New Study Highlights $5.1 Billion in Lost Earnings for Texans With Debt-Based Holds on Expired Driver’s Licenses

AUSTIN, Texas—Texans who are unable to renew their expired driver's licenses due to outstanding court debt lose a collective $5.1 billion in annual earnings, a new report from Texas Appleseed reveals. 

Even minor infractions like parking tickets can cost hundreds of dollars, and compounding fines and fees can quickly spiral out of control. If drivers can’t afford to pay them, municipal and county courts may use the Failure to Appear/Pay (FTAP) Program to place a hold on their ability to renew their driver’s license until all court debt is resolved. Just under 700,000 Texans are estimated to have at least one FTAP hold on their license. 

“Without a valid license, it is more difficult to obtain or maintain employment, apply for housing, go to school, access health care, and travel to and from your daily activities,” said Dr. Jennifer Carreon, director of the Criminal Justice Project at Texas Appleseed. “As a result, people who cannot afford to lift the hold on their expired licenses have limited access to opportunity and earning potential, costing a single person between $12,700 and $23,550 annually. By a conservative estimate, the 400,000 Texans who have expired licenses due to this program lose an aggregate of $5.1 billion annually.” 

The report, Driven by Debt: An Updated Analysis of the State’s Failure to Appear/Pay Program, uses updated data to explore the Program’s impact on court collections, warrant issuance rates, and the state’s economy. 

Key Findings

• Participation in the FTAP Program does not significantly increase a court’s revenue collection.
• Municipal courts that participate in the FTAP Program issue warrants at almost four times the rate of courts that do not use FTAP. Rather than using the FTAP Program as an alternative to more severe measures (i.e., warrants), this shows that courts are issuing warrants in conjunction with holds, effectively increasing the punitive measures on drivers.
• Black drivers are disproportionately impacted by the FTAP Program, comprising only 11% of Texas’ driving population but 34% of holds in the FTAP system.
• High-population urban areas experience the most holds and highest annual earnings lost, but rural counties also lose hundreds of thousands of dollars annually. 

These findings prove that the FTAP Program fails to improve court revenue collection and compliance efforts, unduly burdens low-income drivers, and stifles economic growth in Texas. These issues are widespread, impacting Texans in 1,370 municipalities.

"The Program is counterproductive to its purported goal, which is to increase appearance and payment,” said Cole Meyer, policy analyst of the Criminal Justice Project at Texas Appleseed. “It also takes away a crucial tool for securing employment, trapping drivers in a cycle of debt.”

Policy Recommendations

• Repeal the Failure to Appear/Pay Program statewide by passing House Bill 2609/Senate Bill 2085, and lift all existing holds.
• Encourage courts to utilize alternative resolution methods for low-level traffic violations, such as payment plans, community service, jail credit, and waivers for indigency.
• Incentivize participation in the Texas Court Reminder Program, as court reminders have been shown to decrease failure to appear rates by 27%.
• Redesign citations and court summons forms by providing clear, succinct, and detailed information on where and when an individual is to report to court. This has been proven to increase compliance, especially when coupled with clear information on the consequences for nonappearance or nonpayment, and any available options to pay online, in-person, or by mail.

Implementing these data-driven recommendations would promote financial stability for hundreds of thousands of Texans, stimulate economic growth, reduce the administrative burden on local courts, and reallocate taxpayer money into programs that are proven to actually increase compliance and enhance public safety. 

About Texas Appleseed

As one of the most trusted resources for data-driven policy analysis and solutions, Texas Appleseed advocates at the state and local level for fair, just, and equitable laws. Our work has shaped hundreds of laws and positively affected millions of Texans by breaking down barriers through transformative policy solutions. Visit www.TexasAppleseed.org for more information.

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