Amends calculations of interest in civil actions a rate determined by average accepted auction price for last auction of 52 week U.S. treasury bills.

# Summary of Rhode Island Bill: Changing How Interest Is Calculated in Civil Lawsuits

This bill proposes changing the way interest is calculated when someone wins a money judgment in a civil lawsuit in Rhode Island. Currently, when a court orders one party to pay another — whether it's for a personal injury case, a contract dispute, or another civil matter — interest is added to that amount based on a rate set in existing state law. This bill would replace that fixed approach with a variable rate tied to the real-world financial market, specifically the average accepted auction price from the most recent auction of 52-week U.S. Treasury bills (a common type of short-term government bond).

In practical terms, this means the interest rate applied to court judgments would go up or down depending on broader economic conditions, rather than staying at a static rate set by the legislature. U.S. Treasury bill rates are widely used as a benchmark for "safe" interest rates in the economy, so tying the judgment interest rate to them would keep it more in line with what money is actually worth over time.

This change would affect anyone involved in civil lawsuits in Rhode Island — both the people who win judgments and are owed money, and the people or businesses who are ordered to pay. Depending on economic conditions, this could either increase or decrease the amount of interest owed compared to the current fixed rate. The bill was introduced in the Rhode Island House and referred to the House Judiciary Committee, which has recommended holding it for further study, with a hearing scheduled for January 29, 2026.