All About Cash Bail

In the past week, there has been a growing number of calls to support bail funds. As police officers are arresting protesters across the country, the money is much needed to help release people from jail. 

But bail funds — and cash bail itself — have been around for a long time. While this issue has been called to the forefront, we thought it would be useful to dive a bit deeper into what bail is, how it disproportionately affects Black folks, and what this means from a personal finance perspective. 

This is by no means a complete exploration of the bail system and its function in the United States. I hope that you take the time to read through the linked source material to learn more. 

What is bail? How does it work in the United States?
Bail allows for the temporary release of a person who is awaiting trial. In the United States, after someone is arrested, a judge often sets cash bail, which if the person can pay, they are allowed to go home while they await trial. 

According to The Bail Book, the United States is one of two countries in the world that has a bail system that requires individuals who have not been convicted of a crime to pay money to be freed. 

As long as an individual shows up to court, they will get the money back. But they have to have the money in the first place to be able to go home. So folks are forced to sit in jail, many of whom are innocent, awaiting trial. According to The Bail Book, this has driven up jail growth by 95 percent since 2000. 

Bail is applied at a judge’s discretion. They get to choose whether to charge it and how high it should be. One study from researchers at Indiana State University and the University of Louisville has shown that being Black increases one’s likelihood of being required to pay bail for release. 

Black people are also more likely to be arrested, according to the Sentencing Project. So, cash bail affects the Black community in a disproportionate way, essentially acting as another tool of white supremacy.

What are bail bonds? 
When someone cannot afford to pay their own bail, they may reach out to a bail bond agent. A bail bond agent usually charges the individual 10 percent of their bail and covers the rest, according to NOLO. The bail bond agent then keeps that 10 percent charge after bail is returned. 

What does this all mean from a personal finance perspective?
We know that many Americans cannot cover an unplanned $400 expense. So when bail is set, even in the sub-$1000 range, most people cannot afford to pay it. They go to bail bonds agents, who charge that 10 percent fee. Ten percent of $1000 is still $100. If you have less than $400 saved, this eats up a major chunk of your savings. 

A Black personal finance Instagrammer, For Better or Worth, brought research to the forefront this week that shows that there is a massive difference in wealth, income, and unemployment for Black Americans versus white Americans. 

We knew this, but the research from the Senate’s Joint Economic Committee, the Institute for Policy Studies, and Duke University is important to learn from anyway. 

Requiring Black Americans to pay bail more often than other populations presents yet another personal finance challenge on top of those highlighted in this research. 

How do bail funds help? 
Bail funds aim to eliminate the need for bail bonds by using donated money to free people who have been jailed. They are especially important during the pandemic: as protestors get arrested, they’re being held in cramped spaces that can accelerate the spread of COVID-19. 

We should think of bail funds like a band-aid though. They’re better than bail bonds, but they’re not better than the elimination of bail altogether. 

Check out this Ted Talk for details on alternative options to bail.