Federal Judge Temporarily Halts Massive Civil Fines Against Undocumented Migrants

A federal judge has issued a ruling blocking the Trump administration from assessing and collecting steep fines against migrants who failed to leave the United States voluntarily after receiving final deportation orders. US District Judge George O’Toole issued the decision on Monday, resolving a class-action lawsuit brought by two affected individuals and the Immigrant Legal Resource Center.

The legal challenge centers on a rule created by the Department of Homeland Security in June 2025. That rule altered the process for civil monetary penalties, allowing the government to penalize individuals who unlawfully stayed in the country after receiving removal instructions. The administration relied on a provision of the 1996 Illegal Immigration Reform and Immigration Responsibility Act to levy fines of $998 per day, retroactively applied for up to five years.

The Scale of the Fines and Impact on Families

Under the administration’s interpretation of the law, penalties quickly grew to extreme amounts, including a $1.8 million levy against one of the plaintiffs. By July 2026, the Department of Homeland Security had issued more than 103,000 total fines amounting to approximately $84 billion.

Judge O’Toole found that these penalties created an immense financial burden on people already living in precarious positions. Because the fines far exceeded what the targets could pay, families faced severe collection efforts such as wage garnishment, frozen bank accounts, seized homes and vehicles, and adverse future admissibility determinations.

Legal Grounds for the Court’s Decision

The court granted a motion to stay the proceedings in favor of the plaintiffs, determining that their claims under the Administrative Procedure Act were likely to succeed. Specifically, the judge concluded that the administration violated the law by failing to provide a proper notice-and-comment period before enacting the rule.

In his opinion, O’Toole emphasized that the balance of equities weighed heavily in favor of the plaintiffs. He noted that the threat of losing basic assets and facing aggressive federal collection suits outweighed the government’s interest in enforcing the monetary penalties under the challenged rule.

What This Means for Affected Individuals

For migrants facing severe financial penalties for failing to depart voluntarily, the ruling temporarily halts the government’s ability to collect or assess these exorbitant debts. People targeted by the Department of Homeland Security under this specific rule no longer face immediate threats of asset seizures, wage garnishment, or tax agency reports while the stay remains in place.

However, because immigration policies and enforcement actions frequently shift through subsequent court actions, individuals navigating removal orders or receiving large federal penalties should monitor ongoing legal updates carefully. Consulting with an immigration attorney or legal aid organization can help affected families understand their rights and the status of class-action proceedings.

This article is general information based on JURIST and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 7, 2026.