Child Support Distribution Act of 2001

Child Support Distribution Act of 2001 - Amends title IV part D (Child Support and Establishment of Paternity) of the Social Security Act (SSA) to revise requirements for the distribution of child support collected by States on behalf of children receiving certain welfare benefits.

Requires the chief executive officer of a State to certify that it has established procedures to ensure that the State agency administering the child support enforcement program will be notified of certain families leaving the Temporary Assistance for Needy Families (TANF) program under SSA title IV part A.

Requires the State child support enforcement agency to review and, if appropriate, adjust any child support order relating to any individual leaving TANF.

Directs the Secretary of Health and Human Services to develop recommendations that address participation of public non-IV-D child support enforcement agencies in establishing and enforcing child support obligations.

Prescribes requirements for ten demonstration projects involving establishment and enforcement of child support obligations by such agencies.

Reduces the amount of child support arrearage which shall trigger denial of a passport.

Revises requirements for the use of tax refund intercept program to collect past-due child support on behalf of non-minor children.

Prohibits garnishment of certain compensation for a service-connected disability paid to a former member of the Armed Forces for alimony or child support less than 60 days in arrears. Limits to 50 percent such compensation allowable for garnishment.

Directs the Secretary to award competitive matching grants to eligible entities, among other things to help fathers and their families avoid or leave cash welfare and improve their economic status. Establishes the Fatherhood Grants Recommendations Panel.

Instructs the Secretary to award a specified grant to a fatherhood promotion organization meeting certain requirements.

Requires the Secretary to disclose new hire information to a State to assist in unemployment compensation program administration.

Amends the Immigration and Nationality Act to make ineligible for visas and for admission to the United States certain nonimmigrant aliens with child support arrearages. Provides for an increase in payment rate to States for short term training of staff of State-licensed or State-approved child welfare agencies providing services.