Border Security Investment Act
Border Security Investment Act would dramatically reshape funding for border enforcement by creating two new trust funds and by placing a new, sizable fee on remittance transfers to certain countries. The bill adds a new “Additional Remittance Fees” provision to the Electronic Fund Transfer Act, imposing a 37% fee on remittance transfers sent to “covered countries” (defined as those five countries with the most unlawful entries into the United States in the prior year). All fees would flow into the Treasury general fund, and then be split: 50% would go into a Border Security State Reimbursement Trust Fund to reimburse border states for expenditures related to border security, and 50% would go into a Border Security Trust Fund to be used by Homeland Security for border technology, physical barriers, and Border Patrol wages. Both funds would be invested, with interest credited back to the respective funds, and the bill would allow DHS to disburse funds without further appropriation. The act also includes a rule that, if combined funds in both trust funds exceed $50 billion, the excess would be permanently rescinded and transferred to the general fund for deficit reduction (and could not be used to offset other spending or revenue changes). The measure would take effect within 30 days of enactment.
Key Points
- 137% remittance fee for transfers to “covered countries.” The fee would apply to money sent by individuals via money services businesses and would be deposited in the U.S. Treasury’s general fund.
- 2Border Security State Reimbursement Trust Fund. Raised funds are split 50% of remittance fees; states can apply to receive reimbursements for border-security-related expenditures. Disbursements are proportional to each state’s share of total eligible expenditures.
- 3Border Security Trust Fund. Raised funds are split 50% of remittance fees; funds can be used by the Department of Homeland Security for deploying border-security technology, installing physical barriers, and paying Border Patrol wages.
- 4Investment and earnings. Both trust funds are to be invested in U.S. government obligations; interest and proceeds stay in the respective funds.
- 5Excess funds provision. If the combined funds exceed $50 billion, the surplus is permanently rescinded to deficit reduction and cannot be used as an offset for other spending or revenue measures. Effective date is within 30 days after enactment.