The bill, H.B. No. 4213, amends Section 157.265 of the Family Code regarding the accrual of interest on overdue child support. It establishes that interest on delinquent child support will now accrue at the interest rate determined under Section 304.003 of the Finance Code, replacing the previous fixed rate of six percent simple interest per year. This change applies to various scenarios, including delinquent payments, confirmed arrearages, and retroactive or lump-sum child support judgments. The bill specifies that these new interest rates will apply to child support payments due on or after January 1, 2026, while arrearages existing before that date will continue to accrue interest at the rate applicable prior to the change until the new provisions take effect.

Additionally, the bill clarifies that any money judgments for child support rendered on or after January 1, 2026, will be subject to the new interest rate provisions, while judgments rendered before that date will be governed by the law in effect at the time of the judgment. The overall intent of the bill is to modernize the interest accrual process for overdue child support, ensuring that it aligns with current financial standards and practices. The act is set to take effect on January 1, 2026.

Statutes affected:
Introduced: Family Code 157.265 (Family Code 157)
House Committee Report: Family Code 157.265 (Family Code 157)
Engrossed: Family Code 157.265 (Family Code 157)