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Oregon Governor Protects COVID-19 Rebates From Garnishment

Dated Apr. 23, 2020

SUMMARY BY TAX ANALYSTS

Oregon Gov. Kate Brown (D) issued an executive order that protects COVID-19 rebates from the Coronavirus Aid, Relief, and Economic Security Act from garnishment in an effort to ensure the funds are used for their intended purpose and do not go to debt collectors.

Governor Kate Brown Issues Order to Protect Oregonians from Garnishment of CARES Act Recovery Rebate Payments

April 17, 2020

Portland, OR — Governor Kate Brown today issued Executive Order 20-18, preventing creditors or debt collectors from garnishing federal CARES Act recovery rebate payments. The order corrects an oversight in the federal legislation, ensuring that Oregonians can use the funds for their intended purpose: covering the costs of essential needs during the COVID-19 public health crisis.

“Many Oregonians, through no fault of their own, are struggling to pay their bills, their rent, or even buy essentials like groceries and prescription drugs,” said Governor Brown. “These recovery checks were meant to provide relief, not reward debt collection agencies for preying on Oregonians who have lost their livelihoods due to the COVID-19 pandemic.”

The order affords Oregonians receiving CARES Act rebates the same protection from garnishment as the recipients of other government payments, such as Social Security, disability, and veterans' benefits. The protection does not extend to garnishments due to criminal actions requiring restitution or civil judgments based on a criminal conviction. As provided by the CARES Act, past-due child support may still be deducted before rebates are deposited in bank accounts.

The Oregon Department of Justice will provide further guidance on this order as necessary.

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