The Trump administration has announced plans to collect up to $6.1 billion in fines from immigrants who have allegedly disregarded deportation orders.
DHS Warns Immigrants Of Lawsuits, Tax Bills, Fines
The Department of Homeland Security has initiated measures to recover these penalties, reported The Wall Street Journal on Tuesday. The government has warned immigrants of potential lawsuits, debt collectors, and substantial tax bills if they fail to pay the fines.
After President Donald Trump returned to office, DHS imposed 21,500 fines aimed at pressuring people to depart the U.S. in a move to alleviate the backlog of the immigration court system. The administration has also introduced a $1,000 “exit bonus” for those who choose to self-deport.
The fines, which can be as high as $998 per day, are typically levied retroactively for five years, amounting to $1,820,352 per person.
“These fines are targeted toward illegal aliens who ignore removal orders and do not honor voluntary departure agreements,” said DHS spokeswoman Tricia McLaughlin. The department also cautioned that immigrants—many of them low-wage workers—could face extra interest charges, late fees, and administrative penalties.
Due to the high fines and threats, some immigrants, fearing the Trump administration’s removal campaign, have chosen to self-deport. Treasury Secretary Scott Bessent has pledged to recover the fines, stating he remains committed to working with ICE to “obtain the funds owed to Americans.”
IRS May Treat Unpaid Fines As Taxable Income, Tax Experts Question The Rationale
Homeland Security may report unpaid fines to the IRS as taxable income, but tax experts questioned the logic, comparing it to waiving a parking ticket rather than forgiving debt. Still, resisting collection is difficult. "Defending against the tax debt takes time, effort and tax knowledge which many people in this situation may lack," said Keith Fogg, emeritus professor at Harvard Law School and former IRS official.
Many fine recipients can't afford to pay, as the penalties far exceed their assets. Immigration lawyer Edward Cuccia said, "Clearly they're not expecting to collect the money, they're just scaring people."
Trump's Strict Immigration Steps Risk Fueling Inflation
This move is the latest in a series of stringent immigration policies implemented by the Trump administration. Earlier in August, the administration ordered officials to deny benefits to immigrants with “anti-American” views, potentially leading to application denials.
Recently, the Secretary of State, Marco Rubio, has halted all new visas issued to foreign truck drivers in the U.S. following a fatal Florida crash.
These policies have been criticized by economists like Mark Zandi, the chief economist at Moody's, who warned that these could potentially cause inflation to rise from the current 2.5% to almost 4% by the start of next year amid supply shortage of labor force.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
