Gov. Walz signs executive order stopping garnishments on COVID-19 relief funds

Minnesota Gov. Tim Walz signed Executive Order 20-50 Monday, which stops the garnishment of COVID-19 relief funds by creditors and debt collectors.

According to a release from the governor’s office, the order will allow Minnesotans to use the funds on their immediate needs during the pandemic, rather than the funds being automatically intercepted.

Under the order, “Recovery Rebates must be deemed to be ‘government assistance based on need’ under Minnesota Statutes 2019, section 550.37, subdivision 14 (“Government Aid”), making them exempt from all claims—except claims for Domestic Support Obligations—by creditors.” Domestic-support obligations include child and spousal support. The executive order also suspends all new consumer-debt garnishments for the duration of the peacetime emergency.

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“COVID-19 presents an unprecedented challenge for our state. This Order will help alleviate the financial burden Minnesotans are facing, allowing them to pay rent and put food on the table,” Walz said in a statement. “This action will help ensure the COVID-19 support that local, state, tribal, and federal governments provide will go where it is needed most and directly improve Minnesotans’ lives.”

“This public health crisis falls hardest on Minnesotans who were already in crisis,” Lt. Gov. Peggy Flanagan said. “This Executive Order ensures that relief funding goes toward helping folks take care of themselves and their families first during this unprecedented time so that we can all stay safe and make it through together.”

Attorney General Keith Ellison had suggested the governor adopt this order.

“Allies and I proposed this Executive Order to Gov. Walz because of the real threat that debt collectors could make that struggle even harder on Minnesotans — who are already suffering from too much consumer debt — by garnishing payments that are supposed to help them afford their lives during the pandemic. I thank Governor Walz for immediately understanding the need for this order and acting quickly to turn it into a reality. It will provide Minnesotans with a little more peace of mind that they can afford their lives during this difficult time. This is exactly the kind of step that shows that we Minnesotans are all in this together,” Attorney General Ellison said.