Hogan bans garnishment on latest round of federal stimulus checks

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Gov. Lawrence J. Hogan Jr. (R) banned debt collectors from garnishing Marylanders’ latest round of federal stimulus checks Monday.

Under Hogan’s latest order on stimulus checks, financial institutions have to consider American Rescue Plan stimulus checks as “protected and cannot be subject to a court-ordered garnishment,” according to a release.

“For more than a year now, COVID-19 has caused incredible hardships for the people of our nation and our state,” Hogan said in the release. “This funding is intended to support working families and struggling Marylanders, and we are committed to doing everything possible to protect this much-needed relief for those who need it most.”

Roughly 2.5 million Maryland households will see direct stimulus payments as part of the American Rescue Plan, totaling $6.25 billion, according to an outline of the plan from Senators Chris Van Hollen (D-Md.) and Benjamin L. Cardin (D-Md.). Individuals earning up to $75,000 and joint tax filers earning up to $150,000 will be eligible for the maximum payments of $1,400 for individuals and $2,800 for joint filers. Eligible dependents will also qualify for stimulus checks.

Garnishments for child support are exempt from Hogan’s protections. The executive order mirrors protections Hogan put in place during the first round of federal stimulus payments last April.

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