Bill > HB4213

This bill modifies the Texas Family Code regarding the accrual of interest on overdue child support by changing the interest rate from a fixed 6% simple interest per year to an interest rate determined under Section 304.003 of the Finance Code. Specifically, the bill updates how interest accrues on delinquent child support payments, child support arrearages that have been confirmed as a money judgment, and money judgments for retroactive or lump-sum child support. The changes will apply to child support payments due on or after January 1, 2026, and existing child support arrearages will have a transitional period where they are subject to their previous interest rate before being converted to the new rate. Notably, the bill ensures that money judgments rendered before 2026 will still be governed by the law in effect at the time they were originally rendered. The act will take effect on January 1, 2026, giving time for legal and financial systems to prepare for the updated interest calculation method.

Budget and Finance, Justice

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4213