Relating to the accrual of interest on overdue child support.
One of the key impacts of SB629 is its specific application timeline. The changes to how interest accrues will only apply to child support payments that become due on or after January 1, 2026. Existing arrearages up to that point will be subjected to the interest rates applicable before the new law takes effect, potentially affecting many parents depending on their individual payment history. By specifying these timelines, the bill aims to create a clear transition for those affected by changes in interest accrual for overdue payments.
Senate Bill 629 (SB629) addresses the accrual of interest on overdue child support by amending specific sections of the Texas Family Code. The bill establishes that interest on delinquent child support obligations exceeding the monthly support amount will accrue at a rate of three percent per year from the date of delinquency until it's paid or confirmed with a money judgment. This amendment significantly reduces the previous higher interest rate, which was six percent, aligning with the legislative intent to facilitate better management of child support payments and lower the financial burden on non-custodial parents.
Overall, SB629 is a proactive step toward reforming child support regulations in Texas, with an emphasis on equitable and manageable payment plans for non-custodial parents while ensuring that custodial parents are adequately supported. Its implementation may result in both positive changes for accountability in child support payment procedures and discussions on how best to enforce these provisions to meet the needs of families relying on support.
While SB629 seeks to simplify the interest calculation for overdue child support, there may be contention around the effectiveness of the decreased interest rate and its impact on custodial parents relying on these payments. Opponents might argue that reducing the interest rate could diminish the incentive for timely payment and potentially affect families that depend on child support for their livelihood. Additionally, there could be debate surrounding whether the bill does enough to address systemic issues with child support enforcement and collection.