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Home»Finance News»New Rules On Federal Inmate Financial Responsibility Program
Finance News

New Rules On Federal Inmate Financial Responsibility Program

December 22, 2024No Comments5 Mins Read
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Federal prisoners often supplement their meager prison job earnings with support from friends and … [+] family on the outside. That may be about to stop for many.

AFP via Getty Images

The amount of money that federal prisoners have in their commissary accounts came under scrutiny when it was reported that some prisoners, namely Larry Nasser and R. Kelly, had tens of thousands of dollars in their account. The money, many believed, should not be used on improving the comforts of prison when there are victims to be compensated. As a result, the Federal Bureau of Prisons (BOP) and Department of Justice proposed supplemental notice of a proposed rule in how it handles the Inmate Financial Responsibility Program (IFRP).

The IFRP has been around since 1987 and was meant to encourage federal prisoners to pay financial obligations and learn financial planning skills, such as prioritizing payment to victims. While IFRP is stated as being voluntary while incarcerated, there are penalties for not participating such as loss of commissary and benefits of participating in prerelease custody programs such as halfway house.

Nasser and Kelly both of whom are currently serving sentences that will keep them in prison for life, had large sums of money in their accounts that was shielded from victims and financial obligations they may have. However, according to the Prison Policy Initiative, many prisoners struggle to purchase basic hygiene supplies, stamps, and other necessities of incarcerated life—thanks in part to the low wages they made before entering prison and the mere pennies they earn in prison jobs. In the BOP, prisoners use their commissary funds to supplement their diets with higher quality proteins, such as canned tuna and chicken, that is limited in the standard food offerings.

For those with restitution orders of court fines, the BOP suggests a minimum for participation in the program of $25/quarter, an affordable amount for many. However, prison jobs routinely pay only pennies and for those who are in prison for decades, loss of contact with family/friends can result in a drop in funding as the sentence progresses.

Among the most significant change is a requirement that all prisoners participating in IFRP contribute 75 percent of funds received from non-BOP sources (‘‘outside’’ or ‘‘community’’ deposits) toward the program. Federal prisoners are allowed to spend $360/month that is used for things like phone calls, emails, clothing and basic hygiene. There are few jobs in the BOP that pay that kind of money, leaving friends and family to supplement their accounts.

It is typical of the BOP to punish many at the expense of the actions are a few. Lockdowns, ubiquitous across the BOP, often occur when one or small group of prisoners are involved in contraband or some violation of the institutional rules. This sweeping change to commissary appears to be in line with that mentality. While not condoning the money received and controlled by big-name inmates at the expense of victims, money for commissary is a necessity in prison and reduces the costs to taxpayers. This problem of stockpiling funds in commissary accounts is also not a widespread issue. Acording to the Washington Post, roughly 20 of the over 150,000 people incarcerated in BOP facilities had $100,000 or more in their accounts.

According to the Fines and Fees Justice Center, a non-profit group whose mission is to eliminate the fines and fees that distort justice, families of incarcerated individuals also face their own financial struggles. According to a survey of formerly incarcerated people and their families, 63 percent of respondents reported that family members were primarily responsible for covering conviction-related costs. The same survey also shows that nearly half of working families could not afford these costs of incarceration but made sacrifices to aid their loved ones.

BOP employees also benefit from the proceeds of commissary accounts. According to a BOP Freedom of Information request, the BOP paid staff from the proceeds to the tune of $49,514,506 in payroll and $32,522,034 in benefits. Those positions are for those who run recreational programs and operate the support for the commissary program. Prisoners get recreational gear and items that promote the social good of the institution.

If funds are going to be taken from prisoners, one can be sure funds will drop sharply. However, prisoners will not take this lightly and there will be an incentive to ramp up the flow of contraband into the institution. Prisoners who do not have restitution requirements and are not required to participate in IFRP, will become targets to purchase items for other prisoners. In short, this move will do more to destabilize the institution and put more pressure on correctional staff that is currently understaffed.

That the DOJ-BOP had a supplemental request for comment on the program tells you that they are carefully reviewing their options. The BOP has been under tremendous pressure from Congress, prisoners, advocacy groups, the union representing corrections officers and the general public to improve the way its prison facilities are operated. This new rule on IFRP, if it were to go into effect, would go little to improve the operation of its facilities.

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