This bill establishes the Land Port of Entry Modernization Trust Fund, funded by specific border-related fees, to finance the construction, improvement, and staffing of U.S. land ports of entry upon Congressional appropriation.
Henry Cuellar
Representative
TX-28
The LPOE Modernization Trust Fund Act establishes a dedicated fund within the U.S. Treasury sourced from specific border-related fees and surcharges. This fund is intended to finance the modernization, construction, and staffing of U.S. Land Ports of Entry. Access to these funds requires annual appropriation by Congress, and an oversight board will advise on project prioritization.
Border Infrastructure Bill Adds Up To $40 Surcharge On User Fees To Fund Modernization
The LPOE Modernization Trust Fund Act creates a dedicated, specialized pot of money inside the U.S. Treasury, specifically designed to upgrade our Land Ports of Entry (LPOEs)—that’s where all the commercial trucks, travelers, and pedestrians cross the U.S. borders. The main goal is to pay for new construction, expand existing ports, buy inspection tech, and hire more Customs and Border Protection (CBP) staff. Starting in Fiscal Year 2026, this fund will receive 25% of certain existing customs fees and up to $1.6 billion annually from Merchandise Processing Fees, creating a stable, earmarked source of cash for infrastructure that has often been neglected.
The Trust Fund: Dedicated Cash for Border Traffic Jams
Think of this Trust Fund as a specialized savings account for border infrastructure. Currently, border crossings often face bottlenecks due to outdated facilities or lack of staff. This bill aims to fix that by setting aside money for projects like building new ports, expanding lanes for commercial trucks, and installing advanced inspection technology. For example, if you run a trucking company moving goods across the border, these upgrades could mean significantly less time idling in line, translating directly into lower operating costs and faster delivery times. Crucially, the Secretary of Homeland Security can only spend this money if Congress specifically approves it through annual appropriations, ensuring that even dedicated funds still face legislative oversight.
Who’s Paying the Tab? New Surcharges Hit Travelers
While the fund pulls from existing customs fees, it also introduces new surcharges that hit certain travelers and users directly. If you are applying for an immigrant user visa, you will face a $40 surcharge. If you are paying the land border inspection fee, expect a $6 surcharge. And if you’re getting a machine-readable visa, the cost goes up by $20. These aren't small change, especially for those already managing the high costs of immigration or international travel. This approach effectively shifts the burden of funding modernization directly onto specific users, rather than funding it through general taxes.
The Oversight and the Quick Cash Grab
To guide the spending, the bill establishes a nine-member Land Port of Entry Modernization Oversight Board, including the Secretaries of DHS, Commerce, and Transportation, along with industry representatives. This board will advise on which projects get priority—a necessary step to ensure the money is spent where it’s most needed, not just where it’s politically expedient. However, to get the fund rolling fast, the bill mandates a massive initial transfer of up to $1.6 billion from the existing Customs User Fee Account within 60 days of the bill passing. While this provides immediate capital, it's a significant chunk of change that is suddenly being pulled from an existing account, which could potentially impact other planned customs operations that rely on those funds.