BILL ANALYSIS

 

 

Senate Research Center	S.B. 629
89R5761 KRM-D	By: Zaffirini
	Jurisprudence
	4/7/2025
	As Filed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Many Texas families face financial hardship due to unpaid child support, which has reached approximately $19 billion statewide. A substantial portion of this debt is owed by noncustodial parents with limited incomes who often struggle to meet current child support obligations, let alone repay overdue amounts burdened by a six percent interest rate on arrears. This high interest rate compounds the debt, making it increasingly difficult for low-income parents to catch up on missed payments and thereby worsening the financial challenges faced by custodial families awaiting support.

 

S.B. 629 would address this issue by reducing the interest rate on past-due child support from six percent to three percent. Lowering this interest rate would make repayments more achievable, encouraging consistent payment behavior, especially among low-income earners, and providing more reliable support for custodial families.

 

As proposed, S.B. 629 amends current law relating to the accrual of interest on overdue child support.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Sections 157.265(a), (b), and (c), Family Code, as follows:

 

(a) Provides that interest accrues on the portion of delinquent child support that is greater than the amount of the monthly periodic support obligation at the rate of three, rather than six, percent simple interest per year from the date the support is delinquent until the date the support is paid or the arrearages are confirmed and reduced to money judgment.

 

(b) Provides that interest accrues on child support arrearages that have been confirmed and reduced to money judgment as provided in Subchapter F (Judgment and Interest), Chapter 157 (Enforcement) at the rate of three, rather than six, percent simple interest per year from the date the order is rendered until the date the judgment is paid.

 

(c) Provides that interest accrues on a money judgment for retroactive or lump-sum child support at the annual rate of three, rather than six, percent simple interest from the date the order is rendered until the judgment is paid.

 

SECTION 2. Repealers: Sections 157.265(d) (relating to providing that Subsection (a) applies to a child support payment that becomes due after a certain date) and (e) (relating to providing that child support arrearages in existence before a certain date that meet certain criteria accrue certain interest), Family Code.

 

Repealer: Section 157.265(f) (relating to providing that certain subsections apply to a money judgment for child support rendered on or after a certain date), Family Code.

 

SECTION 3. (a) Makes application of Section 157.265(a), Family Code, as amended by this Act, prospective to January 1, 2026.

 

(b) Provides that child support arrearages in existence on January 1, 2026, that were not confirmed and reduced to a money judgment on or before that date accrue interest as follows:

 

(1) before January 1, 2002, the arrearages are subject to the interest rate that applied to the arrearages before that date;

 

(2) on or after January 1, 2002, but before January 1, 2026, the arrearages are subject to the interest rate that applied to the arrearages immediately before the effective date of this Act; and

 

(3) on or after January 1, 2026, the cumulative total of arrearages and interest accumulated on the arrearages described by Subdivisions (1) and (2) of this subsection is subject to Section 157.265(a), Family Code, as amended by this Act.

 

(c) Makes application of Sections 157.265(b) and (c), as amended by this Act, prospective to January 1, 2026.

 

SECTION 4. Effective date: September 1, 2025.