States Should Reduce or Eliminate Criminal Fines and Fees, Even Amid Challenging Fiscal
In challenging fiscal landscapes, state and local governments often turn to fines and fees to fill budget shortfalls. In this report from the Center on Budget and Policy Priorities (CBPP), the author argues that the challenging fiscal landscape of 2026 does not justify government reliance on criminal fines and fees for revenue, as it would harm both governments and communities while perpetuating revenue instability. The report also outlines the policy changes that created these fiscal constraints and presents alternative solutions for balancing budgets. CBPP attributes the tough fiscal environment to three main factors: the Republican reconciliation bill that shifted healthcare and SNAP costs to states, the end of pandemic-era federal aid to states, and the tax cuts states enacted over the past five years. As these three revenue streams dwindle, states are faced with a choice between filling funding gaps to maintain healthcare and SNAP programs, or reducing services to cut costs – leaving people without access to healthcare or food benefits. Local governments face similar pressures, mostly due to state-imposed property tax limitations.
The author recommends stable revenue sources, such as progressive taxation on wealthy households and corporations. For states not ready to eliminate fees, intermediate steps include mandating ability-to-pay assessments, requiring data transparency, and establishing indigency standards.
You can read the full text of the report here.
Key findings
- Fines and fees typically represent less than 1 percent of state and local revenue.
- Collection efforts of fines and fees are remarkably inefficient, with some counties spending over 40 cents for every dollar collected.
- Despite fiscal pressures, twenty-seven states have made bipartisan progress to eliminate or reduce criminal legal fees from 2023 to 2025. The report includes a helpful dashboard and appendix of relevant enacted fines and fees legislation.