US pursues deportees abroad for hundreds of millions in unpaid fines

• The US government is hiring private firms to recover over US$423 million in fines from more than 66,300 deported migrants in Mexico, Honduras, and Guatemala.
• Legal and practical challenges exist, as deportees may lack resources or access to US payment systems, and foreign governments like Mexico are not involved.
• The fines are part of a broader Trump-era strategy to penalise immigrants, with potential effects on future immigration cases and ongoing efforts to enforce payments.

WASHINGTON - The Trump administration is hiring private contractors to track down deported migrants who it claims owe the US government hundreds of millions of dollars in unpaid penalties, a move that will test how far its immigration crackdown can reach across borders.

US Customs and Border Protection says it is trying to recover about US$423 million (S$534.92 million) in fines and fees from more than 66,300 people who have been removed from the US.

In August, the agency agreed to pay as much as US$36 million to four firms to find people in Mexico, Honduras and Guatemala it claims are in arrears, according to a notice posted on a government procurement website.

The initiative marks a striking expansion of US President Donald Trump’s immigration enforcement efforts that would extend the government’s power over people it has already expelled from the US.

However, collecting could be challenging.

It’s unclear whether the US can legally require people who have been removed from the country to pay.

The contract notice doesn’t explain how the US could compel payments or what role, if any, the governments of Mexico, Honduras and Guatemala would have.

Mexico’s immigration agency said that it’s not involved in the initiative. 

“It’s beyond the responsibilities of the Mexican government, for which reason the country’s authorities in the National Institute of Migration do not participate or have knowledge of it,” the agency said in response to questions on Sept 8.

It’s also far from certain whether deportees would be able to pay what the US says they owe.

Many may have limited resources or lack access to a US bank account, which is required to pay the fines, according to payment methods described in federal documents.

In past cases, the US has threatened that unpaid fines could affect future immigration cases.

The contractors may photograph homes or obtain utility bills, employment records or court papers to locate deportees and establish their ability to pay, according to the contract documents.

CBP awarded the two-year contracts in August to Global Recovery Group, The Baptiste Group, Caduceus Inc. and Response AI Solutions, according to federal records.

Each agreement has a maximum value of US$9 million.

The companies didn’t respond to requests for comment.

The amount CBP is trying to collect represents only a small portion of the larger pool of penalties imposed by the US Department of Homeland Security.

From Trump’s return to office on Jan 20, 2025, through July 16, 2026, Immigration and Customs Enforcement, DHS’s enforcement arm, issued more than 103,000 civil fines totalling more than US$84 billion, according to DHS.

By July 16, the government had collected just US$1.2 million.

“Our message is clear: Illegal aliens in the country unlawfully should leave now or face consequences – including financial penalties,” DHS said in a statement.

The fines are based in part on a provision of a 1996 immigration law that allows the government to impose daily penalties on certain people who refuse to leave after being ordered deported.

The authority was rarely used until Trump’s first term, when his administration sent large bills to immigrant families.

The previous administration of President Joe Biden ended that effort in 2021, saying it had proved ineffective and diverted resources from other enforcement priorities.

Trump has now revived the penalties on a far broader scale.

Some immigrants can be fined nearly US$1,000 for every day they remain in the country after being ordered to leave.

Charges can accumulate into the hundreds of thousands, or even millions, of dollars.

US$1 million bills

The fines are part of a wider strategy intended to make remaining in the US increasingly difficult and expensive.

The administration has filed lawsuits to collect unpaid penalties, seized tax refunds and withheld money from wages.

Some immigrants still pursuing legal claims to remain in the US have received bills of US$1 million or more. 

At the same time, the government is offering incentives to people who agree to leave.

Immigrants who register through CBP Home, a mobile-phone application used to arrange voluntary departures, can receive paid travel and cash-in-hand from the government.

Homeland Security has said certain outstanding fines may also be forgiven.

Some deportees are already receiving bills.

Mexican citizens deported in 2026 have received collection letters from CBP at their addresses in Mexico, said Juan Cuellar Torres, director of advocacy at the Kino Border Initiative, a humanitarian organisation that works along the US-Mexico border. 

The fines, typically about US$250, came with a warning that interest could accrue if they were not paid, he said.

The notices also warned that unpaid debts could be considered in future US immigration proceedings, a potentially significant consequence for deportees who later want to apply for a visa or seek permission to return.

They also warned the debts could be turned over to a private collection agency.

David Leopold, an immigration lawyer in Cleveland, called the overseas effort unnecessarily punitive.

“Going into these countries and pursuing folks who have been deported is just one more step in terrorising people for no reason,” Leopold said. “It’s icing on the cake of cruelty.” BLOOMBERG