The bill amends the Family Code regarding the accrual of interest on overdue child support payments. Specifically, 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 Additionally, Sections 157.265(d), (e), and (f) of the Family Code are repealed.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 amended provisions will take effect on January 1, 2026, for child support payments due on or after that date. For arrearages existing before this date, the bill outlines a tiered interest application based on when the arrearages were incurred. Payments due before January 1, 2002, will retain their previous interest rates, while those from January 1, 2002, to January 1, 2026, will be subject to the interest rate that was in effect prior to this bill. Money judgments for child support rendered before January 1, 2026, will continue to be governed by the law in effect at the time of the judgment. The bill is set to take effect on September 1, 2025.

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