheralded, threatening the access to essential data required by contractors for the operation of Texas's child support system.
The legal skirmish heated up when Attorney General Paxton sued the IRS in May 2023, to which the IRS responded by conceding on their end shortly after. The state had submitted a technology upgrade plan to the IRS, making significant improvements to the child support system that addressed concerns raised by the agency. Following the plan’s submission, the IRS conceded, issuing a letter that promised not to take any action against Texas. Paxton's office subsequently filed a notice of voluntary dismissal, but the state has reserved the right to challenge any future policies that might endanger the Texas child support program.
In a released statement, Paxton underscored the significance of his early intervention, saying, "Because we intervened early, Texas’s child support program will not be derailed by the Biden Administration’s unlawful agency action,” He further advised that while the outcome was favorable, his office is prepared to reengage in litigation if necessary: “We reached a positive outcome, but I will not hesitate to resume this litigation if IRS policy changes put Texas children at risk once again.”
Paxton's stance paints a picture of a protracted battle between the state and the federal government, with the welfare of Texas's children at stake. While the current resolution seems to be a win for the Texan authorities, it comes with an acknowledgment that further policy shifts by the Biden Administration's IRS could reactivate the dispute. For now, the voluntary dismissal signals a temporary peace, but the agreement comes with a clear message from Texas to the federal government: they're ready to fight back if the need arises to protect the mechanisms supporting the state's children.
For more information on this case, please refer to the official press release from the Office of the Texas Attorney General.
