Debt, Race, and Physical Mobility

Researchers estimate that at least 11 million are under a license suspension because of debt owed to the state. In a country where driving is often necessary for work, school, or caregiving, losing access to a license or vehicle has outsized consequences – especially for families of color more likely to share a single car across a household. As a way to avoid the negative effects of carlessness, up to 75 percent of people with suspended licenses continue to drive, often with fear of being pulled over, having to face additional fines and fees, or potential incarceration. 

In this article, the authors outline how these debt policies not only affect people’s finances, but also their physical mobility, with effects falling disproportionately on Black communities. In North Carolina, for example, Black drivers make up 21 percent of the driving population but account for 47 percent of driver’s license suspensions due to failure-to-pay. The author frames this as more than a side effect: by controlling physical mobility through debt policy, the state controls freedom of movement. A suspension functions as a form of punishment for owing money to the state, whether through fines and fees, taxes, unpaid child support, or other obligations.

The authors conclude that research is unclear as to whether these restrictions are effective at improving traffic safety. Some evidence indicates they aren’t even cost-effective, diverting court and law enforcement resources to collect the debt owed. 

To end the harms debt policy has on mobility, the authors propose a two-step process for legislative action. First, states should repeal any laws that restrict driving due to unpaid debt. Second, states should reintroduce driving restrictions only if it advances public safety and as a direct response to a driving-related violation.

Findings

• 37 states have failure-to-pay laws that permit or mandate suspension or revocation of a driver’s license for unpaid civil or criminal fines and fees. 
• 20 states have failure-to-pay laws that result in restrictions on vehicle registration – meaning that a state will not renew or process vehicle registrations for unpaid parking tickets, for example. 
• 34 states restrict driving privileges for people with unpaid state taxes. 
• Every state and the District of Columbia has a process by which the state can or must revoke driving privileges for parents behind on child support. 
• No state has eliminated all debt-based driving restrictions. Every state and the District of Columbia currently enforces debt collection for financial obligations to the state – fines and fees, taxes, or unpaid child support– by restricting or revoking debtor’s drivers license and/or vehicle registrations.   
• Only 12 states and the District of Columbia do not strip driving privileges for failure to pay fines and fees. 

Recommendations

• Repeal all debt-based driving restrictions at the state and federal level.  
• Add driving restrictions as a direct sanction only for violations that are both related to driving and connected to public safety.