Connecticut Lawsuit Over Inmate Incarceration Fees Dismissed After Law Change Allows Inmates to Keep $50K and Waives Repayment for Those Pardoned

In Connecticut, the state has the right to recover the costs of incarceration from former inmates within 20 years of their incarceration. The state sets the daily repayment rate at $249, totaling $90,885 annually. Under this law, the state can claim funds from inheritances, civil lawsuit awards, or legal settlements to cover these incarceration costs.
Many people expecting a life changing inheritance after a loved one’s passing are shocked when they see a lien placed on their funds.
Funds gifted by family members, intended to support socioeconomically disadvantaged felons and former inmates, are often seized, undermining opportunities for economic advancement and reinforcing cycles of generational poverty and class disadvantage.
The Lawsuit
The state of Connecticut and three former inmates have agreed to dismiss a proposed class action challenging a 1997 law that permitted the state to charge nearly $118,000 annually for incarceration, reportedly resulting in the highest “pay-to-stay” fees in the country.
This decision, documented in an Oct. 6 stipulation, came after Connecticut filed a motion in September to dismiss the case. In that motion, the state indicated it would cease recovering funds from the estates designated for the three plaintiffs, thereby making the lawsuit unnecessary.
The three plaintiffs filed their lawsuit in March 2022, aiming to represent all individuals impacted by the pay-to-stay law. However, according to David A. Slossberg of Hurwitz Sagarin, a court ruling mandated individualized assessments for each incarcerated person’s case, making class certification nearly impossible.
The latest complaint, a third amended filing submitted on July 9, requested the court to rule the pay-to-stay statute unconstitutional under the Eighth Amendment’s prohibition on excessive fines. Additionally, it sought to cancel the debts owed by the three plaintiffs.
The litigation took a major turn in 2022 when the Connecticut General Assembly amended the pay-to-stay law, exempting the first $50,000 of an incarcerated person’s assets and protecting civil judgments awarded to former inmates from state collection. The amendment also stipulated that individuals who receive a pardon are not required to repay the state.
“I trust … that if the law has been narrowed as the attorney general claims, then the attorney general — in his capacity as a legal counselor to state agencies and officials … will make clear that previously filed liens and other claim enforcement efforts should be withdrawn against those prisoners who are no longer within the scope of the statute,” Judge Meyer told the state.
The Law Change
Now Connecticut allows former inmates to keep the first $50k of their inheritance. Additionally, ex-cons who received pardons are no longer liable to pay back the state.
Former inmates who pass away also are allowed to pass on inheritances for their spouses and children’s support. Anything not used for family support can be taken by the state.
If you’re a former inmate worried about your inheritance get a pardon today, and make sure your familys estate plan is in order.