house resolution no.247

Rep. Hope offered the following resolution:

A resolution to memorialize the United States Department of the Treasury to use its rulemaking authority to exempt Coronavirus Aid, Relief, and Economic Security (CARES) Act stimulus payments from garnishment by creditors and debt collectors.

Whereas, The novel coronavirus (COVID-19) pandemic has caused an unprecedented situation in the United States. In order to combat the spread of the virus, drastic steps have been taken including the closure of all non-essential businesses and ordering residents to stay at home whenever possible; and

Whereas, These efforts have caused severe financial stress for Americans. As many businesses have been forced to temporarily close, millions of Americans have seen their sources of income disappear. In Michigan, more than one million residents have filed for unemployment since the crisis began; and

Whereas, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help Americans during this extraordinary time. The aid provided by the act includes direct stimulus payments to Americans from the United States Department of the Treasury; and

Whereas, Millions of families are relying on these payments to make ends meet during the crisis. As Americans face the sudden loss of their income, the stimulus payments will prove critical in meeting necessary expenses, including rent, utilities, and food; and

Whereas, Under the CARES Act, these stimulus payments may be subject to garnishment by creditors or debt collectors, reducing or eliminating the amount available for paying necessary expenses. Allowing these payments to be garnished would harm American families who are relying on them and undermine the intent of the CARES Act; and

Whereas, The United States Department of the Treasury has the power to exempt these stimulus payments from garnishment. The CARES Act allows the department to issue regulations or guidance necessary to implement it. This includes the ability to designate CARES payments as exempt from garnishment; now, therefore, be it

Resolved by the House of Representatives, That we memorialize the United States Department of Treasury to use its rulemaking authority to exempt Coronavirus Aid, Relief, and Economic Security (CARES) Act stimulus payments from garnishment by creditors and debt collectors; and be it further

Resolved, That copies of this resolution be transmitted to the United States Secretary of the Treasury and the members of the Michigan congressional delegation.