Remittance Fee Border Bill (S. 3516)

Summary

Adds a 10% fee to money sent to other countries to pay for border security, which U.S. citizens can get back as a tax credit.

What problem does this solve?

The government needs more money to pay for border security operations and infrastructure. This bill creates a new funding source by charging a fee on money sent out of the country.

What does this bill do?

Imposes a 10% fee on international money transfers

Requires companies that transfer money to collect a 10% fee from the sender if the person receiving the money is outside the United States.

Creates the Border Enforcement Trust Fund

Establishes a new fund in the U.S. Treasury to hold the money collected from the remittance fees.

Allows U.S. citizens to get the fee back

Creates a new refundable tax credit that allows U.S. citizens to get back the total amount of remittance fees they paid during the year.

Specifies how the collected money can be used

Restricts the use of the money in the Trust Fund to hiring more Border Patrol and ICE agents, building barriers on the U.S.-Mexico border, and building or improving detention centers.

Sets penalties for trying to avoid the fee

Makes it a crime to try to avoid the fee, with penalties of up to $500,000 or twice the value of the transfer, and up to 20 years in prison.

Punishes foreign countries that help people avoid the fee

Allows the U.S. to stop giving foreign aid or allowing participation in visa programs to any country that helps people avoid paying the remittance fee.

Who does this affect?

Immigrants and non-citizens sending money abroad
Remittance transfer companies
U.S. citizens sending money internationally

What is the real world impact?

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Creates a dedicated funding source for border security

Establishes a new trust fund for border security paid for by fees on money sent out of the country. This ensures a steady stream of money for enforcement activities like hiring more agents and building barriers.

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Discourages sending money out of the country

Imposes a significant 10% fee on money transfers, which may make it harder for people, especially non-citizens who cannot get the fee back, to send financial support to family members in other countries.

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Pressures foreign governments on immigration issues

Allows the U.S. to cut off foreign aid or visa programs to countries that help people avoid the fee. This gives the government a new tool to influence other nations' policies.

When does this start?

The bill's provisions would start at different times after it becomes law.

Border Enforcement Trust Fund Creation

The Treasury must create the Border Enforcement Trust Fund within 60 days after the bill becomes law.

Fee Collection System Development

A system for companies to send the collected fees to the government must be ready within 90 days after the bill becomes law.

Tax Credit Effective Date

U.S. citizens can claim the tax credit for fees paid in tax years that end after the bill becomes law.