Bill That Prevents Collection Agencies From Garnishing Wages For Mainers With Medical Debt To Become Law

Gov. Janet Mills has signed a bill into law that bans liens on homes and wage garnishments for people with medical debt.

The bill, signed into law on Monday, builds on an existing state law that prevents medical debt from appearing on credit reports.

The new law takes effect in 90 days.

Other states including Texas and Pennsylvania already have a ban on wage garnishments for medical debt.

Maine has enacted a new law (LD 2129) that prohibits medical debt collectors from garnishing wages or placing liens on Mainers’ homes to collect medical debt.

What the new law does

• Bans wage garnishment to collect medical debt from Maine residents.

• Prohibits placing liens on a person’s principal residence for medical debt.

• Builds on an existing Maine law that already keeps medical debt off consumer credit reports.

• Was signed by Governor Janet Mills and will take effect 90 days after signing (signed April 6, 2026).

Legislative context and scope

• The measure is LD 2129, titled “An Act to Strengthen Consumer Protections by Prohibiting Liens on Principal Residences and Wage Garnishments for Medical Debt.”

• Sponsored by Sen. Donna Bailey, it expands Maine’s “landmark” medical debt law enacted previously to address credit reporting.

• The protections apply specifically to medical debt; other types of debt (e.g., taxes, child support, student loans) remain subject to existing garnishment rules.

Relationship to other states and trends

• Other states including Texas and Pennsylvania already restrict wage garnishment for medical debt, and several states have stronger protections limiting liens or garnishment for such debt.

• Maine’s action is part of a broader state-level trend to curb collection practices for medical bills as federal protections have not fully addressed medical debt–related garnishment.