Border Security Investment Act

To establish trust funds relating to border security, and for other purposes. 1. Short title This Act may be cited as the Border Security Investment Act 2. Establishment of trust funds relating to border security (a) Additional remittance transfer fees Section 920 of the Electronic Fund Transfer Act (relating to remittance transfers) ( 15 U.S.C. 1693o–1 (1) by redesignating subsection (g) as subsection (h); and (2) by inserting after subsection (f) the following: (g) Additional remittance fees (1) In general A remittance transfer provider that is a money services business shall impose a fee on each person sending a remittance transfer to a covered country in an amount equal to 37 percent of the remittance transfer amount. (2) Transfer of fees All fees collected under this subsection shall be submitted to the Department of the Treasury for deposit in the general fund, in such form and in such manner as the Secretary of the Treasury shall establish by rule. (3) Definitions In this subsection: (A) Covered country With respect to a fiscal year, the term covered country (B) Money services business The term money services business . (b) Border Security State Reimbursement Trust Fund (1) In general There is established in the Treasury a trust fund, to be known as the Border Security State Reimbursement Trust Fund Reimbursement Fund (2) Transfer In fiscal year 2025 and each fiscal year thereafter, the Secretary of the Treasury shall transfer to the Reimbursement Fund, from the general fund of the Treasury, an amount equal to fifty percent of the total amount of remittance fees collected under subsection (g)(2) of section 920 of the Electronic Fund Transfer Act (relating to remittance transfers; 15 U.S.C. 1693o–1 (3) Investment of amounts (A) In general The Secretary of the Treasury shall invest such portion of the Reimbursement Fund as is not required to meet current withdrawals in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. (B) Interest and proceeds The interest on, and the proceeds from the sale or redemption of, any obligations held in the Reimbursement Fund shall be credited to the Reimbursement Fund. (4) Purpose; application (A) In general Amounts in the Reimbursement Fund shall be available to the Secretary of Homeland Security, without further appropriation, to reimburse border States for expenditures incurred by such States relating to border security enforcement measures. (B) Application Not later than 30 days after the beginning of any fiscal year beginning in fiscal year 2025, a border State may apply to the Secretary to receive amounts from the Reimbursement Fund by submitting receipts, in such form and manner as the Secretary deems appropriate, of expenditures relating to border security enforcement measures made during the immediately preceding fiscal year. (C) Amount The Secretary shall promptly distribute from the Reimbursement Fund, to any border State that submits an application under subparagraph (B), an amount equal to the proportion that the amount expended by such a border State in the applicable immediately preceding fiscal year bears to the total amount expended in such fiscal year by all such border States so submitting an application. (D) Border security enforcement measures In this subparagraph, an expenditure by a border State shall be deemed to be related to border security enforcement measures if that expenditure directly or indirectly was used for the mission of deterring unlawful crossings, detecting unlawful activity and entry into the United States, or for gaining operational control of the southwest border. (c) Border Security Trust Fund (1) In general There is established in the Treasury a trust fund, to be known as the Border Security Trust Fund Security Fund (2) Transfers In fiscal year 2025 and each fiscal year thereafter, the Secretary of the Treasury shall transfer to the Security Fund, from the general fund of the Treasury, an amount equal to fifty percent of the total amount of remittance fees collected under subsection (g)(2) of section 920 of the Electronic Fund Transfer Act (relating to remittance transfers; 15 U.S.C. 1693o–1 (3) Investment of amounts (A) In general The Secretary of the Treasury shall invest such portion of the Security Fund as is not required to meet current withdrawals in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. (B) Interest and proceeds The interest on, and the proceeds from the sale or redemption of, any obligations held in the Security Fund shall be credited to the Security Fund. (4) Purposes Amounts in the Security Fund shall be available to the Secretary of Homeland Security, without further appropriation, for the following purposes: (A) The deployment of technology intended to detect and prevent unlawful crossings along the United States-Mexico border. (B) The installation of physical barriers at the southern border. (C) Wages and salaries for U.S. Border Patrol agents. (d) Rescission of excess amounts If the sum of the total funds in each of the Reimbursement Fund and the Security Fund is greater than $50,000,000,000, an amount equal to the funds in excess of $50,000,000,000 shall be— (1) permanently rescinded from such total funds; and (2) deposited in the general fund of the Treasury where such funds shall be— (A) dedicated for the sole purpose of deficit reduction; and (B) prohibited from use as an offset for other spending increases or revenue reductions. (e) Effective date This Act and the amendment made by this Act shall take effect and apply beginning on January 1, 2024.

Summary: Border Security Investment Act This bill imposes a fee on remittances sent to certain countries and provides funding for border security activities from the collected amounts. Specifically, the fee shall apply to remittances sent to one of the five countries that had the most citizens or nationals unlawfully enter the United States in the previous fiscal year, as determined by U.S. Customs and Border Protection. The fee must be 37% of the amount sent. Half of the money collected by the fee must be placed in a trust fund for reimbursing border states for expenses incurred for border security enforcement measures. The other half must be placed in another trust fund for (1) deploying technology and installing physical barriers along the U.S.-Mexico border, and (2) paying the wages and salaries of U.S. Border Patrol agents. If the amount in the trust funds exceeds a certain threshold, the excess money must be used only for deficit reduction.