What This Bill Does
This bill establishes two trust funds to collect money for border security efforts. Money services businesses that handle money transfers to certain countries must pay a 37 percent fee on those transfers. The collected fees get split between reimbursing border states for their security costs and funding federal border security operations.
Who It Affects
Money services businesses (companies that handle money transfers) that send remittance transfers (money sent to people in other countries) to covered countries. Border states that spend money on border security enforcement. The U.S. Department of Homeland Security. The U.S. Department of the Treasury.
Key Provisions
• Money services businesses must impose a 37 percent fee on each remittance transfer to a covered country, with all collected fees submitted to the Treasury (Sec. 2(a)(1)).
• Covered countries are defined as the 5 countries with the most citizens or nationals who unlawfully entered the United States during the previous fiscal year, as identified by the U.S. Customs and Border Protection Commissioner (Sec. 2(a)(3)(A)).
• A Border Security State Reimbursement Trust Fund receives 50 percent of collected remittance fees each fiscal year starting in 2025, and border states can apply for reimbursement of their border security expenses within 30 days of each fiscal year (Sec. 2(b)).
• A Border Security Trust Fund receives the other 50 percent of collected remittance fees and funds technology to detect unlawful crossings, physical barriers at the southern border, and wages for U.S. Border Patrol agents (Sec. 2(c)).
• If the combined total of both trust funds exceeds $50 billion, the excess amount gets permanently cancelled and placed in the Treasury general fund for deficit reduction only (Sec. 2(d)).
What Changes
If this law passes, money transfer companies will begin charging customers a 37 percent fee when sending money to the five countries with the highest number of unlawful entries into the United States. These fees will be split evenly: half going to reimburse border states for their security spending and half funding federal border security technology, physical barriers and Border Patrol salaries. Border states will need to submit receipts to apply for reimbursement starting in 2025.
Important Definitions
Covered country: Each of the 5 countries identified by the U.S. Customs and Border Protection Commissioner as having the most citizens or nationals who unlawfully entered the United States during the previous fiscal year (Sec. 2(a)(3)(A)).
Money services business: Has the meaning given by section 1010.100 of title 31 of the Code of Federal Regulations (Sec. 2(a)(3)(B)).
Border security enforcement measures: Expenditures directly or indirectly used to deter unlawful crossings, detect unlawful activity and entry into the United States, or gain operational control of the southwest border (Sec. 2(b)(4)(D)).
Effective Date
January 1, 2024 (Sec. 2(e))
I
118TH CONGRESS
1ST SESSION
H. R. 672
To establish trust funds relating to border security, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 31, 2023
Mr. MORAN (for himself, Mr. DESJARLAIS, Mr. ELLZEY, Ms. GRANGER, Mr.
BABIN, Mr. GOODEN of Texas, Mr. NEHLS, Ms. VAN DUYNE, Mr.
WEBER of Texas, Mr. CLOUD, Mr. SELF, Mr. LUTTRELL, and Mr. JACK-
SON of Texas) introduced the following bill; which was referred to the
Committee on Homeland Security, and in addition to the Committee on
Financial Services, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To establish trust funds relating to border security, and
for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Border Security In-
4
vestment Act’’.
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SEC. 2. ESTABLISHMENT OF TRUST FUNDS RELATING TO
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BORDER SECURITY.
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(a) ADDITIONAL REMITTANCE TRANSFER FEES.—
3
Section 920 of the Electronic Fund Transfer Act (relating
4
to remittance transfers) (15 U.S.C. 1693o–1) is amend-
5
ed—
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(1) by redesignating subsection (g) as sub-
7
section (h); and
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(2) by inserting after subsection (f) the fol-
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lowing:
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‘‘(g) ADDITIONAL REMITTANCE FEES.—
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‘‘(1) IN GENERAL.—A remittance transfer pro-
12
vider that is a money services business shall impose
13
a fee on each person sending a remittance transfer
14
to a covered country in an amount equal to 37 per-
15
cent of the remittance transfer amount.
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‘‘(2) TRANSFER
OF
FEES.—All fees collected
17
under this subsection shall be submitted to the De-
18
partment of the Treasury for deposit in the general
19
fund, in such form and in such manner as the Sec-
20
retary of the Treasury shall establish by rule.
21
‘‘(3) DEFINITIONS.—In this subsection:
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‘‘(A) COVERED
COUNTRY.—With respect
23
to a fiscal year, the term ‘covered country’
24
means each country identified by the Commis-
25
sioner of U.S. Customs and Border Protection
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•HR 672 IH
as one of the 5 countries that had the most citi-
1
zens or nationals unlawfully enter the United
2
States during the previous fiscal year.
3
‘‘(B) MONEY
SERVICES
BUSINESS.—The
4
term ‘money services business’ has the meaning
5
given that term under section 1010.100 of title
6
31, Code of Federal Regulations.’’.
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(b) BORDER SECURITY STATE REIMBURSEMENT
8
TRUST FUND.—
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(1) IN GENERAL.—There is established in the
10
Treasury a trust fund, to be known as the ‘‘Border
11
Security State Reimbursement Trust Fund’’ (in this
12
section referred to as the ‘‘Reimbursement Fund’’),
13
consisting of amounts transferred under paragraph
14
(2) and any amounts credited under paragraph (3).
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(2) TRANSFER.—In fiscal year 2025 and each
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fiscal year thereafter, the Secretary of the Treasury
17
shall transfer to the Reimbursement Fund, from the
18
general fund of the Treasury, an amount equal to
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fifty percent of the total amount of remittance fees
20
collected under subsection (g)(2) of section 920 of
21
the Electronic Fund Transfer Act (relating to remit-
22
tance transfers; 15 U.S.C. 1693o–1) during the im-
23
mediately preceding fiscal year.
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(3) INVESTMENT OF AMOUNTS.—
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•HR 672 IH
(A) IN GENERAL.—The Secretary of the
1
Treasury shall invest such portion of the Reim-
2
bursement Fund as is not required to meet cur-
3
rent withdrawals in interest-bearing obligations
4
of the United States or in obligations guaran-
5
teed as to both principal and interest by the
6
United States.
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(B) INTEREST AND PROCEEDS.—The in-
8
terest on, and the proceeds from the sale or re-
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demption of, any obligations held in the Reim-
10
bursement Fund shall be credited to the Reim-
11
bursement Fund.
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(4) PURPOSE; APPLICATION.—
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(A) IN GENERAL.—Amounts in the Reim-
14
bursement Fund shall be available to the Sec-
15
retary of Homeland Security, without further
16
appropriation, to reimburse border States for
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expenditures incurred by such States relating to
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border security enforcement measures.
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(B) APPLICATION.—Not later than 30
20
days after the beginning of any fiscal year be-
21
ginning in fiscal year 2025, a border State may
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apply to the Secretary to receive amounts from
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the Reimbursement Fund by submitting re-
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ceipts, in such form and manner as the Sec-
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•HR 672 IH
retary deems appropriate, of expenditures relat-
1
ing to border security enforcement measures
2
made during the immediately preceding fiscal
3
year.
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(C)
AMOUNT.—The
Secretary
shall
5
promptly distribute from the Reimbursement
6
Fund, to any border State that submits an ap-
7
plication under subparagraph (B), an amount
8
equal to the proportion that the amount ex-
9
pended by such a border State in the applicable
10
immediately preceding fiscal year bears to the
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total amount expended in such fiscal year by all
12
such border States so submitting an applica-
13
tion.
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(D) BORDER
SECURITY
ENFORCEMENT
15
MEASURES.—In this subparagraph, an expendi-
16
ture by a border State shall be deemed to be re-
17
lated to border security enforcement measures
18
if that expenditure directly or indirectly was
19
used for the mission of deterring unlawful
20
crossings, detecting unlawful activity and entry
21
into the United States, or for gaining oper-
22
ational control of the southwest border.
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(c) BORDER SECURITY TRUST FUND.—
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•HR 672 IH
(1) IN GENERAL.—There is established in the
1
Treasury a trust fund, to be known as the ‘‘Border
2
Security Trust Fund’’ (in this section referred to as
3
the ‘‘Security Fund’’), consisting of amounts trans-
4
ferred under paragraph (2) and any amounts cred-
5
ited under paragraph (3).
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(2) TRANSFERS.—In fiscal year 2025 and each
7
fiscal year thereafter, the Secretary of the Treasury
8
shall transfer to the Security Fund, from the general
9
fund of the Treasury, an amount equal to fifty per-
10
cent of the total amount of remittance fees collected
11
under subsection (g)(2) of section 920 of the Elec-
12
tronic Fund Transfer Act (relating to remittance
13
transfers; 15 U.S.C. 1693o–1) during the imme-
14
diately preceding fiscal year.
15
(3) INVESTMENT OF AMOUNTS.—
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(A) IN GENERAL.—The Secretary of the
17
Treasury shall invest such portion of the Secu-
18
rity Fund as is not required to meet current
19
withdrawals in interest-bearing obligations of
20
the United States or in obligations guaranteed
21
as to both principal and interest by the United
22
States.
23
(B) INTEREST AND PROCEEDS.—The in-
24
terest on, and the proceeds from the sale or re-
25
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•HR 672 IH
demption of, any obligations held in the Secu-
1
rity Fund shall be credited to the Security
2
Fund.
3
(4) PURPOSES.—Amounts in the Security Fund
4
shall be available to the Secretary of Homeland Se-
5
curity, without further appropriation, for the fol-
6
lowing purposes:
7
(A) The deployment of technology intended
8
to detect and prevent unlawful crossings along
9
the United States-Mexico border.
10
(B) The installation of physical barriers at
11
the southern border.
12
(C) Wages and salaries for U.S. Border
13
Patrol agents.
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(d) RESCISSION OF EXCESS AMOUNTS.—If the sum
15
of the total funds in each of the Reimbursement Fund and
16
the Security Fund is greater than $50,000,000,000, an
17
amount equal to the funds in excess of $50,000,000,000
18
shall be—
19
(1) permanently rescinded from such total
20
funds; and
21
(2) deposited in the general fund of the Treas-
22
ury where such funds shall be—
23
(A) dedicated for the sole purpose of def-
24
icit reduction; and
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•HR 672 IH
(B) prohibited from use as an offset for
1
other spending increases or revenue reductions.
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(e) EFFECTIVE DATE.—This Act and the amendment
3
made by this Act shall take effect and apply beginning
4
on January 1, 2024.
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Æ
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