H.B. No. 4213 amends Section 157.265 of the Texas Family Code to change the interest rate applied to overdue child support payments. The bill specifies that interest on delinquent child support will 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 judgments. Additionally, the bill establishes that these new interest provisions will apply to child support payments due on or after January 1, 2026.

Furthermore, the bill outlines how child support arrearages existing before January 1, 2026, will be treated. Arrearages that were not confirmed and reduced to a money judgment by that date will continue to accrue interest at the rate that was applicable prior to January 1, 2026, until that date. Afterward, the cumulative total of those arrearages and any interest accrued will be subject to the new interest rate provisions. 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)