The US Treasury can now collect federal debts more aggressively, with fewer restrictions

The US Treasury is updating its rules for collecting federal debts, making it easier to use a program that intercepts payments to debtors. This means the government can now take money from tax refunds, federal wages, and other payments more flexibly to recover debts owed to it.

The Treasury Offset Program has been a powerful tool for the government to recover billions in overdue federal debts. This rule change removes some self-imposed restrictions, allowing the Treasury to use its existing authority more broadly. It means more money will be recovered from people who owe the government, and fewer debts will be written off.