The National Directory of New Hires: An Overview

The National Directory of New Hires:
January 19, 2024
An Overview
Jessica Tollestrup
An Overview Updated March 7, 2025 (RS22889) Jump to Main Text of Report

Contents

• System Components and Data Processes
• Components
• Data Verification
• Reporting Time Frames
• Child Support Enforcement Time Frames
• Data Deletion
• Entities That May Receive NDNH Data
• Selected Policy Issues
• Use of NDNH Data for Program Integrity and Research
• Program Integrity
• Research
• Privacy and Data Security
• Non-Wage Workers

Tables

• Table 1. Non-CSS Entities Authorized to Receive NDNH Data, and Purposes
• Table A-1. NDNH Access Proposals in the President's Budget Submission

Appendixes

• Appendix. NDNH Access Proposals in the President's Budget Submission, FY2015-FY2025

Summary

The National Directory of New Hires (NDNH) is a database (part of the Federal Parent The National Directory of New Hires (NDNH) is a database (part of the Federal Parent
Specialist in Social Policy
Locator Service [FPLS]) that contains personal and financial data on nearly every Locator Service [FPLS]) that contains personal and financial data on nearly every

working American, as well as those receiving unemployment insurance benefits. It was working American, as well as those receiving unemployment insurance benefits. It was
originally established as part of the Personal Responsibility and Work Opportunity originally established as part of the Personal Responsibility and Work Opportunity

Reconciliation Act of 1996 (PRWORA; P.L. 104-193). It is maintained by the Office of Reconciliation Act of 1996 (PRWORA; P.L. 104-193). It is maintained by the Office of
Child Support Services (OCSS)Child Support Services (OCSS), which is a component of the Administration of Children and Families (ACF) at the U.S. Department of Health and Human Services (HHS). The system itself is housed in the Social Security Administration's (SSA's) enterprise data infrastructure. (Prior to June 5, 2023, this office was named the Office of Child Support . (Prior to June 5, 2023, this office was named the Office of Child Support
Enforcement [OCSE].) The NDNH database includes information on (1) all newly hired and rehired employees, Enforcement [OCSE].) The NDNH database includes information on (1) all newly hired and rehired employees,
compiled from state reports (and reports from federal employers), (2) the quarterly wage reports of existing compiled from state reports (and reports from federal employers), (2) the quarterly wage reports of existing
employees (in Unemployment Insurance [UI]-covered employment), and (3) UI applications and claims.employees (in Unemployment Insurance [UI]-covered employment), and (3) UI applications and claims.
The NDNH was originally established to help states locate noncustodial parents living in a different state so that The NDNH was originally established to help states locate noncustodial parents living in a different state so that
child support payments could be withheld from that parentchild support payments could be withheld from that parent’'s paycheck. Since its enactment in 1996, the authority s paycheck. Since its enactment in 1996, the authority
to access the NDNH has been extended to several additional programs and agencies to verify program eligibility, to access the NDNH has been extended to several additional programs and agencies to verify program eligibility,
prevent or end improper payments, collect overpayments, or ensure that program benefits are correct. Some argue prevent or end improper payments, collect overpayments, or ensure that program benefits are correct. Some argue
that access to the NDNH should be further expanded to additional programs and agencies. Although the directory that access to the NDNH should be further expanded to additional programs and agencies. Although the directory
is considered to be effective, concerns about data security and the privacy rights of employees remain a part of is considered to be effective, concerns about data security and the privacy rights of employees remain a part of
debates regarding expanded access. In addition, some observers have argued that the fact that the NDNH does not debates regarding expanded access. In addition, some observers have argued that the fact that the NDNH does not
include data on non-wage workers (e.g., independent contractors) limits its effectiveness as a child support include data on non-wage workers (e.g., independent contractors) limits its effectiveness as a child support
enforcement tool.enforcement tool.
Table A-1 lists NDNH access-related proposals that have been included in the Presidentlists NDNH access-related proposals that have been included in the President’'s budget submissions s budget submissions
between FY2015 and between FY2015 and FY2024FY2025. At least one NDNH proposal was identified in these source documents each fiscal . At least one NDNH proposal was identified in these source documents each fiscal
year since FY2015, except for FY2022 and FY2023.



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Contents
System Components and Data Processes ........................................................................................ 2
Components............................................................................................................................... 2
Data Verification ....................................................................................................................... 3
Reporting Time Frames ............................................................................................................. 3
Child Support Enforcement Time Frames ................................................................................. 4
Data Deletion ............................................................................................................................ 4
Entities That May Receive NDNH Data ......................................................................................... 4
Selected Policy Issues ..................................................................................................................... 9
Use of NDNH Data for Program Integrity and Research .......................................................... 9
Program Integrity ................................................................................................................ 9
Research ............................................................................................................................ 10
Privacy and Data Security ........................................................................................................ 11
Non-wage Workers .................................................................................................................. 12

Tables
Table 1. Non-CSE Entities Authorized to Receive NDNH Data, and Purposes .............................. 5

Table A-1. NDNH Access Proposals in the President’s Budget Submission ................................ 14

Appendixes
Appendix. NDNH Access Proposals in the President’s Budget Submission, FY2015-
FY2024 ....................................................................................................................................... 13

Contacts
Author Information ........................................................................................................................ 22


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year since FY2015, except for FY2022 and FY2023. The National Directory of New Hires (NDNH) is a national database of personal, wage, and he National Directory of New Hires (NDNH) is a national database of personal, wage, and
employment information on American workers.employment information on American workers.11 Although the authority for the NDNH Although the authority for the NDNH
T was originally established as part of the Personal Responsibility and Work Opportunity was originally established as part of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (PRWORA; P.L. 104-193), more than two dozen states had Reconciliation Act of 1996 (PRWORA; P.L. 104-193), more than two dozen states had
established new hires reporting programs at their own initiative prior to its enactment.established new hires reporting programs at their own initiative prior to its enactment.2
2 Historically, the primary purpose of the NDNH has been to aid in efforts by state child support Historically, the primary purpose of the NDNH has been to aid in efforts by state child support
enforcement (CSEservices (CSS) agencies to locate parents and enforce child support orders. (According to ) agencies to locate parents and enforce child support orders. (According to
HHSthe U.S. Department of Health and Human Services [HHS], an estimated 4., an estimated 4.51 million noncustodial parents and putative million noncustodial parents and putative fathers3fathers³ were located through were located through
the NDNH in the NDNH in FY2022FY2023, up from 2.8 million in FY1999., up from 2.8 million in FY1999.44) However, federal law also permits ) However, federal law also permits
NDNH data to be shared with other specified programs and agencies (mostly for program NDNH data to be shared with other specified programs and agencies (mostly for program
integrity and policy evaluation research purposes).integrity and policy evaluation research purposes).
The NDNH is part of the Federal Parent Locator Service (FPLS).The NDNH is part of the Federal Parent Locator Service (FPLS).55 It is maintained by the federal It is maintained by the federal
Office of Child Support Services (OCSS),Office of Child Support Services (OCSS),66 which is a component of the Administration of which is a component of the Administration of
Children and Families (ACF) at Children and Families (ACF) at the Department of Health and Human Services (HHS).7HHS.⁷ (Prior to (Prior to
June 5, 2023, this office was named the Office of Child Support Enforcement [OCSEJune 5, 2023, this office was named the Office of Child Support Enforcement [OCSE].8.] In cases where this report refers to actions taken or documents published under OCSS's former name, the report refers to it as OCSE.⁸) The data ) The data
in this system come from information that is reported by the State Directories of New Hires, State in this system come from information that is reported by the State Directories of New Hires, State
Workforce Agencies, and federal agencies to OCSS. HHS estimates that about Workforce Agencies, and federal agencies to OCSS. HHS estimates that about 861815 million million
records were posted to the NDNH during records were posted to the NDNH during FY2022.9
FY2023.⁹ The first section of this report provides an overview of the NDNH system components and data The first section of this report provides an overview of the NDNH system components and data
processes. The second and third sections discuss the entities that may receive NDNH data and processes. The second and third sections discuss the entities that may receive NDNH data and
selected policy issues associated with the system. selected policy issues associated with the system. The Appendix identifies NDNH access identifies NDNH access
proposals included in the Presidentproposals included in the President’'s budget submissions since FY2015. System Components and Data Processes Components The NDNH contains data from three different sources (or "files"s budget submissions since FY2015.

1 Federal law provisions related to the State Directory of New Hires are in Section 453A of the Social Security Act.
Federal law provisions specifically related to the NDNH (i.e., the national system) are in Sections 453(i) and (j) of the
act. The NDNH, together with the State Directories of New Hires and the federal and state Child Support Case
Registries, was established as part of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(P.L. 104-193). Other provisions in Section 453 governing the Federal Parent Locator Service (FPLS), of which the
NDNH is a component system, may also be relevant.
2 U.S. Department of Health and Human Services (HHS), Administration for Children and Families (ACF), Office of
Child Support Enforcement (OCSE), 15 Facts on Employer New Hire Reporting Child Support Enforcement: A
Compilation of Evidence and Experience from the States, February 12, 1997, pp. 1-2.
3 A putative father is “the person alleged to be the father of the child but who has not yet been medically or legally
declared to be the legal father” (HHS, ACF, OCSE, Glossary of Common Child Support Terms, 2013,
https://www.acf.hhs.gov/sites/default/files/programs/css/child_support_glossary.pdf).
4 HHS, ACF, OCSE, Preliminary Data Report for FY2022, Table P-97, https://www.acf.hhs.gov/sites/default/files/
documents/ocse/fy_2022_preliminary_report.pdf.
5 For a summary of FPLS components, see CRS Report RS22380, Child Support Enforcement: Program Basics.
6 The NDNH system itself is housed in the Social Security Administration’s (SSA’s) enterprise data infrastructure.
7 Title IV-D of the Social Security Act and the regulations in 45 C.F.R. refer to the “Office of Child Support
Enforcement” and the “Child Support Enforcement Program.” However, on June 5, 2023, the U.S. Department of
Health and Human Services (HHS) published a notice in the Federal Register changing the name of the program and
administering entity within HHS to the Office of Child Support Services in Part K of the Statement of Organization,
Functions, and Delegations of Authority of the Department of Health and Human Services, Administration for Children
and Families (ACF) (Federal Register, Vol. 88, No. 107, Monday July 5, 2023, p. 36587). As no conforming changes
have been made to Title IV-D or 45 C.F.R, this report continues to refer to the program as “Child Support
Enforcement.” (The CSE program statutory authorities are found in Title IV-D of the Social Security Act [42 U.S.C.
§651 through §669b]. The CSE federal regulations are found in 45 C.F.R. §301 through §310. Note.)
8 See footnote 7. For citations, this report uses the name of the entity and program listed on the cited publication.
9 HHS, ACF, OCSE, Preliminary Data Report for FY2022, Table P-97, https://www.acf.hhs.gov/sites/default/files/
documents/ocse/fy_2022_preliminary_report.pdf.
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The National Directory of New Hires: An Overview

System Components and Data Processes
Components
The NDNH contains data from three different sources (or “files”): the new hires file, the quarterly ): the new hires file, the quarterly
wage file, and the Unemployment Insurance file.wage file, and the Unemployment Insurance file.
The The new hires (NH) file contains information from each employee contains information from each employee’'s W-4 form.s W-4 form.1010 Employers are Employers are
required by Section 453A of the Social Security Act to send NH reports to the appropriate State required by Section 453A of the Social Security Act to send NH reports to the appropriate State
Directory of New Hires (SDNH), which then compiles and sends the required information to the Directory of New Hires (SDNH), which then compiles and sends the required information to the
NDNH. (The state directories may be housed in a state or local child support agency, the state NDNH. (The state directories may be housed in a state or local child support agency, the state
workforce agency, the state revenue department, or a private vendor under contract with the workforce agency, the state revenue department, or a private vendor under contract with the
state.state.1111) Federal employers (i.e., agencies) send their NH reports directly to the NDNH.) Federal employers (i.e., agencies) send their NH reports directly to the NDNH.1212 An NH An NH
report contains six data elements: the name, address, and Social Security number of each new report contains six data elements: the name, address, and Social Security number of each new
employee; and the employeremployee; and the employer’'s name, address, and tax identification number. (Some states require s name, address, and tax identification number. (Some states require
or request additional information.)or request additional information.)
The The quarterly wage (QW) file contains quarterly wage information on individual employees in contains quarterly wage information on individual employees in
Unemployment Insurance (UI)-covered employment.Unemployment Insurance (UI)-covered employment.1313 This information comes from the records This information comes from the records
of the State Workforce Agencies (SWAs; sometimes called State Employment Security Agencies) of the State Workforce Agencies (SWAs; sometimes called State Employment Security Agencies)
and the federal government. The SWAs and federal government employers must submit the name, and the federal government. The SWAs and federal government employers must submit the name,
Social Security number, and wage amount for each employee, and the employerSocial Security number, and wage amount for each employee, and the employer’'s name, address, s name, address,
and tax identification number.and tax identification number.1414 All of these data must be delineated by quarterly reporting period. All of these data must be delineated by quarterly reporting period.
Separate quarterly wage records are established for each job held by an individual.Separate quarterly wage records are established for each job held by an individual.
The The Unemployment Insurance (UI) file contains information pertaining to persons who have contains information pertaining to persons who have
received or applied for unemployment benefits, as reported by the SWAs.received or applied for unemployment benefits, as reported by the SWAs.1515 With respect to this With respect to this
file, the state can only submit information that is already contained in the records of the state file, the state can only submit information that is already contained in the records of the state
agency that administers the UI program (generally the SWA).agency that administers the UI program (generally the SWA).1616 The required data elements are the The required data elements are the
claimant’claimant's name, Social Security number, address, benefit amount, and reporting period. Data Verification s name, Social Security number, address, benefit amount, and reporting period.

10 The W-4 form, also called the Employee’s Withholding Allowance Certificate, is the form all employees must
complete so that employers can withhold the correct federal income tax from each person’s paycheck. Since the
enactment of P.L. 112-40, the requirement to report “newly hired employees” has been expanded to include rehired
employees who have been separated from employment for at least 60 days.
11 HHS, ACF, OCSE, National Directory of New Hires Guide for Data Submission, Version 13.3, February 8, 2019,
pp. 2-1 and 2-2, https://www.acf.hhs.gov/sites/default/files/ocse/ndnh_guide_for_data_submission.pdf.
12 States have the option of imposing a civil monetary penalty for the failure of employers to report the required new
hire information. The penalty cannot exceed $25 per failure to meet the requirements with respect to each newly hired
employee, or $500 if under state law the failure is the result of a conspiracy between the employer and the employee
not to supply the required report or to supply a false or incomplete report. Section 453(n) of the Social Security Act
allows certain employees of a federal or state agency performing intelligence or counterintelligence functions not to be
reported to the new hires directories.
13 For information on the federal-state UI system, including coverage issues, see CRS Report R46687, Unemployment
Insurance (UI) Benefits: Permanent-Law Programs and the COVID-19 Pandemic Response.
14 See 20 C.F.R. §603.6(b)(5).
15 HHS, ACF, OCSE, A Guide to the National Directory of New Hires, January 13, 2023, p. 2.
16 Ibid.
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Data Verification
The names and Social Security numbers in the NH, QW, and UI data received from the states are The names and Social Security numbers in the NH, QW, and UI data received from the states are
transmitted by HHS to the SSA for verification. To the extent necessary, HHS also has the transmitted by HHS to the SSA for verification. To the extent necessary, HHS also has the
authority to transmit additional information on employees (dates of birth) and employers (tax authority to transmit additional information on employees (dates of birth) and employers (tax
identification numbers) contained in the NH reports to be verified by the SSA as well. The SSA is identification numbers) contained in the NH reports to be verified by the SSA as well. The SSA is
required to verify the accuracy of, correct, or supply missing data to the extent possible.required to verify the accuracy of, correct, or supply missing data to the extent possible.17
17 According to OCSS, all Social Security numbers in NH reports and UI files are verified by the According to OCSS, all Social Security numbers in NH reports and UI files are verified by the
SSA before the information is added to the NDNH database. Some stateSSA before the information is added to the NDNH database. Some state’'s QW files, however, do s QW files, however, do
not include all of the elements necessary for a successful verification. In such situations, the not include all of the elements necessary for a successful verification. In such situations, the
information is transmitted to the NDNH but is flagged to indicate that the SSA was not able to information is transmitted to the NDNH but is flagged to indicate that the SSA was not able to
verify the Social Security number and name combination.verify the Social Security number and name combination.¹⁸18
Reporting Time Frames
In general, each of the three files that comprise the NDNH have different time frames for In general, each of the three files that comprise the NDNH have different time frames for
reporting and matching. Selected elements of these time frames are summarized below.reporting and matching. Selected elements of these time frames are summarized below.¹⁹ 19
NH data generally are reported on an ongoing basis in the days and weeks after the hire occurs:NH data generally are reported on an ongoing basis in the days and weeks after the hire occurs:
• GenerallyGenerally, within 20 days after the employee is hired, employers and federal within 20 days after the employee is hired, employers and federal
agencies must provide an NH report on the employee to the SDNH.agencies must provide an NH report on the employee to the SDNH.
• Within five business days of receipt from an employer, the NH report must be Within five business days of receipt from an employer, the NH report must be
entered into the database maintained by the SDNH.entered into the database maintained by the SDNH.
• Within three business days after the new hire information from the employer has Within three business days after the new hire information from the employer has
been entered into the SDNH, the SDNH must submit its NH reports to the been entered into the SDNH, the SDNH must submit its NH reports to the
NDNH.NDNH.
• Within two business days after the NH information is received from the SDNH, Within two business days after the NH information is received from the SDNH,
the information must be entered into the computer system of the NDNH.the information must be entered into the computer system of the NDNH.
In contrast, QW and UI reporting from the states generally occurs on a less frequent basis:In contrast, QW and UI reporting from the states generally occurs on a less frequent basis:
• Within four months of the end of a reporting quarter, QW information on existing Within four months of the end of a reporting quarter, QW information on existing
employees must be transmitted to the NDNH from the SWAs. (For example, employees must be transmitted to the NDNH from the SWAs. (For example,
January through March data are due no later than July 31.)January through March data are due no later than July 31.)2020 While most states While most states
follow this quarterly schedule, some states report QW data on a monthly or follow this quarterly schedule, some states report QW data on a monthly or
weekly basis.weekly basis.
• Within one month of the end of a reporting quarter, UI information (which comes Within one month of the end of a reporting quarter, UI information (which comes
from SWAs) must be transmitted to the NDNH. (For example, January through from SWAs) must be transmitted to the NDNH. (For example, January through
March data are due no later than April 30.)

17 Social Security Act §453(j).
18 HHS, ACF, OCSE, National Directory of New Hires Guide for Data Submission, Version 13.4, August 10, 2022, pp.
1-5 and 1-6, https://www.acf.hhs.gov/sites/default/files/documents/ocse/ndnh_guide_for_data_submission.pdf.
19 For a full list of time frames for reporting and matching, see ibid., pp. 2-1, 3-1, and 4-1.
20 Federal agencies are required to transmit QW information on federal employees to the NDNH no later than one
month after the end of a calendar quarter.
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March data are due no later than April 30.)Child Support Enforcement Time Frames
The NDNH is used routinely for various The NDNH is used routinely for various child support enforcementCSS-related purposes. To locate -related purposes. To locate
individuals in a paternity establishment case or assist in a case involving the establishment, individuals in a paternity establishment case or assist in a case involving the establishment,
modification, or enforcement of child support, the HHS Secretary must compare information in modification, or enforcement of child support, the HHS Secretary must compare information in
the NDNH against information in the child support abstracts in the Federal Child Support Case the NDNH against information in the child support abstracts in the Federal Child Support Case
Registry (another component system of the FPLS) at least every two business days. If a match is Registry (another component system of the FPLS) at least every two business days. If a match is
found, the HHS Secretary must report the information to the appropriate state found, the HHS Secretary must report the information to the appropriate state CSECSS agency within agency within
two business days.two business days.
In addition to locating absent parents, the NDNH can be used to identify wages that could be In addition to locating absent parents, the NDNH can be used to identify wages that could be
subject to income withholding. About three-quarters of child support is collected via this subject to income withholding. About three-quarters of child support is collected via this
method.method.2121 In each case where a In each case where a CSECSS agency identifies such wages, it is required to instruct the agency identifies such wages, it is required to instruct the
appropriate employer to withhold child support obligations from the employeeappropriate employer to withhold child support obligations from the employee’'s paycheck within s paycheck within
two business days (unless the employeetwo business days (unless the employee’'s income is not subject to withholding).s income is not subject to withholding).
Data Deletion
All NDNH data must be deleted from the database no later than 24 months after the date of entry. All NDNH data must be deleted from the database no later than 24 months after the date of entry.
These deletion requirements, coupled with the reporting schedules outlined in the previous These deletion requirements, coupled with the reporting schedules outlined in the previous
section, result in a constant cycling of wage and employment data into and out of the NDNH.section, result in a constant cycling of wage and employment data into and out of the NDNH.
For CSE For CSS purposes, access to QW and UI reports is prohibited starting 12 months after they have purposes, access to QW and UI reports is prohibited starting 12 months after they have
been entered if no match has occurred as part of information comparison procedures.been entered if no match has occurred as part of information comparison procedures.
Non-CSE Non-CSS programs and agencies that enter into data matching agreements with OCSS are programs and agencies that enter into data matching agreements with OCSS are
required to delete the NDNH data that are shared with them on a timeline that is negotiated with required to delete the NDNH data that are shared with them on a timeline that is negotiated with
OCSS based on the purpose for which the match will be used (e.g., recertification of benefit OCSS based on the purpose for which the match will be used (e.g., recertification of benefit
eligibility). In addition, the HHS Secretary may keep samples of data entered into the NDNH for eligibility). In addition, the HHS Secretary may keep samples of data entered into the NDNH for
research purposes that are specified in Section 453(j)(5) of the Social Security Act, but without research purposes that are specified in Section 453(j)(5) of the Social Security Act, but without
personal identifiers.personal identifiers.
Entities That May Receive NDNH Data
The original purpose of the NDNH was to help states locate child support obligors who were The original purpose of the NDNH was to help states locate child support obligors who were
working in other states so that child support could be withheld from the noncustodial parentworking in other states so that child support could be withheld from the noncustodial parent’s
's paycheck. It is estimated that about one-quarter of child support cases involve noncustodial paycheck. It is estimated that about one-quarter of child support cases involve noncustodial
parents who either live outside the state in which their children reside or have unknown parents who either live outside the state in which their children reside or have unknown
whereabouts.whereabouts.2222 The benefit of using the NDNH (as opposed to an individual state The benefit of using the NDNH (as opposed to an individual state’'s data) is that s data) is that
the system provides nationwide information about noncustodial parents who have obtained work the system provides nationwide information about noncustodial parents who have obtained work
or claimed unemployment insurance benefits, or who are employed by the federal government. or claimed unemployment insurance benefits, or who are employed by the federal government.
Moreover, because many noncustodial parents are in temporary employment or move from job to Moreover, because many noncustodial parents are in temporary employment or move from job to
job, the quick reporting of information on new hires greatly increases the likelihood that the job, the quick reporting of information on new hires greatly increases the likelihood that the
NDNH will be able to locate a noncustodial parent and pass on the information to states so that NDNH will be able to locate a noncustodial parent and pass on the information to states so that

21 HHS, ACF, OCSE, Preliminary Data Report for FY2022, Table P-29, https://www.acf.hhs.gov/sites/default/files/
documents/ocse/fy_2022_preliminary_report.pdf.
22 Kye Lippold and Elaine Sorensen, Characteristics of Families Served by the Child Support (IV-D) Program: 2016
Census Survey Results, Urban Institute, November 2018, p. 1, https://www.acf.hhs.gov/sites/default/files/documents/
ocse/iv_d_characteristics_2016_census_results.pdf.
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the CSEthe CSS agencies can pursue support orders and collect child support via income withholding agencies can pursue support orders and collect child support via income withholding
before the noncustodial parent changes jobs.before the noncustodial parent changes jobs.23
23 While the NDNH is primarily intended to be a While the NDNH is primarily intended to be a CSECSS tool that aids in the location of noncustodial tool that aids in the location of noncustodial
parents, several additional programs and agencies have the authority to receive data from it to parents, several additional programs and agencies have the authority to receive data from it to
verify program eligibility, prevent or end improper payments, collect overpayments or ensure that verify program eligibility, prevent or end improper payments, collect overpayments or ensure that
program benefits are properly paid, or conduct research. Although the directory is considered program benefits are properly paid, or conduct research. Although the directory is considered
effective, concerns about data security and the privacy rights of employees remain a part of effective, concerns about data security and the privacy rights of employees remain a part of
debates regarding expanded access to NDNH data. (These are discussed in the next section.) To debates regarding expanded access to NDNH data. (These are discussed in the next section.) To
safeguard the privacy of individuals in the NDNH, federal law requires that OCSS restrict access safeguard the privacy of individuals in the NDNH, federal law requires that OCSS restrict access
to the NDNH database to to the NDNH database to “authorized”"authorized" persons. Moreover, the NDNH cannot be used for any persons. Moreover, the NDNH cannot be used for any
purpose not authorized by federal law. Thus, the enactment of law is required for any entity not purpose not authorized by federal law. Thus, the enactment of law is required for any entity not
mentioned in this section to receive NDNH data.mentioned in this section to receive NDNH data.
The non-The non-CSECSS entities authorized to receive NDNH data and the purposes for which it can be entities authorized to receive NDNH data and the purposes for which it can be
received (as of the received (as of the cover date of this report) are summarized date of this report) are summarized inin Table 1. (Authorities enacted outside of (Authorities enacted outside of
Title IV-D of the Social Security Act are listed at the end of the table.)Title IV-D of the Social Security Act are listed at the end of the table.)
Table 1. Non-CSECSS Entities Authorized to Receive NDNH Data, and Purposes
Statutory
Citation Citation
Entity
Purpose(s)

Legislative History

42 U.S.C. §§653(i)(3) and (j)(9)Social Security Act §453(j)(3) and (j)(9)

Secretary of the Treasury

To administer Section 32 (earned income tax credit; EITC) of the Internal Revenue Code (IRC), including verification in order to make an advanced payment of the EITC.

To verify a claim of employment in a tax return.

To collect Legislative History
42 U.S.C.
Secretary of the
To administer Section 32 (earned income tax
EITC and employment
§§653(i)(3)
Treasury
credit; EITC) of the Internal Revenue Code
verification: P.L. 104-193
and (j)(9)
(IRC), including verification in order to make an
(enacted August 22, 1996)
Social Security
advanced payment of the EITC.
Nontax debt: P.L. 108-447
Act §453(j)(3)
To verify a claim of employment in a tax return.
(enacted in December 8,
and (j)(9)
To col ect delinquent nontax debt owed to the
2004)
delinquent nontax debt owed to the federal government (e.g., small business loans, federal government (e.g., small business loans,
Department of Veterans Affairs loans, Department of Veterans Affairs loans,
agricultural loans, etc.) when the debt has been agricultural loans, etc.) when the debt has been
referred to the Secretary of the Treasury in referred to the Secretary of the Treasury in
accordance with 31 U.S.C. §3711(g).accordance with 31 U.S.C. §3711(g).
42 U.S.C.
State Welfare (Title
To carry out state responsibilities under
P.L. 104-193 (enacted
§653(j)(3)
IV-A or Temporary
programs funded under Title IV, Part A of the
August 22, 1996)
Social Security
Assistance for Needy Social Security Act.
Act §453(j)(3)
Families) Agencies
42 U.S.C.

EITC and employment verification: P.L. 104-193 (enacted August 22, 1996)

Nontax debt: P.L. 108-447 (enacted in December 8, 2004)

42 U.S.C. §653(j)(3)Social Security Act §453(j)(3)

State Welfare (Title IV-A or Temporary Assistance for Needy Families) Agencies

To carry out state responsibilities under programs funded under Title IV, Part A of the Social Security Act.

P.L. 104-193 (enacted August 22, 1996)

42 U.S.C. §653(j)(3)Social Security Act §453(j)(3)

State Child and Family Services (Title IV-B) Agencies

To carry out state responsibilities under programs funded under Title IV, Part B of the Social Security Act.

P.L. 110-351 (enacted October 7, 2008)

42 U.S.C. §653(j)(3)Social Security Act §453(j)(3)

State Foster Care and Adoption Assistance (Title IV-E) Agencies

State Child and
To carry out state responsibilities under
P.L. 110-351 (enacted
§653(j)(3)
Family Services (Title
programs funded under Title IV, Part B of the
October 7, 2008)
Social Security
IV-B) Agencies
Social Security Act.

Act §453(j)(3)
42 U.S.C.
State Foster Care
To carry out state responsibilities under
P.L. 110-351 (enacted
§653(j)(3)
and Adoption
programs funded under Title IV, Part E of the
October 7, 2008)
Social Security
Assistance (Title IV-
Social Security Act.
Act §453(j)(3)
E) Agencies
42 U.S.C.
Commissioner of the The NDNH “shall provide the Commissioner of P.L. 104-193 (enacted
§653(j)(4)
To carry out state responsibilities under programs funded under Title IV, Part E of the Social Security Act.

P.L. 110-351 (enacted October 7, 2008)

42 U.S.C. §653(j)(4)Social Security Act §453(j)(4) Commissioner of the Social Security
Social Security with all information in the
August 22, 1996)
Social Security
Social Security Administration (SSA)Administration (SSA)
National Directory.”a
Act §453(j)(4)

23 Section 454(17) of the Social Security Act requires that all state CSE programs have in effect agreements with HHS
for the use of the FPLS, which includes the NDNH.
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Statutory
Citation
Entity
Purpose(s)
Legislative History
42 U.S.C.
HHS
To conduct research found by the HHS
P.L. 104-193 (enacted
§653(j)(5)
Researchers/others
Secretary to be likely to contribute to achieving
August 22, 1996)
Social Security
the purposes of Part A or Part D of the Social

Act §453(j)(5)
Security Act (without personal identifiers).
42 U.S.C.
Secretary of
To col ect debt from individuals who have
P.L. 106-113 (enacted
§653(j)(6)
Education
defaulted on student loans or owe an obligation
November 29, 1999)
Social Security
to refund an overpayment of a grant.
Act §453(j)(6)
The NDNH "shall provide the Commissioner of Social Security with all information in the National Directory."^a

P.L. 104-193 (enacted August 22, 1996)

42 U.S.C. §653(j)(5)Social Security Act §453(j)(5)

HHS Researchers/others

To conduct research found by the HHS Secretary to be likely to contribute to achieving the purposes of Part A or Part D of the Social Security Act (without personal identifiers).

P.L. 104-193 (enacted August 22, 1996)

42 U.S.C. §653(j)(6)Social Security Act §453(j)(6)

Secretary of Education

To collect debt from individuals who have defaulted on student loans or owe an obligation to refund an overpayment of a grant.

To conduct analyses of student loan defaults To conduct analyses of student loan defaults
(after removal of personal identifiers).(after removal of personal identifiers).
42 U.S.C.
Secretary of Housing
To verify the employment and income of
P.L. 108-199 (enacted
§653(j)(7)
and Urban
individuals participating in certain enumerated
January 23, 2004)
Social Security
Development (HUD) HUD housing programs.
Act §453(j)(7)

P.L. 106-113 (enacted November 29, 1999)

42 U.S.C. §653(j)(7)Social Security Act §453(j)(7)

Secretary of Housing and Urban Development (HUD)

To verify the employment and income of individuals participating in certain enumerated HUD housing programs.

To conduct analyses of the employment and To conduct analyses of the employment and
income reporting of those individuals (after income reporting of those individuals (after
removal of personal identifiers).removal of personal identifiers).
42 U.S.C.
State Workforce
To administer an unemployment compensation
P.L. 108-P.L. 108-295199 (enacted January 23, 2004) 42 U.S.C. §653(j)(8)Social Security Act §453(j)(8)

State Workforce Agencies (SWAs)

To administer an unemployment compensation program under federal or state law.^b

P.L. 108-295 (enacted August 9, 2004)

42 U.S.C. §653(j)(10)Social Security Act §453(j)(10) (enacted
§653(j)(8)
Agencies (SWAs)
program under federal or state law.b
August 9, 2004)
Social Security

Act §453(j)(8)
42 U.S.C.
State Supplemental
To administer SNAP under the Food and
State Supplemental Nutrition Assistance Program (SNAP) Agencies

To administer SNAP under the Food and Nutrition Act of 2008.

P.L. 109-250P.L. 109-250 (enacted July 27, 2006) (enacted July
§653(j)(10)
Nutrition Assistance
Nutrition Act of 2008.
27, 2006)
Social Security
Program (SNAP)
P.L. 110-246 (enacted June P.L. 110-246 (enacted June
Act
Agencies
18, 2008)
§453(j)(10)
18, 2008) P.L. 113-79 (enacted P.L. 113-79 (enacted
February 7, 2014)c
42 U.S.C.
Medicaid and
To permit state programs that meet certain
P.L. 111-3 (enacted
§1396w-2
Children’s Health
criteria to receive data from the NDNH
February 4, 2009)
note
Insurance Program
“February 7, 2014)^c

42 U.S.C. §1396w-2 note

Medicaid and Children's Health Insurance Program (CHIP)

To permit state programs that meet certain criteria to receive data from the NDNH "relevant to eligibility determinations and relevant to eligibility determinations and
(CHIP)
determining the correct amount of benefits determining the correct amount of benefits
under a State child health plan under CHIP or a under a State child health plan under CHIP or a
State plan under Medicaid.State plan under Medicaid.”d
31 U.S.C.
Government
To discharge the duties of the Comptrol er
P.L. 115-3"^d

P.L. 111-3 (enacted February 4, 2009)

31 U.S.C. §721 note

Government Accountability Office (GAO)

To discharge the duties of the Comptroller General under 31 U.S.C. §716.^e

P.L. 115-3 (enacted January 31, 2017)

(enacted
§721 note
Accountability Office
General under 31 U.S.C. §716.e
January 31, 2017)
(GAO)
P.L. 115-334P.L. 115-334, §6417

Secretary of Agriculture (USDA)

,
Secretary of
To verify the income of individuals participating To verify the income of individuals participating
P.L. 115-334 (enacted
§6417
Agriculture (USDA)
in certain enumerated USDA housing programs.in certain enumerated USDA housing programs. December 20, 2018)
To conduct analyses of the employment and To conduct analyses of the employment and
income reporting of those individuals (after income reporting of those individuals (after
removal of personal removal of personal identifiers).f
identifiers).^f

P.L. 115-334 (enacted December 20, 2018)

Source: Adapted from U.S. Department of Health and Human Services (HHS), Administration for Children and Adapted from U.S. Department of Health and Human Services (HHS), Administration for Children and
Families (ACF), Office of Child Support Families (ACF), Office of Child Support Enforcement (OCSEServices (OCSS), ), A Guide to the National Directory of New Hires, pp. , pp.
4-5, 4-6, https://www.acf.hhs.gov/sites/default/files/documents/ocse/https://www.acf.hhs.gov/sites/default/files/documents/ocse/
a_guide_to_the_national_directory_of_new_hires.pdf, with additional CRS legislative analysis.a_guide_to_the_national_directory_of_new_hires.pdf, with additional CRS legislative analysis.
a. a. The SSA uses NDNH data (pursuant to this authority) to establish or verify eligibility or payments under The SSA uses NDNH data (pursuant to this authority) to establish or verify eligibility or payments under
the Supplemental Security Income program, to establish or verify eligibility or continuing entitlement under the Supplemental Security Income program, to establish or verify eligibility or continuing entitlement under
the Disability Insurance program, to administer the Ticket-to-Work and Self-Sufficiency program, and to the Disability Insurance program, to administer the Ticket-to-Work and Self-Sufficiency program, and to
determine eligibility of applications for Extra Help (low-income subsidy assistance) under the Medicare Part determine eligibility of applications for Extra Help (low-income subsidy assistance) under the Medicare Part
D Prescription Drug Coverage Program. For further information, see SSA matching agreements 1074, 1098, D Prescription Drug Coverage Program. For further information, see SSA matching agreements 1074, 1098,
and 1306, https://www.ssa.gov/privacy/computer_matching_programs.htmland 1306, https://www.ssa.gov/privacy/computer_matching_programs.html.
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b. . b. Although State Workforce Agencies (SWAs) already have access to the quarterly wage and UI data Although State Workforce Agencies (SWAs) already have access to the quarterly wage and UI data
elements, SWAs require the new hires data element for UI program administration purposes so UI elements, SWAs require the new hires data element for UI program administration purposes so UI
claimants who are employed/reemployed do not receive UI benefits.claimants who are employed/reemployed do not receive UI benefits.
c. c. P.L. 109-250 allowed state agencies that administer the P.L. 109-250 allowed state agencies that administer the “"Food Stamp programFood Stamp program”" to receive NDNH data. P.L. to receive NDNH data. P.L.
110-246 changed program references to the 110-246 changed program references to the “"Supplemental Nutrition Assistance Program.Supplemental Nutrition Assistance Program.”" P.L. 113-79 P.L. 113-79
required all state SNAP agencies (rather than giving them the option) to data-match with the NDNH at the required all state SNAP agencies (rather than giving them the option) to data-match with the NDNH at the
time of SNAP certification for the purposes of determining eligibility to receive SNAP benefits and time of SNAP certification for the purposes of determining eligibility to receive SNAP benefits and
determining the correct amount of those benefits.determining the correct amount of those benefits.
d. d. Section 1942(e) of P.L. 111-3 directed that Section 1942(e) of P.L. 111-3 directed that “"The Secretary shall enter into such agreements as are The Secretary shall enter into such agreements as are
necessary to permit a State that elects the Express Lane option under section 1902(e)(13) of the Social necessary to permit a State that elects the Express Lane option under section 1902(e)(13) of the Social
Security Act to receive data directly relevant to eligibility determinations and determining the correct Security Act to receive data directly relevant to eligibility determinations and determining the correct
amount of benefits under a State child health plan under CHIP or a State plan under Medicaid from the amount of benefits under a State child health plan under CHIP or a State plan under Medicaid from the
fol owingfollowing: (1) The National Directory of New Hires….: (1) The National Directory of New Hires….”" It does not appear that this authority has ever been It does not appear that this authority has ever been
implemented.implemented.
e. e. 31 U.S.C. §721 provides that 31 U.S.C. §721 provides that “"no provision in the Social Security Act, including Section 453(l) of that Act, no provision in the Social Security Act, including Section 453(l) of that Act,
shall be construed to limit, amend, or supersede the authority of the shall be construed to limit, amend, or supersede the authority of the Comptrol erComptroller General to obtain any General to obtain any
information or to inspect any record under section 716 of this title.information or to inspect any record under section 716 of this title.”" For background, see Department of For background, see Department of
Justice, Whether the Department of Health and Human Services May Provide the Government Justice, Whether the Department of Health and Human Services May Provide the Government
Accountability Office Access to Information in the National Directory of New Hires, Memorandum Opinion Accountability Office Access to Information in the National Directory of New Hires, Memorandum Opinion
for the Acting General Counsel, August 23, 2011, https://www.justice.gov/opinion/file/833541/for the Acting General Counsel, August 23, 2011, https://www.justice.gov/opinion/file/833541/download.
f.
download. f. P.L. 115-334 granted the USDA P.L. 115-334 granted the USDA “"the same access to information and subject to the same requirements the same access to information and subject to the same requirements
applicable to the Secretary of Housing and Urban Development as provided in Section 453 of the Social applicable to the Secretary of Housing and Urban Development as provided in Section 453 of the Social
Security Act … to verify income for individuals participating in [enumerated programs].Security Act … to verify income for individuals participating in [enumerated programs].”" These USDA These USDA
authorities were intended to align the treatment of the rural housing programs with similar HUD programs, authorities were intended to align the treatment of the rural housing programs with similar HUD programs,
as well as to address the Improper Payments Act. They were originally enacted on a temporary basis in as well as to address the Improper Payments Act. They were originally enacted on a temporary basis in
Section 749 the FY2018 Agriculture, Rural Development, Food and Drug Administration, and Related Section 749 the FY2018 Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act (P.L. 115-141, Division A).Agencies Appropriations Act (P.L. 115-141, Division A).
When the authority for the NDNH was established as part of the PRWORA in 1996, it specified When the authority for the NDNH was established as part of the PRWORA in 1996, it specified
that certain entities (in addition to state that certain entities (in addition to state CSECSS agencies) could receive data from the NDNH, agencies) could receive data from the NDNH,
namelynamely
• State Welfare (Title IV-A or Temporary Assistance for Needy Families [TANF]) State Welfare (Title IV-A or Temporary Assistance for Needy Families [TANF])
Agencies (to carry out their responsibilities under the TANF program);Agencies (to carry out their responsibilities under the TANF program);
• the Secretary of the Treasury (to administer the EITC and conduct employment the Secretary of the Treasury (to administer the EITC and conduct employment
verification for tax returns); andverification for tax returns); and
• entities conducting research found by the HHS Secretary to be likely to entities conducting research found by the HHS Secretary to be likely to
contribute to achieving the purposes of Part A (i.e., the TANF program) or Part D contribute to achieving the purposes of Part A (i.e., the TANF program) or Part D
(i.e., the (i.e., the CSECSS program) of the Social Security Act. program) of the Social Security Act.
The PRWORA also required the NDNH to provide the Social Security Commissioner with The PRWORA also required the NDNH to provide the Social Security Commissioner with “"all all
information in the directory.information in the directory.”" NDNH data are currently used by the SSA (pursuant to this NDNH data are currently used by the SSA (pursuant to this
authority) for purposes that include determinations of eligibility and payment amounts for the authority) for purposes that include determinations of eligibility and payment amounts for the
Supplemental Security Income (SSI) program, the Disability Insurance (DI) program, the Ticket-Supplemental Security Income (SSI) program, the Disability Insurance (DI) program, the Ticket-
to-Work and Self-Sufficiency (Ticket) program, and Extra Help (low-income subsidy assistance) to-Work and Self-Sufficiency (Ticket) program, and Extra Help (low-income subsidy assistance)
under the Medicare Part D Prescription Drug Coverage Program.under the Medicare Part D Prescription Drug Coverage Program.²⁴ 24
Subsequent to the enactment of the PRWORA, the list of entities that can receive NDNH data has Subsequent to the enactment of the PRWORA, the list of entities that can receive NDNH data has
been expanded to include, inbeen expanded to include, in
• 1999, the Secretary of Education (to collect student loan debt or grant 1999, the Secretary of Education (to collect student loan debt or grant
overpayments, and to conduct analyses of student loan defaults);overpayments, and to conduct analyses of student loan defaults);

24 For further information, see SSA matching agreements 1074, 1098, and 1306, https://www.ssa.gov/privacy/
computer_matching_programs.html.
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• 2004, the Secretary of HUD (for employment and income verification for certain 2004, the Secretary of HUD (for employment and income verification for certain
HUD housing programs, and to conduct analyses of the employment and income HUD housing programs, and to conduct analyses of the employment and income
reporting);reporting);
• 2004, SWAs (to administer a UI program)2004, SWAs (to administer a UI program)25;
• ;²⁵ 2006, State SNAP Agencies (to administer a SNAP program)2006, State SNAP Agencies (to administer a SNAP program)26;
• ;²⁶ 2008, the Secretary of the Treasury (to collect delinquent nontax debt owed to the 2008, the Secretary of the Treasury (to collect delinquent nontax debt owed to the
federal government under specified circumstances);federal government under specified circumstances);
• 2008, State Child and Family Services (Title IV-B) Agencies and State Foster 2008, State Child and Family Services (Title IV-B) Agencies and State Foster
Care and Adoption Assistance (Title IV-E) Agencies (to carry out state Care and Adoption Assistance (Title IV-E) Agencies (to carry out state
responsibilities under these titles);responsibilities under these titles);
• 2009, state Medicaid and Children2009, state Medicaid and Children’'s Health Insurance Programs (to permit state s Health Insurance Programs (to permit state
programs that meet certain criteria to receive data from the NDNH for the programs that meet certain criteria to receive data from the NDNH for the
purposes of determining eligibility and benefit amounts);purposes of determining eligibility and benefit amounts);
• 2017, GAO (to discharge the duties of the Comptroller General under 31 U.S.C. 2017, GAO (to discharge the duties of the Comptroller General under 31 U.S.C.
§716); and§716); and
• 2018, the Secretary of Agriculture (for income and employment verification for 2018, the Secretary of Agriculture (for income and employment verification for
certain USDA housing programs, and to conduct analyses of the employment and certain USDA housing programs, and to conduct analyses of the employment and
income reporting).income reporting).
Readers should note that NDNH data that Readers should note that NDNH data that aremay be used by HHS, ED, HUD, and USDA to conduct used by HHS, ED, HUD, and USDA to conduct
research or analyses of certain topics (as authorized under the Social Security Act) generally research or analyses of certain topics (as authorized under the Social Security Act) generally does
do not contain personal identifiers.not contain personal identifiers.²⁷ 27
In addition to the above authorities, the Secretary of Veterans Affairs (VA) has previously been In addition to the above authorities, the Secretary of Veterans Affairs (VA) has previously been
required during two separate time periods to provide the HHS Secretary with information for required during two separate time periods to provide the HHS Secretary with information for
comparison with the NDNH to determine eligibility for certain veteranscomparison with the NDNH to determine eligibility for certain veterans’' benefits and services. benefits and services.28
28 The original matching requirements under P.L. 110-157 (enacted December 26, 2007) were to The original matching requirements under P.L. 110-157 (enacted December 26, 2007) were to
terminate September 30, 2011, but were subsequently extended through November 18, 2011 (P.L. terminate September 30, 2011, but were subsequently extended through November 18, 2011 (P.L.
112-37, enacted on October 5, 2011). During the period from November 19, 2011, through 112-37, enacted on October 5, 2011). During the period from November 19, 2011, through
September 29, 2013, the requirements were not in effect. The matching requirements were again September 29, 2013, the requirements were not in effect. The matching requirements were again
effective on September 30, 2013, and for 180 days thereafter (P.L. 113-37, enacted September 30, effective on September 30, 2013, and for 180 days thereafter (P.L. 113-37, enacted September 30,
2013), but have not been since that time. According to GAO, the VA and OCSE never reached an

25 Although SWAs already have access to the quarterly wage and UI data elements, SWAs require the new hires data
element for UI program administration purposes so UI claimants who are employed/reemployed do not receive UI
benefits.
26 The original authority referenced the “Food Stamp” program. P.L. 110-246 changed program references to the
“Supplemental Nutrition Assistance Program” (SNAP). P.L. 113-79 required all state SNAP agencies (rather than
giving them the option) to data-match with the NDNH at the time of SNAP certification for the purposes of
determining eligibility to receive SNAP benefits and determining the correct amount of those benefits. For further
information about SNAP data matching with the NDNH, see CRS Report R45147, Errors and Fraud in the
Supplemental Nutrition Assistance Program (SNAP).
27 See HHS, ACF, OCSE, “A Guide to the National Directory of New Hires,” pp. 4-5.
28 See Social Security Act §453(j)(11). For background on how the VA anticipated that the requirement to match data
with the NDNH might overlap with existing income-verification processes, see the testimony of Daniel L Cooper,
Under Secretary for Benefits, U.S. Department of Veterans Affairs, before the Senate Committee on Veterans’ Affairs,
May 9, 2007, https://www.veterans.senate.gov/services/files/14537789-78D6-40A6-B2E1-B5E607E4809D.
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2013), but have not been since that time. According to GAO, the VA and OCSE never reached an agreement, reportedly due to agreement, reportedly due to “"limited financial and workforce resources,limited financial and workforce resources,”" that allowed for data that allowed for data
sharing outside of either of the time periods when the matching requirements were in effect.sharing outside of either of the time periods when the matching requirements were in effect.29
29 Had the data been shared, they would not have contained personal identifiers.³⁰ Selected Policy Issues
The policy issues historically associated with the NDNH generally can be divided into three The policy issues historically associated with the NDNH generally can be divided into three
categories: the use of NDNH data for program integrity and research, privacy and data security, categories: the use of NDNH data for program integrity and research, privacy and data security,
and workers outside the scope of the system (i.e., non-wage workers). These issues are briefly and workers outside the scope of the system (i.e., non-wage workers). These issues are briefly
summarized below.summarized below.
Use of NDNH Data for Program Integrity and Research
The federal government and states administer numerous benefit programs that provide aid to The federal government and states administer numerous benefit programs that provide aid to
persons with limited income. As discussed above, some of these programs have been given persons with limited income. As discussed above, some of these programs have been given
statutory authority to use NDNH data for the purposes of improving program integrity or statutory authority to use NDNH data for the purposes of improving program integrity or
conducting policy research related to those programs (seeconducting policy research related to those programs (see “ "Entities That May Receive NDNH
Data” Data" for a list of these authorities). Although some observers have argued that these authorities for a list of these authorities). Although some observers have argued that these authorities
should be expanded to additional programs and purposes, others are concerned that some of the should be expanded to additional programs and purposes, others are concerned that some of the
strict limitations on access hamper the effective use of these data.strict limitations on access hamper the effective use of these data.
Program Integrity
Many programs that have piloted or fully implemented the use of NDNH data to prevent Many programs that have piloted or fully implemented the use of NDNH data to prevent
improper payments have reported significant savings as a result.improper payments have reported significant savings as a result.3031 For example, with regard to the For example, with regard to the
UI program, one leading source of UI improper payments is UI program, one leading source of UI improper payments is benefit year earnings, which happen , which happen
when claimants continue to claim UI benefits after they return to work, or do not correctly report when claimants continue to claim UI benefits after they return to work, or do not correctly report
earnings for a week when they are claiming UI benefits.earnings for a week when they are claiming UI benefits.3132 NDNH data matching is a tool that can NDNH data matching is a tool that can
identify benefit year earnings and, thus, reduce UI improper payments. For FY2005, an NDNH identify benefit year earnings and, thus, reduce UI improper payments. For FY2005, an NDNH
pilot initiated by the pilot initiated by the DOLDepartment of Labor (DOL) for UI programs in three states found that for UI programs in three states found that “"using the national cross-using the national cross-
match along with the statewide cross-match helped detect 50 percent more cases of potential match along with the statewide cross-match helped detect 50 percent more cases of potential
fraud in one quarter than it would have detected otherwise.fraud in one quarter than it would have detected otherwise.”32"³³ In addition, with regard to SSA- In addition, with regard to SSA-
administered programs, SSA estimated in FY2015 that the use of NDNH data (at a cost of about administered programs, SSA estimated in FY2015 that the use of NDNH data (at a cost of about
$175 million) for program integrity purposes associated with the SSI, DI, and Ticket programs $175 million) for program integrity purposes associated with the SSI, DI, and Ticket programs
resulted in program savings of about $923 million.resulted in program savings of about $923 million.33
34 The question of who should have access to NDNH data, and for what purposes, has been debated The question of who should have access to NDNH data, and for what purposes, has been debated
since the databasesince the database’'s inception. Presidents inception. President’'s budget submissions from the past few s budget submissions from the past few administrations
Administrations have proposed changes that would increase the use of or access to the NDNH. (Seehave proposed changes that would increase the use of or access to the NDNH. (See Appendix for

29 U.S. Government Accountability Office (GAO), Veterans Disability Benefits: VA Can Better Ensure
Unemployability Decisions Are Well Supported, GAO-15-464, June 2015, p. 23, https://www.gao.gov/assets/680/
670592.pdf.
30 See, for example, the discussion of the use of NDNH data to locate TANF recipient workers with unreported income,
Wade F. Horn, Assistant Secretary for Children and Families, U.S. Department of Health and Human Services,
Testimony before the Human Resources Subcommittee, July 14, 2005, https://www.acf.hhs.gov/olab/resource/wade-f-
horn-on-ndnh-and-tanf.
31 See DOL, Office of Inspector General (OIG), “U.S. Department of Labor’s Top Management and Performance
Challenges,” November 2023, p. 3, https://www.oig.dol.gov/public/
DOL%202023%20Top%20Management%20and%20Performance%20Challenges.pdf.
32 GAO, Improper Payments: Federal and State Coordination Needed to Report National Improper Payment Estimates
on Federal Programs, GAO-06-347, April 2006, p. 59, https://www.gao.gov/assets/250/249728.pdf.
33 See SSA-OCSE Quarterly Match Agreement 1704, p. 46, https://www.hhs.gov/sites/default/files/cma-1704.pdf.
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for examples of these.) These proposals have included a statutory requirement that states must use examples of these.) These proposals have included a statutory requirement that states must use
NDNH to ensure that UI claimants have not returned to NDNH to ensure that UI claimants have not returned to work34work³⁵ as part of a suite of UI program as part of a suite of UI program
integrity changes.integrity changes.3536 Some, however, have raised concerns that programs that might more Some, however, have raised concerns that programs that might more
effectively detect improper payments through the use of NDNH data lack the computer capacity effectively detect improper payments through the use of NDNH data lack the computer capacity
or capability to use that type of automated system.or capability to use that type of automated system.3637 Agencies and programs that are administered Agencies and programs that are administered
at the local level might have a limited or nonexistent ability to exchange data regularly with at the local level might have a limited or nonexistent ability to exchange data regularly with
OCSS. Moreover, many of the privacy protections and strict security requirements tied to the OCSS. Moreover, many of the privacy protections and strict security requirements tied to the
NDNH may be administratively burdensome for such agencies.NDNH may be administratively burdensome for such agencies.
Research
NDNH data also have been used by policy researchers to help determine the effectiveness of new NDNH data also have been used by policy researchers to help determine the effectiveness of new
or existing programs. For example, NDNH wage data were used in a 2018 study commissioned or existing programs. For example, NDNH wage data were used in a 2018 study commissioned
by HHS to examine whether youths who had participated in the Year Up workforce program by HHS to examine whether youths who had participated in the Year Up workforce program
experienced increased earnings over a 12-quarter period.experienced increased earnings over a 12-quarter period.3738 Recent President Recent President’'s budgets also have s budgets also have
proposed that the ability to use these data for research be expanded. (proposed that the ability to use these data for research be expanded. (SeeSee Appendix for examples for examples
of these.) Some observers, however, have noted that the usefulness of NDNH data for research is of these.) Some observers, however, have noted that the usefulness of NDNH data for research is
limited by its data deletion and de-identification requirements. For examplelimited by its data deletion and de-identification requirements. For example:
A one or two year time span provides a relatively limited window for observing earnings A one or two year time span provides a relatively limited window for observing earnings
before, during, and after the time of program participation. Data of particular interest may before, during, and after the time of program participation. Data of particular interest may
have already been deleted before a research agreement can be reached. In the absence of have already been deleted before a research agreement can be reached. In the absence of
identifiers, it is impossible for researchers to incorporate additional years or sources of
identifiers, it is impossible for researchers to incorporate additional years or sources of administrative data into their research sample or correct problems with prior linkages once administrative data into their research sample or correct problems with prior linkages once
the de-identified file with NDNH data has been returned. While it is possible to construct the de-identified file with NDNH data has been returned. While it is possible to construct
a longitudinal research sample in the future, this requires greater involvement by OCSE a longitudinal research sample in the future, this requires greater involvement by OCSE
(since only OCSE has access to the identifiers needed to continue updating the earnings (since only OCSE has access to the identifiers needed to continue updating the earnings
data), increasing the cost and complexity of the project.38

34 Although this is currently required in DOL program guidance, there is no statutory requirement for states to use
NDNH (or several other related data cross matches). See DOL, Employment and Training Administration (ETA),
“National Effort to Reduce Improper Payments in the Unemployment Insurance (UI) Program,” UIPL No. 19-11, June
10, 2011, https://wdr.doleta.gov/directives/attach/UIPL/UIPL19-11.pdf; and DOL, ETA, “National Directory of New
Hires (NDNH) and State Directory of New Hires (SDNH) Guidance and Best Practices,” UIPL No. 13-19, June 17,
2019, https://wdr.doleta.gov/directives/attach/UIPL/UIPL_13-19.pdf.
35 Similar proposals also have been made by the DOL OIG (See DOL OIG, “OIG Oversight of the Unemployment
Insurance Program,” https://www.oig.dol.gov/doloiguioversightwork.htm#recm) and have been included in several
pieces of legislation. (For example, in the 117th Congress, see S. 1699, S. 4507, H.R. 3268, H.R. 8000, and H.R. 8661.
For additional information on UI program integrity bills introduced in the 117th Congress, see CRS Report R46789,
Unemployment Insurance: Legislative Issues in the 117th Congress, First Session; and CRS Report R47393,
Unemployment Insurance: Legislative Issues in the 117th Congress, Second Session. Additionally, in the 111th
Congress, the House Engrossed Amendment of H.R. 4899 included a statutory requirement for states to use NDNH
data matching; however, the version of this bill that was enacted into law as P.L. 111-212 did not include this NDNH
provision.)
36 See, for example, the findings with regard to SWA utilization of the NDNH in Department of Labor, Office of
Inspector General—Office of Audit, Improved Oversight of States’ Use of New Hire Tools Would Help Reduce
Improper Payments, report to the Employment and Training Administration, September 27, 2018, 04-18-003-03-315,
https://www.oig.dol.gov/public/reports/oa/2018/04-18-003-03-315.pdf.
37 David Fein and Jill Hamadyk, Bridging the Opportunity Divide for Low-Income Youth: Implementation and Early
Impacts of the Year Up Program, HHS, ACF, Office of Planning, Research, and Evaluation, Report #2018-65
(Washington, DC: Office of Planning, Research, and Evaluation, May 2018), https://www.acf.hhs.gov/sites/default/
files/documents/opre/pace_8_year_up_narrative_6_1_18_508.pdf.
38 Christin Durham and Laura Wheaton, Investigating Alternative Sources of Quarterly Wage Data: An Overview of the
NDNH, LEHD, WRIS, and ADARE, Urban Institute, October 18, 2012, p. 3, http://www.urban.org/sites/default/files/
(continued...)
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Privacy and Data Security
data), increasing the cost and complexity of the project.³⁹ Privacy and Data Security The sensitivity of the information contained in the NDNH—personal and financial data on The sensitivity of the information contained in the NDNH—personal and financial data on
millions of working Americans, as well as those receiving UI benefits—necessitates that millions of working Americans, as well as those receiving UI benefits—necessitates that
precautions be taken with regard to the security of the system.precautions be taken with regard to the security of the system.3940 Access to the NDNH system Access to the NDNH system
(housed at a secure SSA facility) is limited to authorized personnel. In addition, according to the (housed at a secure SSA facility) is limited to authorized personnel. In addition, according to the
OCSEOCSS Guide to the National Directory of New Hires, recipients of NDNH information must , recipients of NDNH information must
agree to comply with security safeguards, such asagree to comply with security safeguards, such as:
Operational safeguards that ensure NDNH information is secure from unauthorized entities Operational safeguards that ensure NDNH information is secure from unauthorized entities
and unauthorized uses at all times;and unauthorized uses at all times;
Technical safeguards that ensure NDNH information is processed, stored, and transmitted Technical safeguards that ensure NDNH information is processed, stored, and transmitted
in a secure manner and that information is processed using methods that protect the
in a secure manner and that information is processed using methods that protect the confidentiality and integrity of the information; andconfidentiality and integrity of the information; and
Management safeguards that are tailored to the information system environment and
require written security agreements, policies, and procedures which must Management safeguards that are tailored to the information system environment and require written security agreements, policies, and procedures which must include: include:
notification to notification to OCSEOCSS of any breach of NDNH information, and of any breach of NDNH information, and a provision that provision that OCSEOCSS has the right to request a site visit or assessment to ensure compliance with has
the right to request a site visit or assessment to ensure compliance with security security
requirements.requirements.40
41 In addition to requirements related to the security of the NDNH data while they are in the system In addition to requirements related to the security of the NDNH data while they are in the system
or shared outside OCSS, the Social Security Act includes provisions that require the removal or or shared outside OCSS, the Social Security Act includes provisions that require the removal or
deletion of certain information in the NDNH after specified time periods (see deletion of certain information in the NDNH after specified time periods (see the “Data Deletion”
section).
the "Data Deletion" section). Nevertheless, the size and scope of the NDNH has caused some to be concerned that individual Nevertheless, the size and scope of the NDNH has caused some to be concerned that individual
privacy protections might be insufficient and that the type of data that are gathered might privacy protections might be insufficient and that the type of data that are gathered might
gradually be expanded.gradually be expanded.4142 Some have observed that, as an increasing number of federal and state Some have observed that, as an increasing number of federal and state
programs have obtained access to the system, wider access to and use of NDNH data could programs have obtained access to the system, wider access to and use of NDNH data could
potentially lead to privacy and confidentiality breaches, financial fraud, identity theft, or other potentially lead to privacy and confidentiality breaches, financial fraud, identity theft, or other
crimes.crimes.4243 Others have expressed related apprehensions that allowing NDNH data to be shared Others have expressed related apprehensions that allowing NDNH data to be shared
with a variety of federal programs could lead to new reporting requirements that are not necessary with a variety of federal programs could lead to new reporting requirements that are not necessary
to carry out the core to carry out the core CSECSS mission of the system. mission of the system.4344 Those new requirements could be difficult or Those new requirements could be difficult or

publication/25971/412688-Investigating-Alternative-Sources-of-Quarterly-Wage-Data-An-Overview-of-the-NDNH-
LEHD-WRIS-and-ADARE.PDF.
39 The NDNH is subject to security and privacy requirements under Sections 453(l) and (m) of the Social Security Act.
It also is considered to be a system of records under the Privacy Act, and thus is subject to the requirements under that
act for administrative, technical, and physical safeguards for both the records matched and any results of those matches
(see 5 U.S.C. 552a).
40 HHS, ACF, OCSE, A Guide to the National Directory of New Hires, p. 8. See also HHS, ACF, OCSE, Accuracy of
Data Maintained by the National Directory of New Hires and the Effectiveness of Security Procedures, Report to the
House of Representatives Committee on Ways and Means and Senate Committee on Finance, July 31, 2002.
41 See, for example, Cato Institute, “‘Deadbeat Dad’ Database Endangers Everyone,” by Doug Bandow, April 30, 1998,
https://www.cato.org/publications/commentary/deadbeat-dad-database-endangers-everyone.
42 GAO, National Sex Offender Registry: New Hires Data Has Potential for Updating Addresses of Convicted Sex
Offenders, GAO-06-766, July 2006, p. 26, https://www.gao.gov/products/GAO-06-766. See also U.S. Department of
the Treasury, Inspector General for Tax Administration, Hearing before the House Committee on Oversight and
Government Reform, Subcommittee on Government Organization, Efficiency, and Financial Management, Problems at
the Internal Revenue Service: Closing the Tax Gap and Preventing Identity Theft, Testimony of the Honorable J.
Russell George, Treasury Inspector General for Tax Administration, April 19, 2012, https://www.treasury.gov/tigta/
congress/congress_04192012.pdf.
43 See, for example, the proposal to expand access to and the data collected by the NDNH in Center for Law and Social
(continued...)
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costly to implement at the state and employer levels, and might cause additional burdens on costly to implement at the state and employer levels, and might cause additional burdens on
employers that lead to reduced reporting.employers that lead to reduced reporting.44
45 Non-wageWage Workers
As a child support tool, the NDNH can be used to locate noncustodial parents and identify wages As a child support tool, the NDNH can be used to locate noncustodial parents and identify wages
that could be subject to income withholding. (As previously mentioned, about three-quarters of that could be subject to income withholding. (As previously mentioned, about three-quarters of
child support is collected by the child support is collected by the CSECSS program via income withholding. program via income withholding.45)
46) With regard to non-wage employment, the NDNH generally does not gather information on self-With regard to non-wage employment, the NDNH generally does not gather information on self-
employed workers (e.g., independent contractors), which are a growing proportion of the working employed workers (e.g., independent contractors), which are a growing proportion of the working
adult population, according to various estimates.adult population, according to various estimates.4647 However, recent President However, recent President’'s budgets have s budgets have
proposed requiring that self-employed workers be reported to the SDNH for inclusion in the proposed requiring that self-employed workers be reported to the SDNH for inclusion in the
NDNH.NDNH.4748 A 2019 study identified 16 states that require employers to report the income of A 2019 study identified 16 states that require employers to report the income of
independent contractors in some form (in many cases, to the SDNH).independent contractors in some form (in many cases, to the SDNH).4849 That study also found low That study also found low
employer compliance with those reporting requirements, and that it was employer compliance with those reporting requirements, and that it was “"virtually impossiblevirtually impossible”" to to
successfully withhold child support from one-time payments to non-wage workers.successfully withhold child support from one-time payments to non-wage workers.49
50 Nevertheless, the CSE staff interviewed for the study felt that independent contractor reporting Nevertheless, the CSE staff interviewed for the study felt that independent contractor reporting
could improve certain outcomes, such as when that reporting enabled them to locate those parents could improve certain outcomes, such as when that reporting enabled them to locate those parents
or attach income withholding orders to regular payments.50

Policy, CLASP Comments on a Proposed Postsecondary Institution Rating System, Submitted to the U.S. Department
of Education, January 31, 2014. p. 5, http://www.clasp.org/resources-and-publications/publication-1/CLASP-
Comments-on-PIRS-2-4.pdf.
44 Vicki Turetsky, Preserve the Child Support System: Don’t Let the New Hire Database Be Hijacked for Immigrant
Employment Verification, Center for Law and Social Policy, May 6, 2008; National Women’s Law Center, Impact of
the New Employee Verification Act (HR 5515) on Child Support Enforcement, written statement of Joan Entmacher to
the Subcommittee on Social Security, House Committee on Ways and Means, May 8, 2008, https://nwlc.org/wp-
content/uploads/2015/08/NWLConNEVAandChild%20Support.pdf.
45 Ibid., Table P-29.
46 Lawrence F Katz and Alan B. Krueger, “The Rise and Nature of Alternative Work Arrangements in the United
States, 1995–2015,” ILR Review, vol. 72, no. 2 (March 2019), pp. 382-416; and CRS Report R44365, What Does the
Gig Economy Mean for Workers?.
47 See, for example, FY2017 ACF Congressional Justification, p. 308; and FY2021 ACF Congressional Justification, p.
242.
48 These state-level requirements have differing income thresholds and a variety of other qualifying criteria for the
reporting. See Asaph Glosser and Justin Germain, Independent Contractors and Nontraditional Workers: Implications
for the Child Support Program, HHS, Office of the Assistant Secretary for Planning and Evaluation, May 10, 2019,
https://aspe.hhs.gov/system/files/pdf/261736/IndependentWorkersChildSupportProgram.pdf.
49 Ibid., p. 6.
50 Ibid., pp. 7-8. See also National Child Support Enforcement Association, “Resolution Supporting New Hire
Reporting and Income Withholding Changes for Independent Contractors,” August 10, 2019.
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Appendix. or attach income withholding orders to regular payments.⁵¹ Appendix. NDNH Access Proposals in the
President’President's Budget Submission, FY2015-FY2024
FY2025 Table A-1 below lists NDNH access-related proposals that have been included in the Presidentbelow lists NDNH access-related proposals that have been included in the President’s
's budget submissions between FY2015 and budget submissions between FY2015 and FY2024FY2025. An excerpt of each proposal is also included . An excerpt of each proposal is also included
in that table. These examples were identified through searches of the in that table. These examples were identified through searches of the “"Analytical PerspectivesAnalytical Perspectives”
" volume of the Presidentvolume of the President’'s Budget and congressional justifications for the time period.s Budget and congressional justifications for the time period.
At least one NDNH proposal was identified in these source documents each fiscal year since At least one NDNH proposal was identified in these source documents each fiscal year since
FY2015, except for FY2022 and FY2023. Note that, in some cases, items in this table represent FY2015, except for FY2022 and FY2023. Note that, in some cases, items in this table represent
overlapping or duplicative descriptions of proposals across documents. In addition, in some cases, overlapping or duplicative descriptions of proposals across documents. In addition, in some cases,
the documents did not have enough detail to determine which specific entities were within the the documents did not have enough detail to determine which specific entities were within the
scope of the proposal. In such cases, the table indicates that these were for multiple departments scope of the proposal. In such cases, the table indicates that these were for multiple departments
or agencies.




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or agencies. Table A-1. NDNH Access Proposals in the President’'s Budget Submission

FY2015-FY2025

FY

Dept.

Agency

Excerpt of Proposal

2015

HHS

ACF

"FY2015-FY2024
FY
Dept.
Agency
Excerpt of Proposal
2015
HHS
ACF
“The FY 2015 budget re-proposes legislative changes that would reauthorize and modify LIHEAP for five years to increase The FY 2015 budget re-proposes legislative changes that would reauthorize and modify LIHEAP for five years to increase
program oversight and promote program effectiveness by .program oversight and promote program effectiveness by . .. authorizing LIHEAP access to the National Directory of New Hires . authorizing LIHEAP access to the National Directory of New Hires
to detect and prevent program waste, fraud, and abuse.to detect and prevent program waste, fraud, and abuse.”" [HHS, [HHS, FY2015 ACF Congressional Justification, p. 35.], p. 35.]
2015
HHS
ACF
“ 2015

HHS

ACF

"The Budget proposes to narrowly expand access to the National Directory of New Hires Database to assess the effectiveness The Budget proposes to narrowly expand access to the National Directory of New Hires Database to assess the effectiveness
of federal policies and programs in achieving positive labor market outcomes and to provide related demographic or economic of federal policies and programs in achieving positive labor market outcomes and to provide related demographic or economic
statistics. This proposal would allow certain federal agencies a more reliable and affordable way to obtain data essential for statistics. This proposal would allow certain federal agencies a more reliable and affordable way to obtain data essential for
research, evaluation, and statistical purposes while maintaining necessary mandated security, privacy, and confidentiality research, evaluation, and statistical purposes while maintaining necessary mandated security, privacy, and confidentiality
standards.standards.”" [HHS, [HHS, FY2015 ACF Congressional Justification, p. 275.], p. 275.]
2015
Treasury
IRS
“

2015

Treasury

IRS

"The IRS has taken a number of steps under existing law to improve compliance. These efforts would be enhanced by specific The IRS has taken a number of steps under existing law to improve compliance. These efforts would be enhanced by specific
tax administration proposals that would …. Expand the IRS access to information in the National Directory of New Hires for tax administration proposals that would …. Expand the IRS access to information in the National Directory of New Hires for
tax administration purposes ($12 tax administration purposes ($12 mil ion).”million)." [Treasury, [Treasury, FY2015 IRS Congressional Budget Justification, p. IRS-100.], p. IRS-100.]
2015
Treasury
IRS
“

2015

Treasury

IRS

"The Administration proposes to amend the Social Security Act to expand IRS access to the NDNH data for general tax The Administration proposes to amend the Social Security Act to expand IRS access to the NDNH data for general tax
administration purposes, including data matching, verification of taxpayer claims during return processing, preparation of administration purposes, including data matching, verification of taxpayer claims during return processing, preparation of
substitute returns for non-compliant taxpayers, and identification of levy sources.substitute returns for non-compliant taxpayers, and identification of levy sources.”" [ [FY2015 President’s's Budget, , “"Analytical Analytical
Perspectives,Perspectives,”" p. 170.]

2016

Multiple

Multiple

" p. 170.]
2016
Multiple
Multiple
“Consistent with bipartisan Congressional proposals, the Budget would allow select Federal statistical and evaluation units to Consistent with bipartisan Congressional proposals, the Budget would allow select Federal statistical and evaluation units to
access the NDNH for statistical purposes, subject to strong privacy and confidentiality protections. The proposal would allow access the NDNH for statistical purposes, subject to strong privacy and confidentiality protections. The proposal would allow
NDNH data to be used to evaluate Federal job training and other programs intended to increase employment and earnings, as NDNH data to be used to evaluate Federal job training and other programs intended to increase employment and earnings, as
well as to construct job training service provider well as to construct job training service provider “scorecards”"scorecards" based on participant employment and earnings outcomes, based on participant employment and earnings outcomes,
consistent with WIOA and the goals laid out as part of the Administrationconsistent with WIOA and the goals laid out as part of the Administration’'s review of job-training programs. The proposal s review of job-training programs. The proposal
would also permit the use of NDNH data to improve the completeness and efficiency of the Census LEHD program and the would also permit the use of NDNH data to improve the completeness and efficiency of the Census LEHD program and the
2020 decennial census.2020 decennial census.”" [ [FY2016 President's Budget, , “"Analytical Perspectives,Analytical Perspectives,”" p. 70.]

2016

Treasury

IRS

" p. 70.]
2016
Treasury
IRS
“The IRS has taken a number of steps under existing law to improve compliance. These efforts would be enhanced by specific The IRS has taken a number of steps under existing law to improve compliance. These efforts would be enhanced by specific
tax administration proposals that would … Expand the IRS access to information in the National Directory of New Hires for tax tax administration proposals that would … Expand the IRS access to information in the National Directory of New Hires for tax
administration purposes ($12 administration purposes ($12 mil ion).”million)." [Treasury, [Treasury, FY2016 IRS Congressional Budget Justification, p. IRS-114.], p. IRS-114.]
2016
Treasury
IRS
“

2016

Treasury

IRS

"The Administration proposes to amend the Social Security Act to expand IRS access to the NDNH data for general tax The Administration proposes to amend the Social Security Act to expand IRS access to the NDNH data for general tax
administration purposes, including data matching, verification of taxpayer claims during return processing, preparation of administration purposes, including data matching, verification of taxpayer claims during return processing, preparation of
substitute returns for non-compliant taxpayers, and identification of levy sources.substitute returns for non-compliant taxpayers, and identification of levy sources.”" [ [FY2016 President's Budget, , “"Analytical Analytical
Perspectives,Perspectives,”" p. 189.] p. 189.]
CRS-14

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FY
Dept.
Agency
Excerpt of Proposal
2016
DOL
ETA
“

2016

DOL

ETA

"In order to streamline, standardize, and more accurately capture the outcome information essential to supporting high-quality In order to streamline, standardize, and more accurately capture the outcome information essential to supporting high-quality
performance information and evaluations, the Budget proposes to eliminate the ban on developing a national database of performance information and evaluations, the Budget proposes to eliminate the ban on developing a national database of
personally identifiable information for WIOA participants, and grant DOL access to the wage data information held in the personally identifiable information for WIOA participants, and grant DOL access to the wage data information held in the
National Directory of New Hires.National Directory of New Hires.”" [DOL, [DOL, FY2016 ETA Congressional Budget Justification, p. ETA-3.], p. ETA-3.]
2016
Multiple
Multiple
“

2016

Multiple

Multiple

"Consistent with bipartisan Congressional proposals, the Budget would allow select Federal statistical and evaluation units to Consistent with bipartisan Congressional proposals, the Budget would allow select Federal statistical and evaluation units to
access the NDNH for statistical purposes, subject to strong privacy and confidentiality protections. The proposal would allow access the NDNH for statistical purposes, subject to strong privacy and confidentiality protections. The proposal would allow
NDNH data to be used to evaluate Federal job training and other programs intended to increase employment and earnings, as NDNH data to be used to evaluate Federal job training and other programs intended to increase employment and earnings, as
well as to construct job training service provider well as to construct job training service provider “scorecards”"scorecards" based on participant employment and earnings outcomes, based on participant employment and earnings outcomes,
consistent with WIOA and the goals laid out as part of the Administrationconsistent with WIOA and the goals laid out as part of the Administration’'s review of job-training programs. The proposal s review of job-training programs. The proposal
would also permit the use of NDNH data to improve the completeness and efficiency of the Census LEHD program and the would also permit the use of NDNH data to improve the completeness and efficiency of the Census LEHD program and the
2020 decennial census.2020 decennial census.”" [ [FY2016 President's Budget, , “"Analytical Perspectives,Analytical Perspectives,”" pp. 81-82.] pp. 81-82.]
2016
Multiple
Multiple
“

2016

Multiple

Multiple

"The Budget proposes to narrowly expand access to the National Directory of New Hires Database. This proposal enables the The Budget proposes to narrowly expand access to the National Directory of New Hires Database. This proposal enables the
Census Bureau access to these data in time to incorporate the data in its efforts to reduce the need to conduct in-person Census Bureau access to these data in time to incorporate the data in its efforts to reduce the need to conduct in-person fol ow
follow up interviews with non-responding households. This proposal would also allow several agencies a more reliable and affordable up interviews with non-responding households. This proposal would also allow several agencies a more reliable and affordable
way obtain data essential for research, evaluation, and statistical purposes while maintaining necessary security, privacy, and way obtain data essential for research, evaluation, and statistical purposes while maintaining necessary security, privacy, and
confidentiality standards.confidentiality standards.”" [Commerce, [Commerce, FY2016 U.S. Census Bureau Budget Estimates, p. CEN-84.], p. CEN-84.]
2017
Multiple
Multiple
“

2017

Multiple

Multiple

"In order to streamline access to the data by authorized agencies for program integrity purposes, the package includes a In order to streamline access to the data by authorized agencies for program integrity purposes, the package includes a
proposal which would allow the authorized agencies to access the NDNH data through the Do Not Pay Business Center at the proposal which would allow the authorized agencies to access the NDNH data through the Do Not Pay Business Center at the
Department of the Treasury.Department of the Treasury.”" [ [FY2017 President's Budget, , “"Analytical Perspectives,Analytical Perspectives,”" p. 75.]

2017

Multiple

Multiple

" p. 75.]
2017
Multiple
Multiple
“The 2017 Budget includes a package of proposals to allow certain additional programs and agencies authority to access the The 2017 Budget includes a package of proposals to allow certain additional programs and agencies authority to access the
National Directory of New Hire data …National Directory of New Hire data …
Program Integrity ProposalsProgram Integrity Proposals
•
Treasury/DNP: Allow TreasuryTreasury/DNP: Allow Treasury’'s Do Not Pay (DNP) system to serve as a pass-through between NDNH and agency s Do Not Pay (DNP) system to serve as a pass-through between NDNH and agency
programs authorized NDNH access for improper payment purposes.programs authorized NDNH access for improper payment purposes.
•
HHS/CMS: Assist with income and employer verification and improve the ACA advance premium tax credit payment HHS/CMS: Assist with income and employer verification and improve the ACA advance premium tax credit payment
accuracy to reduce improper payments.accuracy to reduce improper payments.
•
USDA/Rural Housing Service: Verify eligibility and validate the income source information provided by means-tested single USDA/Rural Housing Service: Verify eligibility and validate the income source information provided by means-tested single
family housing loan applicants and multifamily housing project-based tenants.family housing loan applicants and multifamily housing project-based tenants.
•
Railroad Retirement Board: Establish eligibility for processing disability benefits in a more efficient manner. DOL/UI: Require Railroad Retirement Board: Establish eligibility for processing disability benefits in a more efficient manner. DOL/UI: Require
(rather than permit) states to cross-match with NDNH to identify improper payments.(rather than permit) states to cross-match with NDNH to identify improper payments.
CRS-15

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FY
Dept.
Agency
Excerpt of Proposal
Evaluation/Statistical/Program Administration ProposalsEvaluation/Statistical/Program Administration Proposals
•
Multi/Statistical and Evaluation Access: Access to NDNH for specified federal statistical agencies, units, and evaluation Multi/Statistical and Evaluation Access: Access to NDNH for specified federal statistical agencies, units, and evaluation
offices or their designees for statistical, research, evaluation, and performance measurement purposes associated with offices or their designees for statistical, research, evaluation, and performance measurement purposes associated with
assessing positive labor market outcomes.assessing positive labor market outcomes.
•
Workforce Programs: Provide access for program administration, including federal oversight and evaluation, and authorize Workforce Programs: Provide access for program administration, including federal oversight and evaluation, and authorize
data exchanges between state child support and workforce agencies.data exchanges between state child support and workforce agencies.”
" [HHS, [HHS, ACF Congressional Justification, pp. 303-304.], pp. 303-304.]
2017
HHS
CMS
“

2017

HHS

CMS

"The Budget would provide CMS with access to the National Directory of New Hires, a database maintained by the The Budget would provide CMS with access to the National Directory of New Hires, a database maintained by the
Administration for Children and Families, to assist with the eligibility determination and verification process for financial Administration for Children and Families, to assist with the eligibility determination and verification process for financial
assistance in the Marketplace.assistance in the Marketplace.”" [HHS, [HHS, FY2017 CMS Congressional Justification, p. 80,], p. 80,]
2017
Treasury
FS
“

2017

Treasury

FS

"Option to access the National Directory of New Hire Data via the Do Not Pay Portal.Option to access the National Directory of New Hire Data via the Do Not Pay Portal.”" [Treasury, [Treasury, FY2017 Fiscal Service
Congressional Budget Justification, p. FS-14.], p. FS-14.]
2017
Treasury
FS
“

2017

Treasury

FS

"The Budget also proposes to allow programs that are statutorily authorized to access HHSThe Budget also proposes to allow programs that are statutorily authorized to access HHS’'s National Directory of New Hires s National Directory of New Hires
data the option to do so via the Do Not Pay system at Treasury, providing them a centralized portal of information.data the option to do so via the Do Not Pay system at Treasury, providing them a centralized portal of information.”" [ [FY2017
President's Budget, , “"Analytical Perspectives,Analytical Perspectives,”" p. 136.]

2017

DOL

ETA

" p. 136.]
2017
DOL
ETA
“A comprehensive integrity legislative package designed to provide states with new tools and resources to combat UI fraud and A comprehensive integrity legislative package designed to provide states with new tools and resources to combat UI fraud and
improper payments. The package includes the improper payments. The package includes the fol owingfollowing components … Requires National Directory of New Hires (NDNH) components … Requires National Directory of New Hires (NDNH)
cross-matching for benefit payment control (BPC) and requires states to provide monetary penalties for employers that fail to cross-matching for benefit payment control (BPC) and requires states to provide monetary penalties for employers that fail to
report. Current law only permits states to provide penalties not to exceed $25 for failure to comply and not to exceed $500 for report. Current law only permits states to provide penalties not to exceed $25 for failure to comply and not to exceed $500 for
fraud. The fraud. The bil bill requires penalties of not less than $25 for failure to comply and not less than $500 for fraud.requires penalties of not less than $25 for failure to comply and not less than $500 for fraud.”" [DOL, [DOL, FY2017 ETA
Congressional Budget Justification, p. SUISO-18.], p. SUISO-18.]
2017
DOL
ETA
“

2017

DOL

ETA

"Included in this package are proposals to: ..Included in this package are proposals to: ... mandate the use of the National Directory of New Hires to conduct cross-matches mandate the use of the National Directory of New Hires to conduct cross-matches
for program integrity purposes [relates to UI].for program integrity purposes [relates to UI].”" [ [FY2017 President's Budget, , “"Analytical Perspectives,Analytical Perspectives,”" p. 133.]

2017

Education

CTAE

" p. 133.]
2017
Education
CTAE
“Included in the PresidentIncluded in the President’'s budget request for the Department of Health and Human Services (HHS) is a proposal to allow s budget request for the Department of Health and Human Services (HHS) is a proposal to allow
other agencies and their State partners access to the National Directory of New Hires, a Federal database of employment and other agencies and their State partners access to the National Directory of New Hires, a Federal database of employment and
unemployment insurance information administered by the Office of Child Support Enforcement within HHS. This resource, unemployment insurance information administered by the Office of Child Support Enforcement within HHS. This resource,
which would be utilized at the sole discretion and option of a State, would provide States with an additional data collection tool which would be utilized at the sole discretion and option of a State, would provide States with an additional data collection tool
to determine employment and wage outcomes across State lines for the purpose of reporting program performance under to determine employment and wage outcomes across State lines for the purpose of reporting program performance under
WIOA.WIOA.”" [DOL, [DOL, FY2017 CTAE Congressional Budget Justification, p. M-37.], p. M-37.]
CRS-16

---

FY
Dept.
Agency
Excerpt of Proposal
2017
USDA
RHS
“

2017

USDA

RHS

"The 2017 Budget includes a package of proposals to allow additional programs and agencies authority to access the National The 2017 Budget includes a package of proposals to allow additional programs and agencies authority to access the National
Directory of New Hire Data ... Because the primary cause for improper payments is related to information received from Directory of New Hire Data ... Because the primary cause for improper payments is related to information received from
applicants and borrowers which RD [Rural Development Housing Programs] cannot verify by an independent source, the agency applicants and borrowers which RD [Rural Development Housing Programs] cannot verify by an independent source, the agency
needs access to updated and reliable data sources to effectively manage its programs.needs access to updated and reliable data sources to effectively manage its programs.”" [USDA, [USDA, FY2017 Congressional Budget
Justification Explanatory Notes: Rural Housing Service, p. 29-35.], p. 29-35.]
2017
Commerce
Census
“

2017

Commerce

Census

"The Census Bureau is working with the appropriate committees to narrowly expand access to the National Directory of New The Census Bureau is working with the appropriate committees to narrowly expand access to the National Directory of New
Hires Database (NDNH). This proposal enables the Census Bureau access to these data in time to incorporate the data in its Hires Database (NDNH). This proposal enables the Census Bureau access to these data in time to incorporate the data in its
efforts to reduce the need to conduct in-person efforts to reduce the need to conduct in-person fol owfollow up interviews with non-responding households. up interviews with non-responding households.”" [Commerce, [Commerce, FY2017
U.S. Census Bureau's Budget, p. 92.], p. 92.]
2018
RRB
NA
“

2018

RRB

NA

"Amend the Social Security Act to provide access for the Railroad Retirement Board to the National Directory of New Hires Amend the Social Security Act to provide access for the Railroad Retirement Board to the National Directory of New Hires
and to waive the customary fees for the RRB.and to waive the customary fees for the RRB.”" [RRB, [RRB, FY2018 Justification of Budget Estimates, p. 68.], p. 68.]
2018
DOL
ETA
“This proposal wil

2018

DOL

ETA

"This proposal will require state UI agencies to use the National Directory for New Hires to better identify individuals require state UI agencies to use the National Directory for New Hires to better identify individuals
continuing to claim unemployment compensation after returning to work, which is one of the leading root causes of UI continuing to claim unemployment compensation after returning to work, which is one of the leading root causes of UI
improper payments.improper payments.”" [DOL, [DOL, FY2018 ETA Congressional Budget Justification, SUISO-15.], SUISO-15.]
2018
DOL
ETA
“

2018

DOL

ETA

"The Budget includes proposals aimed at improving integrity in the Unemployment Insurance (UI) program…. Included in this The Budget includes proposals aimed at improving integrity in the Unemployment Insurance (UI) program…. Included in this
package are proposals to: ..package are proposals to: ... mandate the use of the National Directory of New Hires to conduct cross-matches for program mandate the use of the National Directory of New Hires to conduct cross-matches for program
integrity purposes.integrity purposes.”" [ [FY2018 President's Budget, , “"Analytical Perspectives,Analytical Perspectives,”" p. 101.]

2019

Treasury

FS

" p. 101.]
2019
Treasury
FS
“This proposal seeks an expansion of Treasury's authority to access the National Directory of New Hires (NDNH) to prevent, This proposal seeks an expansion of Treasury's authority to access the National Directory of New Hires (NDNH) to prevent,
identify and recover improper payments. For the purpose of eliminating waste, fraud, and abuse in Federal programs and identify and recover improper payments. For the purpose of eliminating waste, fraud, and abuse in Federal programs and
preventing improper payments, agencies must review pre-payment and pre-award procedures and review available databases preventing improper payments, agencies must review pre-payment and pre-award procedures and review available databases
with relevant information on eligibility prior to the release of Federal funds.with relevant information on eligibility prior to the release of Federal funds.”" [Treasury, [Treasury, FY2019 Fiscal Service Congressional Budget
Justification, p. Fiscal Service-10.], p. Fiscal Service-10.]
2019
RRB
NA
“

2019

RRB

NA

"Amend the Social Security Act to provide access for the Railroad Retirement Board to the National Directory of New Hires Amend the Social Security Act to provide access for the Railroad Retirement Board to the National Directory of New Hires
and to waive the customary fees for the RRB.and to waive the customary fees for the RRB.”" [RRB, [RRB, FY2019 Justification of Budget Estimates, p. 71.], p. 71.]
CRS-17

---

FY
Dept.
Agency
Excerpt of Proposal
2019
Multiple
Multiple
“

2019

Multiple

Multiple

"The Budget proposal includes statutory access to NDNH for units within Federal agencies that conduct research, statistical The Budget proposal includes statutory access to NDNH for units within Federal agencies that conduct research, statistical
activities, evaluation, and/or performance measurement that would otherwise require costly surveys, state-by-state memoranda activities, evaluation, and/or performance measurement that would otherwise require costly surveys, state-by-state memoranda
of understanding, or other agreements to obtain the same data contained in NDNH. For example, the proposal would enable of understanding, or other agreements to obtain the same data contained in NDNH. For example, the proposal would enable
DOL and ED to use NDNH data to conduct program evaluations of employment and training programs. The proposal would DOL and ED to use NDNH data to conduct program evaluations of employment and training programs. The proposal would
also enable data linkages across states and programs, with strict privacy and security safeguards in place.also enable data linkages across states and programs, with strict privacy and security safeguards in place.
The NDNH access proposals also include good government provisions to enable efficiencies for program integrity and eligibility The NDNH access proposals also include good government provisions to enable efficiencies for program integrity and eligibility
verification, while ensuring data privacy and security. The Budget proposals would enable the Department of the Treasuryverification, while ensuring data privacy and security. The Budget proposals would enable the Department of the Treasury’'s Do s Do
Not Pay Business Center to access NDNH and to assist agencies to reduce improper payments. The proposals also allow using Not Pay Business Center to access NDNH and to assist agencies to reduce improper payments. The proposals also allow using
NDNH to establish disability benefit eligibility for the Railroad Retirement Board in a more efficient manner, and to enhance NDNH to establish disability benefit eligibility for the Railroad Retirement Board in a more efficient manner, and to enhance
integrity of HHSintegrity of HHS’' Centers for Medicare & Medicaid Services programs. Centers for Medicare & Medicaid Services programs.”" [ [FY2019 President's Budget, , “"Analytical Perspectives,Analytical Perspectives,”" p. p.
63.]
2019
DOL
ETA
“This proposal wil 63.]

2019

DOL

ETA

"This proposal will require state UI agencies to use the National Directory for New Hires to better identify individuals require state UI agencies to use the National Directory for New Hires to better identify individuals
continuing to claim unemployment compensation after returning to work, which is one of the leading root causes of UI continuing to claim unemployment compensation after returning to work, which is one of the leading root causes of UI
improper payments.improper payments.”" [DOL, [DOL, FY2019 ETA Congressional Budget Justification, p. SUISO-16.], p. SUISO-16.]
2019
DOL
ETA
“

2019

DOL

ETA

"The Budget includes proposals aimed at improving integrity in the Unemployment Insurance (UI) program ... Included in this The Budget includes proposals aimed at improving integrity in the Unemployment Insurance (UI) program ... Included in this
package are proposals to: ..package are proposals to: .. . mandate the use of the National Directory of New Hires to conduct cross-matches for program mandate the use of the National Directory of New Hires to conduct cross-matches for program
integrity purposes.integrity purposes.”" [ [FY2019 President's Budget, , “"Analytical Perspectives,Analytical Perspectives,”" p. 110.]

2020

Multiple

Multiple

" p. 110.]
2020
Multiple
Multiple
“The Budget includes the The Budget includes the fol owingfollowing proposals to expand access to NDNH in statute for program integrity and evidence-building proposals to expand access to NDNH in statute for program integrity and evidence-building
purposes.purposes.
Program Integrity ProposalsProgram Integrity Proposals
•
Treasury/DNP: Allow TreasuryTreasury/DNP: Allow Treasury’'s Do Not Pay (DNP) Business Center to serve as a pass-through between NDNH and s Do Not Pay (DNP) Business Center to serve as a pass-through between NDNH and
federal agency programs that are authorized NDNH access for improper payment purposes.federal agency programs that are authorized NDNH access for improper payment purposes.
•
Railroad Retirement Board: Establish eligibility for processing disability benefits in a more efficient manner.Railroad Retirement Board: Establish eligibility for processing disability benefits in a more efficient manner.
•
HHS/CMS: Allow access to NDNH for HHSHHS/CMS: Allow access to NDNH for HHS’' Centers for Medicare & Medicaid Services (CMS) for program integrity Centers for Medicare & Medicaid Services (CMS) for program integrity
purposes.purposes.
Evidence Building ProposalsEvidence Building Proposals
•
Multi/Statistical and Evaluation Access: Grant access to NDNH for federal statistical agencies, units, and evaluation offices Multi/Statistical and Evaluation Access: Grant access to NDNH for federal statistical agencies, units, and evaluation offices
or their designees for statistical, research, evaluation, and performance measurement purposes.or their designees for statistical, research, evaluation, and performance measurement purposes.
•
State Agencies/Workforce Programs: Enable state agencies (designated by each governor with workforce program State Agencies/Workforce Programs: Enable state agencies (designated by each governor with workforce program
responsibilities) with the authority to match their data with NDNH for program administration, including program responsibilities) with the authority to match their data with NDNH for program administration, including program
oversight and evaluation. Authorize data exchanges between state agencies that administer child support, workforce, and oversight and evaluation. Authorize data exchanges between state agencies that administer child support, workforce, and
vocational rehabilitation programs. Would simplify state reporting on WIOA performance andvocational rehabilitation programs. Would simplify state reporting on WIOA performance and
evaluation results.evaluation results.”
"[HHS, [HHS, FY2020 ACF Congressional Justification, pp. 330-331.], pp. 330-331.]
CRS-18

---

FY
Dept.
Agency
Excerpt of Proposal
2020
Treasury
FS
“

2020

Treasury

FS

"This proposal seeks an expansion of Treasury's authority to access the National Directory of New Hires (NDNH) to help This proposal seeks an expansion of Treasury's authority to access the National Directory of New Hires (NDNH) to help
prevent, identify and recover improper payments. The Social Security Act specifies which agencies may receive information from prevent, identify and recover improper payments. The Social Security Act specifies which agencies may receive information from
the database and the limited purposes for which disclosures are permitted. Under the current law, the Secretary of the Treasury the database and the limited purposes for which disclosures are permitted. Under the current law, the Secretary of the Treasury
has access to information in the NDNH for debt has access to information in the NDNH for debt col ectioncollection purposes. This proposal would expand the Secretary's access to purposes. This proposal would expand the Secretary's access to
information in the NDNH to include the purposes of preventing, identifying, and recovering improper payments for Federal information in the NDNH to include the purposes of preventing, identifying, and recovering improper payments for Federal
agencies. Such access would permit the Secretary to assist paying agencies that are currently authorized by the Social Security agencies. Such access would permit the Secretary to assist paying agencies that are currently authorized by the Social Security
Act to access NDNH, in comparing information from the NDNH with data about persons receiving federal payments and Act to access NDNH, in comparing information from the NDNH with data about persons receiving federal payments and
identify individuals who are ineligible to receive payments or who are receiving erroneous payments.identify individuals who are ineligible to receive payments or who are receiving erroneous payments.”" [Treasury, [Treasury, FY2020 Fiscal
Service Congressional Budget Justification, p. Fiscal Service-10.], p. Fiscal Service-10.]
2020
RRB
NA
“

2020

RRB

NA

"Amend the Social Security Act to provide access for the Railroad Retirement Board to the National Directory of New Hires Amend the Social Security Act to provide access for the Railroad Retirement Board to the National Directory of New Hires
and to waive the customary fees for the RRB.and to waive the customary fees for the RRB.”" [RRB, [RRB, FY2020 Justification of Budget Estimates, p. 72.], p. 72.]
2020
Multiple
Multiple
“

2020

Multiple

Multiple

"NDNH Access for Program Integrity: The NDNH access proposals also include good government provisions to enable NDNH Access for Program Integrity: The NDNH access proposals also include good government provisions to enable
efficiencies for program integrity and eligibility verification, while ensuring data privacy and security. The Budget proposals would efficiencies for program integrity and eligibility verification, while ensuring data privacy and security. The Budget proposals would
enable the Department of the Treasuryenable the Department of the Treasury’'s Do Not Pay Business Center to access NDNH and to assist agencies to reduce s Do Not Pay Business Center to access NDNH and to assist agencies to reduce
improper payments. The proposals also allow using NDNH to establish disability benefit eligibility for the Railroad Retirement improper payments. The proposals also allow using NDNH to establish disability benefit eligibility for the Railroad Retirement
Board in a more efficient manner, and to enhance integrity of HHSBoard in a more efficient manner, and to enhance integrity of HHS’' Centers for Medicare & Medicaid Services programs. Centers for Medicare & Medicaid Services programs.”
" [[FY2020 President's Budget, , “"Analytical Perspectives,Analytical Perspectives,”" p. 63.]

2020

DOL

ETA

" p. 63.]
2020
DOL
ETA
“Require states to cross match against the National Directory of New Hires (NDNH). This proposal Require states to cross match against the National Directory of New Hires (NDNH). This proposal wil will require state UI require state UI
agencies to use the National Directory of New Hires to better identify individuals continuing to claim unemployment agencies to use the National Directory of New Hires to better identify individuals continuing to claim unemployment
compensation after returning to work, which is one of the leading root causes of UI improper payments.compensation after returning to work, which is one of the leading root causes of UI improper payments.”" [DOL, [DOL, FY2020 ETA
Congressional Budget Justification, p. SUISO-21.], p. SUISO-21.]
2020
DOL
ETA
“

2020

DOL

ETA

"Mandate the use of the National Directory of New Hires to conduct cross-matches for program integrity purposes. This Mandate the use of the National Directory of New Hires to conduct cross-matches for program integrity purposes. This
proposal would require State UI agencies to use the National Directory of New Hires to better identify individuals continuing to proposal would require State UI agencies to use the National Directory of New Hires to better identify individuals continuing to
claim unemployment compensation after returning to work, which is one of the leading root causes of UI improper payments.claim unemployment compensation after returning to work, which is one of the leading root causes of UI improper payments.”
" [[FY2020 President's Budget, , “"Analytical Perspectives,Analytical Perspectives,”" p. 88.] p. 88.]
CRS-19

---

FY
Dept.
Agency
Excerpt of Proposal
2021
Multiple
Multiple
“

2021

Multiple

Multiple

"The NDNH access proposals also include good government provisions to enable efficiencies for program integrity and eligibility The NDNH access proposals also include good government provisions to enable efficiencies for program integrity and eligibility
verification, while ensuring data privacy and security. The Budget proposals would enable the Department of Treasuryverification, while ensuring data privacy and security. The Budget proposals would enable the Department of Treasury’'s Do Not s Do Not
Pay Business Center to provide assistance with making data connections between NDNH and federal agency programs that are Pay Business Center to provide assistance with making data connections between NDNH and federal agency programs that are
authorized NDNH access for improper payment purpose. This proposal will also include NDNH access proposals to supportauthorized NDNH access for improper payment purpose. This proposal will also include NDNH access proposals to support
HHSHHS’'s Centers for Medicare & Medicaid Services.s Centers for Medicare & Medicaid Services.
Program integrity ProposalsProgram integrity Proposals
•
Treasury/DNP: Allow TreasuryTreasury/DNP: Allow Treasury’'s Do Not Pay (DNP) Business Center to provide assistance with making data connections s Do Not Pay (DNP) Business Center to provide assistance with making data connections
between NDNH and federal agency programs that are authorized NDNH access for improper payment purposes.between NDNH and federal agency programs that are authorized NDNH access for improper payment purposes.
Evidence Building ProposalsEvidence Building Proposals
•
Multi/Statistical and Evaluation Access to NDNH for federal statistical agencies, units, and evaluation offices or their Multi/Statistical and Evaluation Access to NDNH for federal statistical agencies, units, and evaluation offices or their
designees for statistical, research, evaluation, and performance measurement purposes associated with assessing positive designees for statistical, research, evaluation, and performance measurement purposes associated with assessing positive
labor market outcomes.labor market outcomes.
•
Workforce Programs/DOL and ED: Provide DOL, ED, and state access for program administration, including federal Workforce Programs/DOL and ED: Provide DOL, ED, and state access for program administration, including federal
oversight and evaluation, authorize data exchanges between state child support and workforce agencies. Would simplify oversight and evaluation, authorize data exchanges between state child support and workforce agencies. Would simplify
WIOA performance- and evaluation-related data reporting and decrease burden on states and eligible training providers.WIOA performance- and evaluation-related data reporting and decrease burden on states and eligible training providers.”
"[HHS, [HHS, FY2021 ACF Congressional Justification, pp. 337-339.], pp. 337-339.]
2021
USDA
RHS
“

2021

USDA

RHS

"The U.S. Department of Agriculture's (USDA) Rural Housing Service Rental Assistance Program has been seeking access to the The U.S. Department of Agriculture's (USDA) Rural Housing Service Rental Assistance Program has been seeking access to the
NDNH since its inception in 1996. ACF is proposing a technical fix to amend section 453(j) of the Social Security Act to grant NDNH since its inception in 1996. ACF is proposing a technical fix to amend section 453(j) of the Social Security Act to grant
USDA Rural Housing Service access to NDNH for the purpose of verifying eligibility and validating income source information USDA Rural Housing Service access to NDNH for the purpose of verifying eligibility and validating income source information
provided by means-tested single family housing loan applicants and multifamily housing project-based tenants.provided by means-tested single family housing loan applicants and multifamily housing project-based tenants.”" [HHS, [HHS, FY2021 ACF
Congressional Justification, p. 338.], p. 338.]
2021
Treasury
FS
“

2021

Treasury

FS

"This proposal expands the Secretary's access to information in the NDNH to include the purposes of preventing, identifying, This proposal expands the Secretary's access to information in the NDNH to include the purposes of preventing, identifying,
and recovering improper payments for Federal agencies.and recovering improper payments for Federal agencies.”" [Treasury, [Treasury, FY2021 Fiscal Service Congressional Budget Justification, p. , p.
Fiscal-10.]Fiscal-10.]
2021
DOL
ETA
“This proposal wil

2021

DOL

ETA

"This proposal will require State UI agencies to use the National Directory of New Hires to better identify individuals continuing require State UI agencies to use the National Directory of New Hires to better identify individuals continuing
to claim unemployment compensation after returning to work, which is one of the leading root causes of UI improper to claim unemployment compensation after returning to work, which is one of the leading root causes of UI improper
payments.payments.”" [DOL, [DOL, FY2021 ETA Congressional Budget Justification, SUISO-22.], SUISO-22.]
2021
DOL
ETA
“

2021

DOL

ETA

"This proposal would require State UI agencies to use the National Directory of New Hires to better identify individuals This proposal would require State UI agencies to use the National Directory of New Hires to better identify individuals
continuing to claim unemployment compensation after returning to work, which is one of the leading root causes of UI continuing to claim unemployment compensation after returning to work, which is one of the leading root causes of UI
improper payments.improper payments.”" [ [FY2021 President's Budget, , “"Analytical Perspectives,Analytical Perspectives,”" p. 65.] p. 65.]
CRS-20

---

FY
Dept.
Agency
Excerpt of Proposal
2021
DOL
VETS
“

2021

DOL

VETS

"This request would enable the Department to expand the existing capabilities of the VeteranThis request would enable the Department to expand the existing capabilities of the Veteran’'s Data Exchange Initiative (VDEI) s Data Exchange Initiative (VDEI)
to more efficiently interact with the National Directory of New Hires (NDNH) in order to better track and analyze the to more efficiently interact with the National Directory of New Hires (NDNH) in order to better track and analyze the
employment outcomes of transitioning service members. The Department is in the process of expanding the DOL data analytics employment outcomes of transitioning service members. The Department is in the process of expanding the DOL data analytics
platform to a cloud-based system for a variety of purposes, including securely storing, matching, and analyzing NDNH data. This platform to a cloud-based system for a variety of purposes, including securely storing, matching, and analyzing NDNH data. This
request is for a module that would focus specifically on tracking and analyzing veteransrequest is for a module that would focus specifically on tracking and analyzing veterans’' employment outcomes. employment outcomes.”" [DOL, [DOL, FY2021
Veterans Employment Congressional Justification, p. 14.], p. 14.]
2024
Treasury
FS
“

2024

DOL

ETA

"This proposal will require state UI agencies to use the National Directory of New Hires to better identify individuals continuing to claim unemployment compensation after returning to work, which is one of the leading root causes of UI improper payments." [DOL, FY2024 ETA Congressional Budget Justification, SUIESO-25.]

2024

Treasury

FS

"This proposal would authorize DNP to facilitate data exchange with paying agencies that are currently authorized by the Social This proposal would authorize DNP to facilitate data exchange with paying agencies that are currently authorized by the Social
Security Act to access NDNH regarding persons receiving Federal payments while identifying individuals who are ineligible to Security Act to access NDNH regarding persons receiving Federal payments while identifying individuals who are ineligible to
receive payments or who are receiving erroneous payments.receive payments or who are receiving erroneous payments.”" [Treasury, [Treasury, FY2024 Fiscal Service Congressional Budget Justification, ,
Fiscal Service-10.]Fiscal Service-10.]
Source: FY2015-FY2024 President’s Budget, “Analytical Perspectives”

2025

Treasury

FS

"This proposal authorizes Do Not Pay to facilitate data exchange with paying agencies that are currently authorized by the Social Security Act to access NDNH regarding persons receiving Federal payments while helping those agencies identify individuals who are ineligible to receive payments or who are receiving erroneous payments." [Treasury, FY2025 Fiscal Service Congressional Budget Justification, Fiscal Service-11.]

2025

DOL

ETA

"This proposal would require state UI agencies to use the National Directory of New Hires to better identify individuals continuing to claim unemployment compensation after returning to work, which is one of the leading root causes of UI improper payments." [DOL, FY2025 ETA Congressional Budget Justification, SUIESO-23.]

2025

Multiple

Multiple

"The Administration also supports efforts to more effectively use administrative data for evidence-building, including employment and earnings data. Expanding secure access to critical data sources, like the National Directory of New Hires, among others, will unleash their full potential to help the Federal Government build the evidence it needs to better serve the American people." [FY2025 President's Budget "Analytical Perspectives," p. 143.]

Source: FY2015-FY2025 President's Budget, "Analytical Perspectives" volumes, and Congressional Budget Justifications for HHS, Treasury, DOL, ED, RRB, USDA, and volumes, and Congressional Budget Justifications for HHS, Treasury, DOL, ED, RRB, USDA, and
Commerce.Commerce.
Notes: FYFY= = Fiscal Year; HHSFiscal Year; HHS= = Department of Health and Human Services; ACFDepartment of Health and Human Services; ACF= = Administration for Children and Families; TreasuryAdministration for Children and Families; Treasury= = Department of the Treasury; Department of the Treasury;
IRS=IRS = Internal Revenue Service; DOLInternal Revenue Service; DOL= = Department of Labor; ETADepartment of Labor; ETA= = Employment and Training Administration; CommerceEmployment and Training Administration; Commerce= = Department of Commerce; CensusDepartment of Commerce; Census= = Bureau of Bureau of
the Census; CMSthe Census; CMS= = Centers for Medicare and Medicaid Services; FSCenters for Medicare and Medicaid Services; FS= = Bureau of the Fiscal Service; EDBureau of the Fiscal Service; ED= = Department of Education; CTAEDepartment of Education; CTAE= = Career, Technical, and Adult Career, Technical, and Adult
Education; USDAEducation; USDA= = Department of Agriculture; RHSDepartment of Agriculture; RHS= = Rural Housing Service; UIRural Housing Service; UI: = Unemployment Insurance; RRB Unemployment Insurance; RRB= = Railroad Retirement Board, VETSRailroad Retirement Board, VETS= = Veterans Employment and Training Service.

An earlier version of this report was authored by Carmen Solomon-Fears, retired CRS Specialist in Social Policy.

Footnotes

1.

Federal law provisions related to the State Directory of New Hires are in Section 453A of the Social Security Act. Federal law provisions specifically related to the NDNH (i.e., the national system) are in Sections 453(i) and (j) of the act. The NDNH, together with the State Directories of New Hires and the federal and state Child Support Case Registries, was established as part of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193). Other provisions in Section 453 governing the Federal Parent Locator Service (FPLS), of which the NDNH is a component system, may also be relevant.

2.

U.S. Department of Health and Human Services (HHS), Administration for Children and Families (ACF), Office of Child Support Enforcement (OCSE), 15 Facts on Employer New Hire Reporting Child Support Enforcement: A Compilation of Evidence and Experience from the States, February 12, 1997, pp. 1-2.

3.

A putative father is "the person alleged to be the (birth) father of the child but has not yet been medically or legally declared to be the legal father" (HHS, ACF, OCSE, Glossary of Common Child Support Terms, 2023, https://acf.gov/css/glossary).

4.

HHS, ACF, OCSE, Preliminary Data Report for FY2023, Table P-97, https://acf.gov/sites/default/files/documents/ocse/fy_2023_preliminary_report.pdf.

5.

For a summary of FPLS components, see CRS Report RS22380, Child Support Enforcement: Program Basics.

6.

The NDNH system itself is housed in the Social Security Administration's (SSA's) enterprise data infrastructure.

7.

Title IV-D of the Social Security Act and the regulations in 45 C.F.R. refer to the "Office of Child Support Enforcement" and the "Child Support Enforcement Program." However, on June 5, 2023, HHS published a notice in the Federal Register changing the name of the program and administering entity within HHS to the Office of Child Support Services in Part K of the Statement of Organization, Functions, and Delegations of Authority of the Department of Health and Human Services, Administration for Children and Families (ACF) (Federal Register, vol. 88, no. 107, Monday July 5, 2023, p. 36587). On December 31, 2024, OCSS published a direct final rule in the Federal Register further effectuating the name change of the office and making related changes to the program name. This direct final rule was effective 60 days after its publication (Federal Register, vol. 89, no. 250, Tuesday, December 31, 2024, p. 107015). (The CSS program statutory authorities are found in Title IV-D of the Social Security Act [42 U.S.C. §651 through §669b]. The CSS federal regulations are found in 45 C.F.R. §301 through §310. Note.)

8. See footnote 7. Similarly, for citations this report uses the name of the entity and program listed on the cited publication. 9.

HHS, ACF, OCSE, Preliminary Data Report for FY2023, Table P-97, https://acf.gov/sites/default/files/documents/ocse/fy_2023_preliminary_report.pdf.

10.

The W-4 form, also called the Employee's Withholding Allowance Certificate, is the form all employees must complete so that employers can withhold the correct federal income tax from each person's paycheck. Since the enactment of P.L. 112-40, the requirement to report "newly hired employees" has been expanded to include rehired employees who have been separated from employment for at least 60 days.

11.

HHS, ACF, OCSE, National Directory of New Hires Guide for Data Submission, Version 13.4, August 10, 2022, pp. 2-1 and 2-2, https://acf.gov/sites/default/files/documents/ocse/ndnh_guide_for_data_submission.pdf.

12.

States have the option of imposing a civil monetary penalty for the failure of employers to report the required new hire information. The penalty cannot exceed $25 per failure to meet the requirements with respect to each newly hired employee, or $500 if under state law the failure is the result of a conspiracy between the employer and the employee not to supply the required report or to supply a false or incomplete report. Section 453(n) of the Social Security Act allows certain employees of a federal or state agency performing intelligence or counterintelligence functions not to be reported to the new hires directories.

13.

For information on the federal-state UI system, including coverage issues, see CRS Report R46687, Unemployment Insurance (UI) Benefits: Permanent-Law Programs and the COVID-19 Pandemic Response.

14.

See 20 C.F.R. §603.6(b)(5).

15.

HHS, ACF, OCSE, A Guide to the National Directory of New Hires, April 2024, p. 2, https://acf.gov/sites/default/files/documents/ocse/a_guide_to_the_national_directory_of_new_hires.pdf.

16.

Ibid.

17.

Social Security Act §453(j).

18.

HHS, ACF, OCSE, National Directory of New Hires Guide for Data Submission, Version 13.4, August 10, 2022, pp. 1-5 and 1-6, https://www.acf.hhs.gov/sites/default/files/documents/ocse/ndnh_guide_for_data_submission.pdf.

19.

For a full list of time frames for reporting and matching, see ibid., pp. 2-1, 3-1, and 4-1.

20.

Federal agencies are required to transmit QW information on federal employees to the NDNH no later than one month after the end of a calendar quarter.

21.

HHS, ACF, OCSE, Preliminary Data Report for FY2023, Table P-29, https://acf.gov/sites/default/files/documents/ocse/fy_2023_preliminary_report.pdf.

22.

Kye Lippold and Elaine Sorensen, Characteristics of Families Served by the Child Support (IV-D) Program: 2016 Census Survey Results, Urban Institute, November 2018, p. 1, https://www.acf.hhs.gov/sites/default/files/documents/ocse/iv_d_characteristics_2016_census_results.pdf.

23.

Section 454(17) of the Social Security Act requires that all state CSS programs have in effect agreements with HHS for the use of the FPLS, which includes the NDNH.

24.

For further information, see SSA matching agreements 1074, 1098, and 1306, https://www.ssa.gov/privacy/computer_matching_programs.html.

25.

Although SWAs already have access to the quarterly wage and UI data elements, SWAs require the new hires data element for UI program administration purposes so UI claimants who are employed/reemployed do not receive UI benefits.

26.

The original authority referenced the "Food Stamp" program. P.L. 110-246 changed program references to the "Supplemental Nutrition Assistance Program" (SNAP). P.L. 113-79 required all state SNAP agencies (rather than giving them the option) to data-match with the NDNH at the time of SNAP certification for the purposes of determining eligibility to receive SNAP benefits and determining the correct amount of those benefits. For further information about SNAP data matching with the NDNH, see CRS Report R45147, Errors and Fraud in the Supplemental Nutrition Assistance Program (SNAP).

27.

See HHS, ACF, OCSE, "A Guide to the National Directory of New Hires," pp. 4-6.

28.

See Social Security Act §453(j)(11). For background on how the VA anticipated that the requirement to match data with the NDNH might overlap with existing income-verification processes, see the testimony of Daniel L Cooper, Under Secretary for Benefits, U.S. Department of Veterans Affairs, before the Senate Committee on Veterans' Affairs, May 9, 2007, https://www.veterans.senate.gov/services/files/14537789-78D6-40A6-B2E1-B5E607E4809D.

29.

U.S. Government Accountability Office (GAO), Veterans Disability Benefits: VA Can Better Ensure Unemployability Decisions Are Well Supported, GAO-15-464, June 2015, p. 23, https://www.gao.gov/assets/680/670592.pdf.

30.

42 U.S.C. §653 (j)(11)(D)(ii).

31.

See, for example, the discussion of the use of NDNH data to locate TANF recipient workers with unreported income, Wade F. Horn, Assistant Secretary for Children and Families, U.S. Department of Health and Human Services, Testimony before the Human Resources Subcommittee, July 14, 2005, https://www.acf.hhs.gov/olab/resource/wade-f-horn-on-ndnh-and-tanf.

32.

See DOL, Office of Inspector General (OIG), "U.S. Department of Labor's Top Management and Performance Challenges," November 2023, p. 3, https://www.oig.dol.gov/public/DOL%202023%20Top%20Management%20and%20Performance%20Challenges.pdf.

33.

GAO, Improper Payments: Federal and State Coordination Needed to Report National Improper Payment Estimates on Federal Programs, GAO-06-347, April 2006, p. 59, https://www.gao.gov/assets/250/249728.pdf.

34.

See SSA-OCSE Quarterly Match Agreement 1704, p. 46, https://www.hhs.gov/sites/default/files/cma-1704.pdf.

35.

Although this is currently required in DOL program guidance, there is no statutory requirement for states to use NDNH (or several other related data cross matches). See DOL, Employment and Training Administration (ETA), "National Effort to Reduce Improper Payments in the Unemployment Insurance (UI) Program," UIPL No. 19-11, June 10, 2011, https://www.dol.gov/agencies/eta/advisories/unemployment-insurance-program-letter-no-19-11; and DOL, ETA, "National Directory of New Hires (NDNH) and State Directory of New Hires (SDNH) Guidance and Best Practices," UIPL No. 13-19, June 7, 2019, https://www.dol.gov/agencies/eta/advisories/unemployment-insurance-program-letter-no-13-19.

36.

Similar proposals also have been made by the DOL OIG (See DOL OIG, "OIG Oversight of the Unemployment Insurance Program," https://www.oig.dol.gov/doloiguioversightwork.htm#recm) and have been included in recent legislation. (For example, see S. 4663 in the 118^th Congress, and S. 1699, S. 4507, H.R. 3268, H.R. 8000, and H.R. 8661, in the 117^th Congress. For additional information on UI program integrity bills introduced in the 117^th Congress, see CRS Report R46789, Unemployment Insurance: Legislative Issues in the 117th Congress, First Session; and CRS Report R47393, Unemployment Insurance: Legislative Issues in the 117th Congress, Second Session. Additionally, in the 111^th Congress, the House Engrossed Amendment of H.R. 4899 included a statutory requirement for states to use NDNH data matching; however, the version of this bill that was enacted into law as P.L. 111-212 did not include this NDNH provision.)

37.

See, for example, the findings with regard to SWA utilization of the NDNH in Department of Labor, Office of Inspector General—Office of Audit, Improved Oversight of States' Use of New Hire Tools Would Help Reduce Improper Payments, report to the Employment and Training Administration, September 27, 2018, 04-18-003-03-315, https://www.oig.dol.gov/public/reports/oa/2018/04-18-003-03-315.pdf.

38.

David Fein and Jill Hamadyk, Bridging the Opportunity Divide for Low-Income Youth: Implementation and Early Impacts of the Year Up Program, HHS, ACF, Office of Planning, Research, and Evaluation, Report #2018-65 (Washington, DC: Office of Planning, Research, and Evaluation, May 2018), https://www.acf.hhs.gov/sites/default/files/documents/opre/pace_8_year_up_narrative_6_1_18_508.pdf.

39.

Christin Durham and Laura Wheaton, Investigating Alternative Sources of Quarterly Wage Data: An Overview of the NDNH, LEHD, WRIS, and ADARE, Urban Institute, October 18, 2012, p. 3, http://www.urban.org/sites/default/files/publication/25971/412688-Investigating-Alternative-Sources-of-Quarterly-Wage-Data-An-Overview-of-the-NDNH-LEHD-WRIS-and-ADARE.PDF.

40.

The NDNH is subject to security and privacy requirements under Sections 453(l) and (m) of the Social Security Act. It also is considered to be a system of records under the Privacy Act, and thus is subject to the requirements under that act for administrative, technical, and physical safeguards for both the records matched and any results of those matches (see 5 U.S.C. 552a).

41.

HHS, ACF, OCSS, A Guide to the National Directory of New Hires, pp. 7-8. See also HHS, ACF, OCSE, Accuracy of Data Maintained by the National Directory of New Hires and the Effectiveness of Security Procedures, Report to the House of Representatives Committee on Ways and Means and Senate Committee on Finance, July 31, 2002.

42.

See, for example, Cato Institute, "'Deadbeat Dad' Database Endangers Everyone," by Doug Bandow, April 30, 1998, https://www.cato.org/publications/commentary/deadbeat-dad-database-endangers-everyone.

43.

GAO, National Sex Offender Registry: New Hires Data Has Potential for Updating Addresses of Convicted Sex Offenders, GAO-06-766, July 2006, p. 26, https://www.gao.gov/products/GAO-06-766. See also U.S. Department of the Treasury, Inspector General for Tax Administration, Hearing before the House Committee on Oversight and Government Reform, Subcommittee on Government Organization, Efficiency, and Financial Management, Problems at the Internal Revenue Service: Closing the Tax Gap and Preventing Identity Theft, Testimony of the Honorable J. Russell George, Treasury Inspector General for Tax Administration, April 19, 2012, https://www.tigta.gov/sites/default/files/publications/2021-11/congress_04192012.pdf.

44.

See, for example, the proposal to expand access to and the data collected by the NDNH in Center for Law and Social Policy, CLASP Comments on a Proposed Postsecondary Institution Rating System, Submitted to the U.S. Department of Education, January 31, 2014. p. 5, http://www.clasp.org/resources-and-publications/publication-1/CLASP-Comments-on-PIRS-2-4.pdf.

45.

Vicki Turetsky, Preserve the Child Support System: Don't Let the New Hire Database Be Hijacked for Immigrant Employment Verification, Center for Law and Social Policy, May 6, 2008; National Women's Law Center, Impact of the New Employee Verification Act (HR 5515) on Child Support Enforcement, written statement of Joan Entmacher to the Subcommittee on Social Security, House Committee on Ways and Means, May 8, 2008, https://nwlc.org/wp-content/uploads/2015/08/NWLConNEVAandChild%20Support.pdf.

46.

Ibid., Table P-29.

47.

Lawrence F Katz and Alan B. Krueger, "The Rise and Nature of Alternative Work Arrangements in the United States, 1995–2015," ILR Review, vol. 72, no. 2 (March 2019), pp. 382-416; and CRS Report R44365, What Does the Gig Economy Mean for Workers?.

48.

See, for example, FY2017 ACF Congressional Justification, p. 308; and FY2021 ACF Congressional Justification, p. 242.

49.

These state-level requirements have differing income thresholds and a variety of other qualifying criteria for the reporting. See Asaph Glosser and Justin Germain, Independent Contractors and Nontraditional Workers: Implications for the Child Support Program, HHS, Office of the Assistant Secretary for Planning and Evaluation, May 10, 2019, https://aspe.hhs.gov/system/files/pdf/261736/IndependentWorkersChildSupportProgram.pdf.

50.

Ibid., p. 6.

51.

Ibid., pp. 7-8. See also National Child Support Enforcement Association, "Resolution Supporting New Hire Reporting and Income Withholding Changes for Independent Contractors," August 10, 2019, https://www.ncsea.org/wp-content/uploads/2023/09/12-New-Hire-Reporting-and-Income-Withholding-Changes-for-Independent-Contractors-Aug-2023.pdf.

Veterans Employment
and Training Service.


CRS-21

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The National Directory of New Hires: An Overview




Author Information

Jessica Tollestrup

Specialist in Social Policy


Acknowledgments
An earlier version of this report was authored by Carmen Solomon-Fears, retired CRS Specialist in Social
Policy.

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
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Congressional Research Service
RS22889 · VERSION 14 · UPDATED
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