Congressman Nathaniel Moran (TX-01) introduced his first piece of legislation yesterday.
The Border Security Investment Act establishes a dedicated source of funding to fix the crisis along our southern border and perpetually maintain the highest level of border security. If passed into law, it would place a 37% user-based transaction fee on remittance transfers via money services businesses, where the remittance originates in the U.S. and is sent to one of the top five nations of origin for illegal immigration into the United States.
Under the proposed bill, revenue collected from these remittances is placed into two trusts—one trust fund that is used by the federal government solely for critical border security in the form of technology investment, physical barriers, and salaries and wages for border patrol agents. The second trust fund is used solely to reimburse states for expenditures they make for border security enforcement measures in the form of deterring unlawful crossing, detecting unlawful activity and entry into the US, and for gaining operational control of the southwest border. This bill also restores fiscal responsibility by directing unexpended funds held in trust in excess of $50 billion between these two trust funds to go towards reducing the national debt.
“The record surges in unlawful crossings at our southern border – spurred by the Biden administration’s open border policies and its refusal to simply apply the existing rule of law – is one we cannot afford to ignore. The Border Security Investment Act is narrowly tailored in its approach by seeking to target only those transactions often times used by those here illegally or those here legally who are not paying taxes, but who are enjoying the benefits of our nation’s social services,” said Congressman Moran. “Most importantly, this legislation will generate funding for badly-needed border security investments without adding to the national deficit or leaving taxpaying Americans to foot the bill for the border crisis.”
The Federation for American Immigration Reform (FAIR) announced their support for the legislation, stating, “Every year, the United States loses around 150 billion in remittance payments sent to relatives or friends still abroad by immigrants here. These international transfer payments are money not spent on goods and services in this country, and not subject to taxes by either the federal government or the vast majority of states. The loss of revenue from sales, excise and restaurant taxes that could be used to offset the increasingly large number of public services consumed by aliens here is crushing. This is particularly true as the Biden administration seems intent on continuing its lax enforcement of America’s borders and immigration laws as part of its mass immigration agenda. Addressing the shortfall is critical and FAIR is proud to support this common-sense bill from Congressman Moran.”
The Border Security Investment Act will place a 37% remittance fee (which is equivalent to the top income tax bracket currently) on remittance transfers made through money services businesses going to the five countries with the greatest amount of citizens unlawfully enter the United States in a fiscal year. This list would be updated annually.
Revenue collected from these remittances would be placed in two trusts:
The Border Security Trust Fund will be allocated towards border security – this will include salaries and wages for Customs and Border Patrol agents, physical barriers, detection technology, and other resources necessary to secure our southern border.
The State Reimbursement Trust Fund will be allocated to states for expenditures they make for border security enforcement measures in the form of deterring unlawful crossing, detecting unlawful activity and entry into the US, and for gaining operational control of the southwest border.
If the sum of the cumulative balances of the trust funds exceeds $50 billion, any amount over the threshold will be allocated to the Treasury for use solely for deficit reduction.