Washington, DC (January 20, 2026) — In a landmark 9-0 ruling on January 20, the Supreme Court of the United States curbed the government’s ability to keep individuals in a permanent "debt-trap." In Ellingburg v. United States (No. 24-482), the Court ruled that federal restitution is “plainly criminal punishment.”
The National Association of Criminal Defense Lawyers (NACDL), which filed an amicus brief in support of petitioner Holsey Ellingburg, Jr., hailed the decision as a definitive rejection of the "legal fiction" that restitution is a mere civil remedy. The ruling means the government can no longer retroactively hike interest or extend payment deadlines on old cases, effectively moving the goalposts on people who have already served their time.
Writing for the Court, Justice Kavanaugh clarified that because restitution is a penalty for a crime, it must follow the same Constitutional rules as a prison sentence.
The Human Cost of "Shadow Sentences"
Mr. Ellingburg, whose case led to the unanimous decision, saw a $7,500 debt nearly double due to interest added decades after his original conviction. The ruling validates the findings of the NACDL’s recent report, "Empty Pockets and Empty Promises: How Federal Restitution Law Fails Everyone," which exposes a bureaucratic system that often prioritizes punishment over actual restoration.
“For many, the end of a prison sentence is just the start of a second, invisible sentence,” said Andrew Birrell, NACDL President. “We are talking about people who have served their time but are still barred from renting an apartment, getting a driver’s license, or even opening a bank account because of a debt they can never hope to pay. The Supreme Court finally called this what it is: punishment. When courts are forced to impose enormous debt on people with no income, it doesn't help victims or build stronger communities—it just deprives people who have served their sentences of the opportunity to rebuild their lives.”
Key Findings: A System Squeezing Blood from a Stone
The NACDL report highlights why the Supreme Court’s ruling is a critical turning point for the $110 billion federal restitution system:
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The $100 Billion Mirage: The government is chasing over $110 billion in restitution, yet the GAO admits $100 billion of that is uncollectible.
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Impossible Math: The average federal restitution order is $3.3 million. For someone returning home from prison, this is a life sentence of poverty, not a path to rehabilitation.
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Victimless Restitution: In roughly 30% of cases, there was no actual financial loss to a human being or business, yet massive payments were still mandated by rigid federal laws.
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Disproportionate Debt: In cases with multiple defendants, courts do not apportion restitution according to culpability, so peripheral players end up owing the same amount as the masterminds.
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Corporations over People: Most collected money doesn't go to families in need; it goes to government agencies and massive corporations.
Restoring the Constitution
NACDL Executive Director Lisa Wayne emphasized that the ruling strikes a blow against the "civil remedy" label that the government has used to bypass Constitutional protections.
“You can’t just slap a ‘civil’ label on a penalty to bypass the Constitution and keep people under the government’s thumb forever,” said Lisa Wayne, NACDL Executive Director. “This ruling is a victory for the rule of law and for the thousands of individuals who have been shackled by debt long after their prison cells were opened. We have finally recognized that you cannot separate restitution from the Constitution. It is time for a system that offers true restoration and dignity, rather than a permanent cycle of despair.”
Contacts
Jonathan Hutson, NACDL Senior Director of Public Affairs and Communications, 202-480-5343 or jhutson@nacdl.org
The National Association of Criminal Defense Lawyers is the preeminent organization advancing the mission of the criminal defense bar to ensure justice and due process for persons accused of crime or wrongdoing. A professional bar association founded in 1958, NACDL's many thousands of direct members in 28 countries – and 90 state, provincial and local affiliate organizations totaling up to 40,000 attorneys – include private criminal defense lawyers, public defenders, military defense counsel, law professors and judges committed to preserving fairness and promoting a rational and humane criminal legal system.
