Unclaimed Money Returned Directly to Pennsylvanians: A Significant Victory for State Treasurer Stacy Garrity

Starting next year, Pennsylvania will take a significant step in returning unclaimed money directly to the people it belongs to, rather than requiring them to first file a claim with the state Treasury. This change, which was signed into law by Democratic Gov. Josh Shapiro, marks a major election year victory for Republican State Treasurer Stacy Garrity, who proposed the legislation last year.

Unlocking Millions in Unclaimed Funds for Pennsylvanians

Addressing the Unclaimed Property Challenge

Pennsylvania currently holds over .5 billion in unclaimed property, including money from inactive bank accounts, uncashed checks, and unused gift cards that by law must be turned over to the state. While the original owners never lose their right to file a claim with the state Treasury to get their money back, many are unaware that this money is waiting for them. The new law aims to address this problem by allowing the state Treasury to proactively return some unclaimed money without requiring people to file claims.

Streamlining the Return Process

The new law will apply to unclaimed amounts under 0 owed to a single person. For larger amounts, over 0, or for property owed to more than one person, or to businesses and nonprofits, claims will still be required. The state Treasury estimates that more than 70,000 people will receive money back in 2025 through this new process. While the overall amount of money returned will be relatively small, at around 0,000 in the first fiscal year, it represents a significant step forward in getting unclaimed funds back into the hands of Pennsylvanians.

Prioritizing Unclaimed Property Recovery

Since taking office in 2021, Stacy Garrity has made unclaimed property a top priority, overseeing a major upgrade to fast-track claims that began under her predecessor, and directing the agency to pay some claims via direct deposit, instead of only by paper checks. The new law is a testament to Garrity's commitment to this issue and her efforts to streamline the process and return more unclaimed money to its rightful owners.

Balancing Accessibility and Expansion

The initial 0 threshold for automatic returns was a compromise between Garrity's original proposal of ,000 and the 0 threshold advocated for by House Democrats. While some advocates argue that the 0 limit is too low, Garrity has noted that "nothing prevents us from increasing the limit in the future." This measured approach allows the program to demonstrate success before potentially expanding the threshold, ensuring that the process is effective and efficient for both the state and its citizens.

Bipartisan Support and Political Implications

The bill to allow the change passed the state legislature in July with unanimous support, a rare feat in the current political climate. This bipartisan cooperation reflects the widespread recognition of the importance of returning unclaimed funds to Pennsylvanians. The law's passage also represents a significant election year victory for Garrity, who will face Democrat Erin McClelland in the November election for state treasurer. The successful implementation of this program could bolster Garrity's reputation and appeal to voters, while also providing tangible benefits to thousands of Pennsylvanians.