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Treasury: States Can Seize Stimulus Payments to Provide Criminal Restitution

Submitted by jhartgen@abi.org on

States can seize third-round stimulus payments from those convicted of crimes in order to provide restitution for victims and their families, according to the Treasury Department, The Hill reported. “To the extent permitted by applicable state and local law, amounts paid in the third round of [economic impact payments] may be subject to garnishment by state governments, local governments, or private creditors, as well as pursuant to a court order (which may include fines related to a crime, administrative court fees, restitution, and other court-ordered debts),” a department official said in a letter to Sens. Maggie Hassan (D-N.H.) and Joe Manchin (D-W.Va.) last month. Treasury's confirmation means law enforcement in the states can seize payments directed to individuals convicted of crimes and redirect them to cover debts or fines.