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Financial Services Law Insights and Observations

California executive order exempts Covid-19 assistance payments from garnishment

State Issues Covid-19 California CARES Act

State Issues

On April 23, Governor Newsom issued an executive order which provides that, with certain exceptions, CARES Act financial assistance payments and any other federal, state or local government assistance provided to individuals in response to the Covid-19 outbreak are exempt from garnishment, attachment, levy, or execution. The exemption extends to assistance funds placed into any account. The executive order also prohibits financial institutions from executing any lien or exercising any right of setoff against these funds.

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