Eighth Circuit: Ex-Inmates Can Sue Over Daily Iowa Jail Fees

3 min readSources: Courthouse News

The Eighth Circuit ruled ex-inmates may pursue claims that daily $95 jail fees violate due process rights.

Why it matters: This ruling expands avenues for challenging jail fee policies, signaling legal risk for county governments and shaping defense strategy for law firms handling similar claims. Legal teams should review policies for compliance with due process to prevent costly litigation.

  • On May 20, 2026, the Eighth Circuit revived a lawsuit against Black Hawk County, Iowa, for collecting $95 per day from ex-inmates without post-deprivation hearings.
  • The unanimous panel held that former inmates have a protected property interest in funds taken through these fees, allowing constitutional due process claims.
  • Black Hawk County allegedly collected nearly $600,000 in jail fees over two years, with the ACLU arguing that much of the money funded non-essential amenities for staff, not jail costs.
  • Inmates were reportedly pressured to sign 'pay-to-stay' agreements as a release condition, often with little understanding or opportunity to contest the charges.

The Eighth Circuit Court of Appeals decision on May 20, 2026, affirmed that former inmates of Black Hawk County Jail in Iowa can challenge the county’s practice of charging $95 per day in jail fees. Plaintiffs allege these fees were imposed without a fair process to contest the charges after release, raising due process concerns.

  • The class action alleges Black Hawk County officials required inmates to sign 'pay-to-stay' agreements—contracts obligating payment for each day served—as a condition of release, with limited explanation or clarity.
  • In the two-year span from July 2021 to July 2023, the county collected nearly $600,000 in fees. According to the ACLU, a portion of this revenue went to staff perks such as cotton candy and laser tag, rather than direct jail operating costs.
  • Jennifer Bennett, counsel with Public Justice’s Debtors’ Prison Project, argued, "The government collected money from those plaintiffs after they were released from custody. And we have allegations in the complaint that the government provides no opportunity to be heard after the deprivation of property."
  • The Eighth Circuit, in a unanimous opinion, recognized a post-release due process right, stating that these fees implicate protected property interests under the Fourteenth Amendment.

The decision comes amid growing national scrutiny over 'pay-to-stay' jail fee policies, which civil liberties advocates say disproportionately impact low-income and vulnerable populations. For counties and their legal advisors, the ruling increases the importance of ensuring constitutionally sound processes for the imposition and collection of such fees.

Law firms and corporate legal departments representing municipalities should prepare for potential upticks in litigation and compliance reviews triggered by this precedent.

By the numbers:

  • $95 — daily fee charged by Black Hawk County to each inmate
  • $600,000 — total jail fees collected by the county between July 2021 and July 2023
  • May 20, 2026 — Eighth Circuit issued the decision

Yes, but: The court did not find the jail fees themselves unlawful—only that due process claims by ex-inmates deserve consideration; actual relief for plaintiffs remains uncertain.

What's next: Black Hawk County faces renewed litigation in district court; similar lawsuits may be filed in other jurisdictions relying on the Eighth Circuit precedent.