Texas House Bill 4213 - Lowers interest percentage on unpaid child support

April 24, 2025 Posted in News

It's been a busy legislative session so far and this week has been no different. So far the 89th Legislative Session has been busy. The following bill is out of committee (Family & Fiduciary Relationships) with Representative Dutton as the sponsor. It provides some relief for parents owing unpaid child support by lowering the interest rate accrual from 6% to 3% for amounts accruing after January 1st 2026. The text of the Bill is below. This change could have meaningful implications for parents navigating child support obligations. Here’s what you need to know.

Understanding the Current Law - Under the existing Texas Family Code (§157.265), unpaid child support, known as arrearages, accrues interest at a rate of 6% per year. This interest compounds over time, significantly increasing the total amount owed, especially for parents facing financial hardship. The high interest rate is intended to encourage timely payments but can create a heavy burden for those already struggling to meet their obligations.
 
The Proposed Change: From 6% to 3% - The new bill, which has cleared committee and is advancing through the Texas House, aims to lower the interest rate on unpaid child support to 3% starting in 2025. This reduction reflects a growing recognition that the current rate may exacerbate financial strain without effectively improving payment compliance. By halving the interest rate, the bill seeks to:
  • Ease Financial Burdens: Lower interest accumulation means parents owe less over time, making it more feasible to catch up on missed payments.
  • Encourage Compliance: A less punitive rate may motivate parents to stay current or negotiate payment plans without fear of overwhelming debt.
  • Support Families: Reducing arrearages ensures more resources are available for the child’s needs, aligning with the core purpose of child support.
Why This Matters - For parents who owe child support, the 6% interest rate can turn a manageable obligation into an insurmountable debt. For example, a $10,000 arrearage at 6% interest grows by $600 annually, compared to $300 at 3%. Over five years, that’s a difference of $1,500—money that could be better used to support the child or stabilize the paying parent’s finances. This change also benefits custodial parents. While interest on arrearages is meant to compensate for delayed payments, the reality is that high interest often goes unpaid, leaving custodial parents waiting longer for funds. A lower rate may encourage more consistent payments, ensuring children receive the support they need sooner.
 
What’s Next for the Bill? - Having passed the committee stage, the bill now moves to the Texas House for further debate and a vote. If approved, it will head to the Senate and, ultimately, to Governor Greg Abbott for signing. While the bill has momentum, it’s not law yet, and amendments or opposition could arise. We’ll continue to monitor its progress and provide updates as it moves through the legislative process.
 
How This Could Affect You - If you’re a parent paying or receiving child support, this proposed change could impact your financial planning:
  • For Noncustodial Parents: A lower interest rate reduces the long-term cost of arrearages, but it doesn’t eliminate the obligation to pay. Proactive steps, like requesting a payment plan or modification, remain critical.
  • For Custodial Parents: While the interest reduction may lower the total owed, it could incentivize more consistent payments, benefiting your child.
  • For Both: Consulting with a family law attorney can help you understand how this change fits into your case and explore options like modifying existing orders.
Whether you’re facing challenges with arrearages, seeking to enforce payments, or navigating a modification, I am an experienced Dallas family law attorney and can help guide you. I like to stay ahead of legislative changes like this one to ensure you have the information and support you need.
 
Stay Informed and Take Action - The proposed reduction in the child support interest rate is a step toward a more balanced system, but it’s just one piece of the puzzle. If you have questions about how this bill or Texas child support laws affect you, contact me today for a consultation. The pertinent text of the bill is as follows: 
 

House Bill 4213 A BILL TO BE ENTITLED

AN ACT relating to the accrual of interest on overdue child support.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

Sections 157.265(a), (b), and (c), Family Code, are amended to read as follows: (a) 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 [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.