I 
119TH CONGRESS 
1ST SESSION H. R. 4586 
To establish a comprehensive strategy to support African and Caribbean 
diaspora engagement in development through reduced remittance costs, 
investment incentives, and institutional partnerships. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 22, 2025 
Mrs. CHERFILUS-MCCORMICK (for herself and Mr. JACKSON of Illinois) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committees on Foreign Affairs, and 
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 a comprehensive strategy to support African 
and Caribbean diaspora engagement in development 
through reduced remittance costs, investment incentives, 
and institutional partnerships. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘African Diaspora In-
vestment and Development Act’’ or the ‘‘AIDA’’. 
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SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The United States is home to approximately 
6,600,000 first generation African and Caribbean 
immigrants, nested within a broader population of 
46,000,000 African Americans, representing vast 
economic, intellectual, and cultural capital, with 
longstanding economic and cultural ties to their 
countries of origin. 
(2) Many members of these and other diaspora 
and immigrant populations annually transmit to 
their countries of origin or descent portions of their 
incomes or other earnings—transfers known as re-
mittances—that in the aggregate often are large and 
significantly contribute to economic growth, develop-
ment, and human welfare in recipient countries. 
(3) Remittances to Africa were estimated at 
over $91,000,000,000 in 2023—transfers which sus-
tain families, fund education and healthcare, finance 
small businesses, and fill gaps in national infrastruc-
ture. 
(4) An estimated $19,499,000,000 was remitted 
to the Caribbean in 2023, with those countries re-
ceiving billions in essential family and community 
support. 
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(5) Sub-Saharan Africa remains the most ex-
pensive region for sending remittances, with average 
costs of 7.73 percent to send $200 in Q1 2024. In 
contrast, the average cost for Latin America and the 
Caribbean is 5.97 percent. 
(6) If the global average cost of remittances is 
reduced to the Sustainable Development Goal target 
of 3 percent, developing countries could save be-
tween $5,000,000,000 and $32,000,000,000 annu-
ally and redirect such resources to international eco-
nomic growth and development investment. 
(7) The global remittance market was valued at 
$784,250,000,000 in 2022 and is projected to reach 
$1,330,000,000,000 by 2032, creating significant 
employment and economic activity across the finan-
cial services industry. 
(8) As the Economist noted on April 24, 2025, 
‘‘Emigration from Africa will change the world’’— 
not as a threat, but as a mutual opportunity for 
global growth, shared prosperity, and demographic 
balance. 
(9) Yet the United States lacks a coherent 
framework to channel this economic power into for-
mal investment, leaving diaspora members to oper-
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ate in fragmented, uncoordinated environments with 
limited access to incentives or protections. 
(10) The future of United States-Africa rela-
tions does not rest solely on diplomatic summits or 
state-to-state aid. It lies in the millions of quiet fi-
nancial acts made every month by diaspora citizens: 
a tuition payment, a clinic donation, a loan to 
launch a cousin’s shop. These flows deserve the full 
support of United States law and policy. 
(11) By embracing the diaspora not only as 
emotional kin but as strategic co-investors, this Act 
positions the United States at the frontier of global 
economic cooperation. It affirms that America’s 
strength abroad rests not only in its institutions— 
but in the networks of commitment and capital held 
by its people. 
SEC. 3. STATEMENT OF POLICY. 
It is the policy of the United States to— 
(1) recognize African and Caribbean diaspora 
communities as legitimate partners in United States 
foreign economic policy, development assistance, and 
national investment strategy; 
(2) recognize the role of regional and country- 
specific diasporas in cultural diplomacy, people-to- 
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people ties, and various diasporas’ expanding con-
tribution to socioeconomic development; 
(3) endeavor to reduce the cost of sending re-
mittances including through policies aimed at in-
creasing competition within the international finan-
cial transfers sub-sector and reducing related taxes 
or other administrative costs and maximize their po-
tential to foster inclusive economic growth; 
(4) safeguard the integrity and affordability of 
remittance flows, including by prohibiting taxation 
on personal remittances; 
(5) promote financial inclusion and reduce 
transaction costs through market competition, 
fintech innovation, and diaspora-owned remittance 
platforms; 
(6) incentivize formal, productive investment in 
diaspora countries of origin through targeted United 
States tax policy, finance instruments, and legal 
safeguards; and 
(7) pursue the global Sustainable Development 
Goal of reducing the average cost of remittances to 
3 percent, especially for low-value transfers and 
high-cost corridors, through market incentives, inno-
vation, and competition rather than price controls. 
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SEC. 4. SUPPORT FOR DIASPORA INVESTMENTS FROM THE 
UNITED STATES INTERNATIONAL DEVELOP-
MENT FINANCE CORPORATION. 
(a) IN GENERAL.—The Chief Executive Officer of the 
United States International Development Finance Cor-
poration shall carry out a program to support, in the form 
of matching up to $5,000 (adjusted for inflation) in funds 
per taxpayer, investments that the Chief Executive Offi-
cer, in coordination with the Secretary of the Treasury, 
determines are investments by the African diaspora or in-
vestments in Caribbean countries that meet measurable 
development goals in health, education, agriculture, clean 
energy, or youth employment in Africa or the Caribbean 
countries, respectively. 
(b) INVESTMENTS BY THE AFRICAN DIASPORA IN 
CERTAIN ISSUERS.—The Securities and Exchange Com-
mission shall issue rules to treat a member of the African 
Diaspora who is not an accredited investor as an accred-
ited investor for purposes of the securities laws with re-
spect to securities offered or sold by an issuer, if— 
(1) the United States International Develop-
ment Finance Corporation or another qualified de-
velopment finance institution holds an investment in 
the issuer, as determined by the Commission; 
(2) no more than 25 percent of the total funds 
raised by the issuer in the applicable offering of se-
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curities is purchase by members of the African Dias-
pora in reliance on this subsection; and 
(3) the issuer discloses to the public the amount 
of securities, in the aggregate, purchased by mem-
bers of the African Diaspora in reliance on this sub-
section. 
(c) SPECIAL WINDOW FOR DIASPORA-LED INVEST-
MENT.—In addition to the program described in sub-
section (a), the Chief Executive Officer of the United 
States International Development Finance Corporation 
shall, using applicable authorities provided by the BUILD 
Act of 2018 (22 U.S.C. 9601 et seq.), establish a special 
window to provide support to diaspora-led investment 
funds, social enterprises, and infrastructure projects in Af-
rican and Caribbean countries. 
SEC. 5. DIASPORA INFRASTRUCTURE BOND FRAMEWORK. 
The Secretary of the Treasury and the United States 
International Development Finance Corporation are au-
thorized to provide support for the issuance of diaspora 
bonds by African and Caribbean nations through credit 
enhancement, technical assistance, and co-marketing with 
diaspora investment vehicles. 
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SEC. 6. MARKET EXPANSION FOR REMITTANCE PRO-
VIDERS. 
(a) REMOVING REGULATORY BARRIERS.—The Sec-
retary of the Treasury shall issue rules to remove undue 
regulatory barriers applicable to remittance providers 
that— 
(1) are owned by members of the African Dias-
pora; and 
(2) are fintech-driven. 
(b) REMITTANCE INNOVATION FUND.— 
(1) ESTABLISHMENT.—There is established in 
the Treasury a fund to be known as the ‘‘Remit-
tance Innovation Fund’’. 
(2) USE
OF
FUND.—The Secretary of the 
Treasury shall use amounts in the Remittance Inno-
vation Fund to promote low-cost, secure, and trace-
able financial transfers by— 
(A) providing technical support to remit-
tance providers described in subsection (a); and 
(B) providing seed funding to persons 
seeking to establish a remittance provider de-
scribed in subsection (a). 
SEC. 7. DEDUCTION FOR REMITTANCES USED FOR QUALI-
FIED PURPOSES. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of subtitle A of the Internal Revenue Code of 1986 
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is amended by inserting after section 223 the following 
new section: 
‘‘SEC. 223A. DEDUCTION FOR REMITTANCES USED FOR 
QUALIFIED PURPOSES. 
‘‘(a) DEDUCTION ALLOWED.—In the case of an indi-
vidual there shall be allowed as a deduction an amount 
equal to so much of the qualified remittance transfers 
made by the taxpayer to recipients residing in a covered 
country during the taxable year as do not exceed $3,000. 
‘‘(b) QUALIFIED REMITTANCE TRANSFER.—For pur-
poses of this section, the term ‘qualified remittance trans-
fer’ means a remittance transfer which is used by the re-
cipient for housing, agriculture, education, healthcare, or 
small enterprise support. 
‘‘(c) COVERED COUNTRY.—For purposes of this sec-
tion, the term ‘covered country’ means a member state of 
the African Union or a member state of the Caribbean 
Community (CARICOM). 
‘‘(d) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary or ap-
propriate to carry out the purposes of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part VII of subchapter B of chapter 1 of subtitle A 
of such Code is amended by inserting the following new 
item after the item relating to section 223: 
‘‘Sec. 223A. Deduction for remittances used for qualified purposes.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to remittances made after the date 
of the enactment of this Act. 
SEC. 8. EXCLUSION OF INCOME ATTRIBUTABLE TO CER-
TIFIED DIASPORA INVESTMENTS. 
(a) IN GENERAL.—Chapter 1 of subtitle A of the In-
ternal Revenue Code of 1986 is amended by adding at the 
end the following new subchapter: 
‘‘Subchapter AA—Certified Diaspora 
Investments 
‘‘Sec. 1400AA. Certified diaspora investments. 
‘‘SEC. 1400AA. CERTIFIED DIASPORA INVESTMENTS. 
‘‘(a) IN GENERAL.—In the case of a certified dias-
pora investment— 
‘‘(1) gross income for the taxable year shall not 
include any dividend or interest payments received 
with respect to such investment, and 
‘‘(2) the basis of such property shall be equal 
to the fair market value of such investment on the 
date that the investment is sold or exchanged. 
‘‘(b) LIMITATION.—The sum of the amount of pay-
ments taken into account under paragraph (1) of sub-
section (a) and the amount of the increase in basis of as-
sets of the taxpayer under paragraph (2) of such sub-
section for any taxable year may not exceed $12,000. 
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‘‘(c) QUALIFIED DIASPORA INVESTMENT.—For pur-
poses of this section the term ‘qualified diaspora invest-
ment’ means any equity, debt, or blended capital invest-
ment in a company or project based in a covered country 
(as defined in section 223A) and duly registered with such 
country’s securities authority or channeled through a fund 
recognized by a United States development finance institu-
tion. 
‘‘(d) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning after 2025, the $12,000 amount in 
subsection (b) shall be increased by an amount equal 
to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2024’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
‘‘(2) ROUNDING.—If any increase under para-
graph (1) is not a multiple of $100, such increase 
shall be rounded to the nearest multiple of $100. 
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‘‘(e) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary or ap-
propriate to carry out the purposes of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 1 of subtitle A of such Code is 
amended by inserting after the item relating to subchapter 
Z the following new item: 
‘‘Subchapter AA. Certified diaspora investments.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to investments made after the date 
of the enactment of this Act. 
SEC. 9. REPEAL OF REMITTANCE EXCISE TAX. 
(a) IN GENERAL.—Chapter 36 of the Internal Rev-
enue Code of 1986 is amended by repealing subchapter 
C (and the table of subchapters for such chapter is amend-
ed by striking the item relating to such subchapter). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transfers made after December 
31, 2025. 
SEC. 10. REPORT. 
(a) ANNUAL REPORT REQUIRED.—Not later than 1 
year after the date of the enactment of this Act, and annu-
ally thereafter, the Secretary of the Treasury, acting 
through the Director of the Consumer Financial Protec-
tion Bureau, the Board of Governors of the Federal Re-
serve, and the Secretary of State, in consultation with the 
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