Some States Can Seize Stimulus Checks For Those Who Owe

Some States Can Seize Stimulus Checks For Those Who Owe Restitution Or Have Been Convicted Of A Crime

Roomies, after waiting on our stimulus checks for what seemed like forever, President Joe Biden finally came through in the clutch last month announcing that he was issuing another round of checks after delays. The $1.9 trillion stimulus relief package was signed into law as one of the largest stimulus packages in U.S. history. The innanet was so happy, and folks started cutting up in excitement so much that “Moneybagg Joe” started trending on Twitter! However, it looks like some eligible individuals who were expecting the $1,400 will no longer be receiving them due to their criminal pasts.

According to reports from The Hill, some states can snatch the third installment of stimulus checks from individuals who have been convicted of crimes. This is to provide restitution for victims and their families, according to the Treasury Department. A statement from officials written to Senators Maggie Hassan and Joe Manchin that has been made available today explains what, in addition to restitution, the funds can go towards. “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),” as stated in the statement.

With the new updates, this will not affect any individuals who are currently inmates at various institutions. Senators Hassan and Manchin have urged the Treasury since last month to make the stipulations clear regarding guidance on states’ ability to seize payments for purposes of providing criminal restitution. They also responded to the Treasury in a recent letter writing, “We strongly support state efforts to seize criminals’ Economic Impact Payments and to ensure that these payments benefit families victimized by crime rather than incarcerated criminals.”

To be clear, the Treasury did respond to the Senators and advised that federal law doesn’t prevent the stimulus payments from being garnished by any states or creditors. They also advised that this new communication will be on the IRS’s website under their frequently asked questions page but hasn’t been updated yet.

Roomies, how do yall feel about this?


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