The FAIR Act of 2025 aims to reform civil asset forfeiture by increasing the burden of proof on the government, ensuring legal representation for those who cannot afford it, and requiring forfeiture proceeds to go to the Treasury General Fund instead of law enforcement agencies. This bill also addresses structuring transactions to evade reporting requirements, adding stipulations regarding probable cause hearings for property seizures related to violations, and requiring the government to specify the sources of forfeited funds.
Rand Paul
Senator
KY
The "FAIR Act of 2025" aims to reform civil asset forfeiture laws by increasing protections for property owners, requiring the government to meet a higher burden of proof, and ensuring that forfeited assets are deposited into the Treasury's General Fund instead of being retained by law enforcement agencies. The bill also addresses structuring transactions to evade reporting requirements, adding stipulations to what constitutes a violation and requiring probable cause hearings for seized property. These changes apply retroactively to ongoing and future civil forfeiture cases.
FAIR Act of 2025: New Bill Overhauls Civil Asset Forfeiture, Boosts Property Owner Rights
The "Fifth Amendment Integrity Restoration Act of 2025," or FAIR Act, significantly reforms civil asset forfeiture laws. This bill shifts the balance of power, making it harder for the government to seize property and providing more protection for property owners. The core purpose is to restore due process rights under the Fifth Amendment and prevent abuse in civil asset forfeiture proceedings.
Leveling the Legal Playing Field
The FAIR Act makes several key changes. First, it raises the bar for the government to seize your property. Instead of needing just a "preponderance of the evidence" (basically, more likely than not), the government now needs "clear and convincing evidence" that your property was connected to a crime. (SEC. 2). It also requires the government to prove that the property owner intentionally used the property for illegal activities, or knowingly consented/was willfully blind to its illegal use. For example, if a renter uses a landlord's property for illegal activities without the landlord's knowledge or consent, it's now significantly harder for the government to seize that property. The bill also speeds up the process, giving individuals just 30 days (down from 90) to file a claim after a seizure (SEC. 2). Crucially, if you can't afford a lawyer, or if the cost of legal representation is more than the seized property's value, the court can appoint one for you (SEC. 2).
No More 'Policing for Profit'?
One of the biggest changes is how forfeiture cases are handled. The FAIR Act requires all forfeitures to go through a judicial process – meaning a judge has to be involved (SEC. 2). Federal agencies can no longer conduct "nonjudicial forfeitures" on their own (SEC. 2). This adds a layer of oversight that was previously missing. Furthermore, all proceeds from forfeited property now go directly to the Treasury's General Fund (SEC. 3 & 4). This aims to eliminate any incentive for law enforcement to seize property simply to generate revenue. For example, imagine a small business owner whose cash is seized under suspicion, but they've done nothing wrong. This bill makes it harder for that seizure to happen and removes the direct financial benefit to the seizing agency.
Protecting Against Evasion Loopholes
The bill also addresses financial reporting requirements. It specifically targets those who structure transactions to avoid reporting requirements, but now it clarifies that this only applies to funds "not derived from a legitimate source." (SEC. 5). Plus, if your property is seized because of an alleged violation of these reporting requirements, you're entitled to a court hearing within 14 days to determine if there's probable cause for the seizure. If not, your property must be returned (SEC. 5). These changes apply to any cases ongoing or starting after the Act is enacted, and to any money received from forfeited property from that date forward (SEC. 7). The FAIR Act represents a major shift, providing significant new protections and ensuring greater judicial scrutiny in civil asset forfeiture.