US Codex
Bill
Notes

To impose a fee on certain remittance transfers to fund border security.

S. 3516 · 118th Congress · Dec 14, 2023 · Lineage

A BILL

Section 1 Remittance transfer fee

(a)
In general— Section 920 of the Electronic Fund Transfer Act (relating to remittance transfers) (15 U.S.C. 1693o–1) is amended—
(1)
by redesignating subsection (g) as subsection (h);
(2)
by inserting after subsection (f) the following:

“(g) Remittance transfer fee

“(1) In general—If the designated recipient of a remittance transfer is located outside of the United States, a remittance transfer provider shall collect from the sender of such remittance transfer a remittance transfer fee equal to 10 percent of the United States dollar amount to be transferred.

“(2) Transfer of funds—Not later than 90 days after the date of the enactment of this subsection, the Secretary of the Treasury, in consultation with the Bureau and remittance transfer providers, shall develop and make available a system for remittance transfer providers to submit the remittance transfer fees collected in accordance with paragraph (1) to the Secretary for transfer to the Border Enforcement Trust Fund in accordance with section 3344(b) of title 31, United States Code.

“(3) Penalties

“(A) In general—Whoever, with the intent to evade a remittance transfer fee to be collected in accordance with this subsection, and who has knowledge that, at the time of such remittance transfer, the value of the funds involved in the transfer will be further transferred to a recipient located outside of the United States, requests or facilitates such remittance transfer to a recipient located outside of the United States—

“(i) shall be subject to a penalty of not more than the greater of—

“(I) $500,000; or

“(II) twice the value of the funds involved in such remittance transfer;

“(ii) imprisonment for not more than 20 years; or

“(iii) both penalties set forth in clauses (i) and (ii).

“(B) Aiding or harboring an individual conspiring to avoid the fee—Any foreign country that, in the joint determination of the Secretary of Homeland Security, the Secretary of the Treasury, and the Secretary of State, aids or harbors an individual conspiring to avoid the fee collected in accordance with this subsection shall be ineligible, in the discretion of the Secretaries described in this subparagraph—

“(i) to receive United States foreign assistance; or

“(ii) to participate in the visa waiver program under section 217 of the Immigration and Nationality Act (8 U.S.C. 1187) or any other immigration program.”

(3)
in subsection (h)(2), as redesignated—
(A)
in subparagraph (A), by striking “and” at the end;
(B)
in subparagraph (B), by adding “and” at the end; and
(C)
by adding at the end the following:

“(C) for purposes of applying the fee required under subsection (g)(1), does not include payments for valuable consideration.”

(b)
Refundable income tax credit allowed to citizens of the United States for remittance transfer fees—
(1)
In general— Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

“36C. Remittance transfer fees of United States citizens

“In the case of any individual who is a citizen of the United States, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to the aggregate amount of remittance transfer fees paid by such individual under section 920(g) of the Electronic Fund Transfer Act (15 U.S.C. 1693o–1(g)) during such taxable year.”

(2)
Conforming amendments—
(A)
Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by inserting “36C,” after “36B,”.
(B)
Section 1324(b)(2_ of title 31, United States Code, is amended by inserting “36C,” after “36B,”.
(C)
The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item:
(3)
Effective date— The amendments made by this subsection shall apply to taxable years ending after the date of the enactment of this Act.
(c)
Report regarding amount of remittance transfers to each foreign country— The Commissioner of U.S. Customs and Border Protection shall submit an annual report to the Committee on Banking, Housing, and Urban Affairs of the Senate, the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Financial Services of the House of Representatives, and the Committee on Homeland Security of the House of Representatives that describes the aggregate amount of remittance transfers made to each foreign country during the year to which such report relates.

Sec. 2 Border Enforcement Trust Fund

(a)
Establishment— Subchapter III of chapter 33 of title 31, United States Code, is amended by adding at the end the following:

“3344. Border Enforcement Trust Fund.

“(a) Establishment of trust fund—Not later than 60 days after the date of the enactment of this section, the Secretary of the Treasury shall establish an account in the Treasury of the United States, which shall be known as the “Border Enforcement Trust Fund” (referred to in this section as the “Trust Fund”).

“(b) Transfers to Trust Fund

“(1) In general—There shall be deposited into the Trust Fund, from amounts collected as remittance transfer fees under section 920(g) of the Electronic Fund Transfer Act (15 U.S.C. 1693o–1(g)), an amount equal to the difference between—

“(A) the amount of such remittance transfer fees collected after the establishment of the Trust Fund; and

“(B) the amount of credits allowed under section 36C of the Internal Revenue Code of 1986 with respect to such remittance transfer fees.

“(2) Timing and estimates—Amounts described in paragraph (1) shall be deposited into the Trust Fund by the Secretary of the Treasury at least monthly from the general fund of the Treasury on the basis of estimates made by the Secretary of the Treasury. Proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess of, or less than, the amounts required to be deposited pursuant to this subsection.

“(c) Expenditures from Trust Fund—Amounts in the Trust Fund may only be used, consistent with appropriation Acts—

“(1) to employ and train additional U.S. Border Patrol agents;

“(2) to employ and train officers and support staff employed in enforcement and removal operations of U.S. Immigration and Customs Enforcement;

“(3) to plan, design, construct, improve, or maintain barriers along the international border between the United States and Mexico; and

“(4) to plan, design, construct, improve, or maintain detention facilities for aliens residing in the United States without lawful immigration status.”

(b)
Clerical amendment— The chapter analysis for chapter 33 of title 31, United States Code, is amended by inserting at the end the following: