An act relating to taking account of a defendant’s ability to pay for purposes of criminal fines, fees, and surcharges

2025-2026 Regular Session Introduced by Kevin Christie and 1 co-sponsor

Prohibits interest on unpaid fines during incarceration and 90 days after release, and lets courts waive or adjust surcharges based on ability to pay.

Read first time and referred to the Committee on Judiciary

Summary of H.926 (2025-2026) – Vermont

Purpose

H.926 proposes to adjust how criminal fines, fees, and surcharges are handled with respect to a defendant’s ability to pay. The bill aims to prevent the accrual of interest on unpaid fines while a defendant is incarcerated and for 90 days after release, and to give courts authority to waive or adjust surcharges for defendants who cannot pay. The underlying policy is that the justice system should deter criminal behavior and promote compliance without imposing financial burdens that exceed a defendant’s ability to pay.

Key Provisions

Interest on unpaid fines during incarceration and post-release: Prohibits the Judiciary from applying interest to any unpaid criminal fines or fees while a defendant is incarcerated and for 90 days after the defendant is released (including cases involving collections agencies).

Ability-to-pay considerations: Grants courts the authority to waive or adjust surcharges when a defendant demonstrates an inability to pay. This recognizes changes in financial circumstances and prioritizes feasible payments.

Policy rationale: Emphasizes that imposing interest or surcharges beyond what a defendant can reasonably pay undermines the goals of deterrence and compliance with the law.

Affected Parties and Impacts

Defendants with outstanding fines/fees: Potential relief from interest accrual during incarceration and the immediate post-release period; potential reductions or waivers of surcharges based on demonstrated inability to pay.

Judiciary and courts: Given new authority to assess ability-to-pay evidence and to adjust or waive surcharges accordingly.

Debt collection processes: Temporary protections against interest accrual during incarceration and the post-release window, including interactions with collections agencies.

Procedural and Timeline Considerations

Effective timing: The bill sets a period during which interest would not accrue (while incarcerated and for 90 days after release). The exact mechanics for determining “inability to pay” and for implementing waivers/adjustments would be governed by court processes and potential rules to be developed by the Judiciary.

Legislative status: Read first time and referred to the Judiciary Committee on March 11, 2026. Co-sponsors: Esme Cole and Kevin Christie.

Practical Implications

Could reduce financial penalties for individuals with limited means, potentially increasing compliance and reducing recidivism risk associated with punitive financial penalties.

May require budgetary and administrative adjustments within the Judiciary to evaluate ability-to-pay claims and implement waivers or adjustments.

If you’d like, I can compare H.926 to similar statutes in other states or provide a plain-language summary for non-legal audiences with examples.