New California Law on Suspended Licenses and Child Support

California’s new law on suspended licenses and child support took effect on January 1, 2025, and it stops the state from automatically suspending a parent’s driver’s license over unpaid support when that parent’s household income is at or below 70 percent of the Area Median Income for their county. Senate Bill 1055 added Section 17520.5 to the Family Code and prompted the release of more than 149,000 previously suspended licenses so affected parents could drive again immediately.¹

The change is narrow but meaningful. It protects only driver’s licenses, only for parents under the income line, and one piece of it expires at the start of 2027 for commercial drivers.

Who Qualifies for the Protection

The test is your annual household income measured against 70 percent of the Area Median Income for the county where you live. The Department of Child Support Services cannot send your name to the DMV for suspension if you fall at or below that line, no matter how far behind you are on payments.²

The dollar threshold varies by county because AMI figures vary by county. A parent in a high-cost coastal area will have a higher cutoff than a parent in the Central Valley. The California Department of Housing and Community Development publishes the current income limits, and your local child support agency can tell you where your household falls for your county.²

Two details are easy to miss. The statute uses household income, not just your own earnings, so another earner under your roof can push you over the line. And if your income drops after a prior determination, it is worth asking your local agency for a redetermination rather than assuming the old answer still applies.

What Happens if Your License Was Already Suspended

The joint action by California Child Support Services and the DMV on January 1, 2025 released more than 149,000 licenses that had been held under the old rules.¹ If you qualify under the income test, there is a good chance your record was cleared in that batch. Check with the DMV to confirm the child support hold is gone.

If it is not, you have to go through your local child support agency, not the DMV, to get a release issued. That is the only path.³ Expect to make some payment toward your overdue balance as part of the conversation. If you have cases in more than one county, those agencies must coordinate before any release goes through.⁴ Once the release is issued, the DMV processes it and lifts the hold. You may also owe the DMV’s standard $55 reissue fee.

What the Law Does Not Cover

The protection is limited to driver’s licenses. Professional and occupational licenses remain fair game for suspension through the older Family Code Section 17520 process, regardless of income. A nurse, contractor, or real estate agent behind on support can still lose the credential they work under.⁵ The same is true of commercial fishing licenses, notary commissions, and State Bar memberships, all of which fall within the broad definition of “license” under Section 17520.⁶

Commercial Drivers Lose the Protection in 2027

There is a deadline built into SB 1055. Starting January 1, 2027, the income-based exemption applies only to noncommercial driver’s licenses.² A parent who holds a commercial driver’s license and owes back support will again be subject to suspension after that date even if their income is below 70 percent of AMI. If you drive commercially for a living, the window to get current or negotiate a payment plan closes at the end of 2026.

The Underlying Debt Still Exists

Protecting your license does not erase what you owe. The local agency can still pursue wage withholding, bank levies, liens on property, state and federal tax refund intercepts, and credit bureau reporting. Federal law also directs the State Department to deny a passport once arrears exceed $2,500.⁷⁸⁹

If Your Income Is Above the Threshold

The older enforcement framework still governs anyone over the 70 percent AMI line. A parent is considered out of compliance once they fall more than 30 calendar days behind on current support or on a payment plan for arrears. The local agency can submit their name to the DMV, which then issues a temporary 150-day license and mails a notice of intent to suspend. During that window the parent can contact the agency to negotiate a payment arrangement or pay down the debt. For noncommercial licenses, the agency or a court can extend the temporary period by another 150 days for good cause. If the parent does nothing, the license is suspended at the end of the temporary period.⁶

The DCSS has framed the new setup this way: “low-income parents with child support debt who must drive to work to keep their jobs and livelihood need not fear losing their license, while those who can pay and won’t still face enforcement actions.”¹

Settling Arrears Owed to the State

If a large share of what you owe is arrears owed to the state because your child received public assistance, Family Code Section 17560 lets the Department of Child Support Services accept an offer in compromise for less than the full amount. The program weighs your income, assets, cost of living, and family size. Local agencies can approve compromises up to $5,000; anything larger requires approval from the DCSS director.¹⁰

The limits matter. The program covers only arrears owed to the government, not support owed directly to the other parent. If you owe current support, you must be current on those payments for a set period before arrears can be compromised. Misrepresenting your finances or missing agreed-upon payments rescinds the deal and brings the full balance back.¹⁰

Whether you qualify for the income-based license protection or not, the practical next step is the same: contact the local child support agency handling your case. They control the list that goes to the DMV, the release once a hold is in place, and any payment arrangement or compromise that resolves the underlying debt.

1
California Department of Child Support Services. California Child Support Services and DMV Release Thousands of Suspended Licenses
2
California Legislative Information. California Senate Bill 1055 – Child Support Enforcement License Suspensions
3
California Child Support Services. Licenses and Passports – Section: Releasing a License Suspension
4
California Department of Child Support Services. Statewide License Release Process and Inter-County Communication of License Release Determinations
5
California Board of Vocational Nursing and Psychiatric Technicians. Potential License Denial or Suspension for Failure to Pay Family Support
6
California Legislative Information. California Code Family Code 17520 – Collections and Enforcement
7
Office of the Law Revision Counsel. 42 US Code 652 – Duties of Secretary
8
Office of the Law Revision Counsel. 11 US Code 523 – Exceptions to Discharge
9
Office of the Law Revision Counsel. 11 US Code 362 – Automatic Stay
10
Justia Law. California Family Code 17500-17560