[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3516 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 3516

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 14, 2023

   Mr. Vance introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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.''; and
            (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:

``SEC. 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:

``Sec. 36C. Remittance transfer fees of United States citizens.''.
            (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:
``Sec. 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:

``3344. Border Enforcement Trust Fund.''.
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