The bill, S.B. No. 629, amends the Family Code regarding the accrual of interest on overdue child support payments. It changes the interest rate on delinquent child support from six percent to three percent simple interest per year. This new rate applies to the portion of delinquent support exceeding the monthly obligation, as well as to child support arrearages that have been confirmed and reduced to a money judgment, and to retroactive or lump-sum child support judgments. Additionally, Sections 157.265(d), (e), and (f) of the Family Code are repealed.

The bill specifies that the amended interest rates will apply to child support payments due on or after January 1, 2026. For arrearages existing on that date, the interest will be calculated based on the rates that were in effect prior to the bill's enactment until the new rates take effect. Money judgments for child support rendered before January 1, 2026, will continue to be governed by the previous law. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Family Code 157.265 (Family Code 157)