Most money that police confiscate ends up back in law enforcement budgets. After a legal process called asset forfeiture, federal agencies and the state or local departments that helped with an investigation can keep the cash and spend it on equipment, vehicles, training, and operations. The Department of Justice’s Asset Forfeiture Fund alone took in roughly $2.3 billion in fiscal year 2025.1Department of Justice. Asset Forfeiture Program – Total Receipts and Expenses The money doesn’t flow automatically, though. The government has to clear specific legal steps first, and the person it was taken from has a short window to object.
Where the Money Goes After Forfeiture
Once a forfeiture is final, federal law lets the Attorney General transfer the proceeds to any state or local agency that helped with the investigation.2Office of the Law Revision Counsel. 18 U.S. Code 981 – Civil Forfeiture This program is called equitable sharing. A local police department that assisted on a federal case can receive up to 80 percent of the forfeited value. The federal government keeps at least 20 percent, and in federally led cases its share is typically larger.3Department of Justice. Guide to Equitable Sharing for State, Local, and Tribal Law Enforcement Agencies
Agencies spend the money on things like patrol vehicles, body armor, surveillance equipment, computers, and overtime pay. There is a catch: the money has to supplement an agency’s existing budget, not replace it. Spending forfeiture funds on expenses the department would normally cover out of its regular appropriations is explicitly prohibited.3Department of Justice. Guide to Equitable Sharing for State, Local, and Tribal Law Enforcement Agencies
What Agencies Can’t Spend Forfeiture Money On
The DOJ’s equitable sharing rules spell out a long list of prohibited uses. Regular salaries and benefits are off-limits, with narrow exceptions for task force replacement officers and school resource officers that require annual pre-approval. Agencies cannot use the money to build or expand police stations, jails, or offices. Attorney fees, settlement payments, and other legal costs tied to lawsuits against the department or its officers are also prohibited.
Personal and political spending is barred: campaign materials, gym memberships, non-uniform clothing, and individual membership dues. So are meals (outside declared emergencies), event tickets, and payments to confidential informants.3Department of Justice. Guide to Equitable Sharing for State, Local, and Tribal Law Enforcement Agencies The restrictions are specific because the money is substantial and the temptation to treat it as a slush fund is real.
Equitable Sharing Can Bypass State Protections
Equitable sharing matters for another reason. When a state passes a law requiring a criminal conviction before property can be forfeited, local police can sidestep that requirement by partnering with a federal agency. The seizure then proceeds under federal law, where no conviction is needed, and the local agency still collects up to 80 percent. Some states have tried to close this gap by restricting participation in equitable sharing, but most have not. Where the federal route stays open, local agencies have a direct financial incentive to use it.
How the Money Becomes the Government’s to Spend
Before any of that spending happens, the government has to legally take ownership of the cash. A seizure starts when an officer has probable cause to believe the money is connected to criminal activity. The officer doesn’t need to arrest you or charge you with a crime to take the cash. The seizure targets the money itself.
From there, two legal paths lead to permanent forfeiture, and they work very differently.
Criminal Forfeiture
Criminal forfeiture only happens after a conviction. Once a jury finds someone guilty, the court identifies the assets tied to the offense and orders them forfeited. No conviction, no forfeiture.
Civil Forfeiture
Civil forfeiture is the one that catches people off guard. Instead of suing a person, the government files a lawsuit against the property. Case names read like “United States v. $50,000 in U.S. Currency.” Because the case targets the money rather than its owner, no criminal conviction is required. The government just has to show, by a preponderance of the evidence, that the cash was more likely than not connected to a crime.4Office of the Law Revision Counsel. 18 U.S. Code 983 – General Rules for Civil Forfeiture Proceedings That’s a 51 percent standard, far below the “beyond a reasonable doubt” bar needed for a criminal conviction.
The Administrative Shortcut
Most cash forfeitures never see a judge. When seized property is worth $500,000 or less, federal agencies can forfeit it administratively.5Office of the Law Revision Counsel. 19 U.S. Code 1607 – Seizure; Value $500,000 or Less The seizing agency publishes a notice, waits for a claim, and if nobody files one within the deadline, the property is automatically forfeited.6Department of Justice. Justice Manual 9-112.000 – Administrative and Judicial Forfeiture Federal policy generally requires at least $5,000 in cash before agencies will pursue a forfeiture, dropping to $1,000 when the owner is being criminally prosecuted for related activity.7Department of Justice. Justice Manual 9-111.000 – Forfeiture/Seizure If someone files a timely claim, the case gets referred to a U.S. Attorney for judicial forfeiture in federal court.
What To Do If Your Money Was Seized
If this happened to you, the clock is already running. The government must send you written notice of the seizure within 60 days. Once you receive it, you typically have 35 days from the mailing date to file a claim. If you never received the letter and the government published notice instead, you get 30 days from the final publication date.8Forfeiture.gov. 18 U.S. Code 983 – General Rules for Civil Forfeiture Proceedings Miss either deadline and the money is automatically forfeited. The strength of your case stops mattering at that point.6Department of Justice. Justice Manual 9-112.000 – Administrative and Judicial Forfeiture
File a claim and the case moves to federal court. The government has to prove the money is connected to a crime by a preponderance of the evidence. If it clears that bar, you can raise the innocent owner defense.
The Innocent Owner Defense
Federal law protects you from forfeiture if you can show you either didn’t know about the criminal activity tied to the money, or that once you found out, you did everything reasonable to stop it.4Office of the Law Revision Counsel. 18 U.S. Code 983 – General Rules for Civil Forfeiture Proceedings Reasonable steps can include notifying law enforcement or revoking someone’s permission to use your property. You don’t have to put yourself in physical danger.
You carry the burden of proof. You must demonstrate innocent ownership by a preponderance of the evidence, which means documentation: bank statements, pay stubs, business records, tax returns. If your cash came from years of saving or a recent property sale, you need proof of that. Simply asserting that the money is clean won’t work.
Attorney Fees
There is no constitutional right to a court-appointed lawyer in civil forfeiture cases. You either hire counsel out of pocket or represent yourself against government attorneys who do this for a living. For many people whose seized cash runs to a few thousand dollars, a lawyer costs more than they would recover. That is a large part of why so many forfeitures go uncontested.
If you fight and win, federal law lets you recover reasonable attorney fees and litigation costs from the government. For cash, you are also entitled to interest, either the actual interest the government earned or an imputed amount based on the 30-day Treasury Bill rate, starting 15 days after the seizure.9Office of the Law Revision Counsel. 28 U.S. Code 2465 – Return of Property to Claimant; Attorney Fees, Costs, and Interest
Deadlines the Government Faces
The government has its own clock. After you file a claim contesting an administrative forfeiture, prosecutors have 90 days to file a formal complaint in court or return the property.4Office of the Law Revision Counsel. 18 U.S. Code 983 – General Rules for Civil Forfeiture Proceedings A court can extend that for good cause, but the government cannot sit on the case and keep your money indefinitely. If the agency fails to send you initial notice within 60 days, it generally loses the ability to forfeit administratively and has to either return the cash or file a judicial action.6Department of Justice. Justice Manual 9-112.000 – Administrative and Judicial Forfeiture
State forfeiture laws vary. The federal rules described here govern federal seizures and any state or local seizure routed through equitable sharing. If your money was taken in a purely state case, your state’s law may give you stronger protections, including, in a few states, a requirement that there be a criminal conviction before any forfeiture happens at all.