The Border Security Investment Act imposes a 37-percent fee on certain international remittance transfers to fund border security technology, infrastructure, and state reimbursement programs.
Nathaniel Moran
Representative
TX-1
The Border Security Investment Act establishes a 37-percent fee on remittance transfers sent to countries with high rates of unlawful entry into the U.S. The revenue generated from these fees is split equally into two trust funds dedicated to reimbursing border states for security expenditures and financing federal border security initiatives, such as technology, physical barriers, and personnel. Any combined fund balance exceeding $50 billion will be permanently redirected toward federal deficit reduction.
New Border Security Act Imposes 37% Fee on Money Transfers to High-Entry Countries
The Border Security Investment Act introduces a massive shift in how the U.S. funds border operations by tapping into the billions of dollars sent abroad every year. Under this bill, any person sending money through a service like Western Union or a digital app to a "covered country" will be hit with a mandatory 37% fee. To put that in perspective, if a construction worker in Texas tries to send $500 back home to help his parents with medical bills, he’ll have to shell out an extra $185 just in federal fees. The "covered countries" aren't permanent; the list updates every year to target the five nations with the highest rates of citizens entering the U.S. unlawfully. This money doesn't just sit in a general pot; it’s funneled into two brand-new trust funds designed to bypass the usual congressional budget fights.
The Cost of Sending Cash
For the millions of people who use money services businesses (defined under 31 C.F.R. § 1010.100), this bill represents a significant price hike. The 37% fee is collected immediately and sent to the Treasury. Because the list of targeted countries is based on the previous year's data from the Customs and Border Protection Commissioner, the cost of sending money could fluctuate wildly. One year, sending money to a specific country might cost the standard transaction fee; the next, it could cost nearly 40% more. This creates a massive financial hurdle for low-income families who rely on these remittances for basic needs like food and housing, and it might push people toward informal, less secure ways of moving money to avoid the bite of the tax.
Reimbursing the Front Lines
Half of the money collected from these fees goes into the Border Security State Reimbursement Trust Fund. This is essentially a giant rebate program for border states like Arizona or New Mexico. If a state spends its own money on anything that "indirectly supports" deterring unlawful crossings—a broad definition that could cover everything from local police overtime to high-tech surveillance gear—they can submit their receipts to the federal government. According to Section 2, states have just 30 days after the bill passes to apply for money spent in the previous year. The Secretary of Homeland Security then divvies up the cash proportionally based on who spent the most, giving states a direct financial incentive to ramp up their own border enforcement efforts.
Boots, Bricks, and Bytes
The other 50% of the fee revenue lands in the Border Security Trust Fund, which gives the Secretary of Homeland Security a blank check—no further congressional approval needed—to spend on three specific things: southern border technology, physical barriers (like walls or fences), and the salaries of Border Patrol agents. By tying agent pay and tech upgrades directly to remittance fees, the bill creates a self-funding loop for border operations. However, there is a ceiling on this growth. If the two funds combined ever hit $50 billion, any extra cash is automatically diverted to pay down the national debt. While this ensures the funds don't grow indefinitely, it also means that the more money is sent to "covered countries," the faster the U.S. pays off its credit card.