Key Takeaways
• The Border Security Investment Act proposes a 37% fee on remittances sent from the U.S. to certain countries.
• This bill would target the top five countries with most unlawful border crossings, mainly affecting Latino immigrant communities.
• The fee could sharply reduce remittance flows, harming both family recipients and national economies reliant on these funds.
A bill in the U.S. House of Representatives is drawing strong attention from immigrants, their families, and many people who rely on international money transfers. This proposal, called the Border Security Investment Act (H.R. 445), would set up a 37% fee on remittances, which are the funds that people in the U.S. send to family members or others in different countries. The proposed change is causing concern for immigrant communities, families living abroad, and even entire countries that rely on this money to help meet basic needs.
Let’s break down the proposal, the possible impacts on both senders and receivers, and why this matters so much for millions of people.
What Is the Border Security Investment Act and Who Would It Affect?
The Border Security Investment Act was introduced in the House by Representative Jim Moran, together with six other Republican co-sponsors. Its main goal is to help cover the costs of border enforcement. Instead of raising funds through general taxes, the bill aims to collect money by charging a fee on international cash transfers sent from the U.S. to certain countries.
The countries targeted by this fee would be chosen every year by U.S. Customs and Border Protection. These would be the five countries whose citizens or nationals have the highest numbers of unlawful U.S. border crossings in the previous year. The fee would apply only to remittances sent through money service businesses like Western Union, MoneyGram, and others.
If this plan becomes law, it would start just 30 days after being passed. That means people would have almost no time to plan or adjust before the costs jump.
Where Would the Money Go?
Under the Border Security Investment Act, the fee from each money transfer would be split between two purposes:
- Half would go into the Border Security State Reimbursement Trust Fund. This fund would repay states along the U.S. border for expenses they face because of border security operations.
- The other half would go into the Border Security Trust Fund. This money would pay for things like new technology, more border walls or barriers, and salaries for U.S. Border Patrol agents along the U.S.-Mexico border.
If the government collects more than $50 billion through these fees, anything extra would go into the U.S. Treasury general fund. This money could be used to help reduce the country’s budget deficit.
Why Remittances Matter to Immigrant Communities
Remittances are a vital part of financial life for many immigrants. Millions of people, especially from Latin America, Africa, and Asia, work in the United States 🇺🇸 and send money home to help support family members. This money covers essentials like food, rent, health care, and schooling.
The countries most often connected to these types of discussions about remittances and border policies include Mexico 🇲🇽, Guatemala 🇬🇹, Honduras 🇭🇳, and a few others in Central America. In 2023, people sent about $63 billion from the U.S. to Mexico 🇲🇽 alone. This amount is huge for Mexico 🇲🇽, making up almost 4% of its entire economy.
Even small amounts of money sent home can make a life-changing difference for families who depend on them. These transfers help keep children in school, put food on the table, and cover medical costs. Without them, many families would fall into poverty.
What Would the 37% Fee Do to Remittances and Immigrant Communities?
The size of the fee set by the Border Security Investment Act is what worries many. Let’s look at what it means in simple numbers:
If you send $100 through a traditional money service provider, under this new rule, you would pay a $37 fee on top of the regular fee already charged. That means only $63 will end up in your family member’s hands.
Here’s what that could lead to for many people:
– Many immigrants work in low-wage jobs. A higher fee would make it much harder to keep sending regular help to families.
– People might have to send smaller amounts, less often, or even stop sending money completely.
– Families in other countries could struggle to buy food, pay rent, or cover school costs.
– Less money flowing into these countries from abroad could harm their local economies.
Analysis from VisaVerge.com suggests that in countries where a good part of the population depends on remittances, a sudden drop could push more people into poverty and even lead to instability.
How Does This Compare to Other Proposals?
The Border Security Investment Act is not the first idea to tax remittances, but it is among the steepest. Other proposals also being discussed include:
– A plan for a 5% tax on any international money transfer made by non-citizens, as found in a GOP tax bill.
– Incoming Vice President J.D. Vance has suggested a 10% fee for similar money transfers, with heavy penalties for rule-breakers.
– Chuck DeVore, a former lawmaker, has gone even further with an idea for a 50% tax, which would deeply cut the funds crossing borders.
Another earlier bill, called the WIRED Act (Withholding Illegal Revenue Entering Drug Markets), suggested a much lower 5% fee. All these ideas have one thing in common: they see remittances as a way to raise money, often for border security or to stop illegal crossings.
Which Countries Would Be Most Affected?
Each year, border officials would decide which five countries are most affected, based on unlawful border crossing data. Historically, these have included Mexico 🇲🇽, Guatemala 🇬🇹, Honduras 🇭🇳, El Salvador 🇸🇻, and sometimes countries from Africa or Asia. The effect would change year to year, depending on migration patterns.
Most people who send remittances are Latino immigrants. If the bill passes, it’s likely they would feel the biggest impact, both personally and in their home countries.
The Bigger Economic Impact: Beyond Families
Remittances don’t just help individual families. They play a major role in the economies of many developing countries. According to recent data, in some places remittances are larger than what comes in through direct foreign investments or official government aid.
For example, in 2023:
– Remittances to Mexico 🇲🇽 reached $63 billion, making up 3.7% of its total economic activity.
– In Guatemala 🇬🇹 and Honduras 🇭🇳, remittances also fill a large share of national income.
If there’s a sharp drop in this money because of new fees, it could slow down local businesses, reduce investment in communities, and increase poverty rates. Towns and villages with strong ties to the United States 🇺🇸 might see less new home construction, fewer children in school, and more families moving back into poverty.
How Are Remittances Usually Sent, and What Do They Cost Now?
Before even considering new rules, sending money home is not cheap. In 2011, the usual fee for a money transfer worldwide was about 8%. By 2020, this dropped to about 6%, which is still about double the United Nations’ goal for global average fees (under 3%).
In the past year, remittance fees jumped again by 8%, totaling $13.1 billion in costs just from the fees alone. If you add the 37% fee on top, it’s easy to see why there is so much concern among immigrants and people who study these problems.
What Could Happen If the Border Security Investment Act Becomes Law?
Here are some of the predicted outcomes if the bill passes:
– Many immigrants may stop using official money transfer services to avoid the fees.
– This could push money transfers into informal or unmonitored systems, like cash couriers or underground banks.
– Informal systems are harder for the government to watch and regulate. This can increase the risk of money laundering or other crimes.
– The policy could reduce the flow of helpful funds into developing countries, making life harder for millions of families who rely on them.
Critics of the bill have pointed out that it may backfire by causing immigrants to rely on unsafe or less reliable ways to send money. This would make it hard to track the flow of money and open up new risks of fraud or theft.
What Supporters of the Bill Say
People who promote the Border Security Investment Act argue that it would discourage illegal border crossings by increasing the financial pressure on people entering the country unlawfully. The extra money could then be used to make the border more secure and help states manage related costs.
Supporters also say that because the fee only targets money sent to countries with high rates of unlawful entry, it is fair and focused. They emphasize that legal channels and personal financial choices remain open to people who follow U.S. laws.
What the Critics Say
Critics—including many immigrant advocates, economists, and community leaders—point out several dangers:
– The fee punishes legal immigrants and lawful residents, not just people crossing the border unlawfully.
– It could hurt the poorest and most vulnerable families, both in the U.S. and abroad.
– Larger fees may push people into the informal economy, making it harder for authorities to spot illegal activities.
Many warn that remittances are an essential source of support, and cutting them could do widespread harm.
Status of the Legislation
Right now, the Border Security Investment Act faces an uncertain future in Congress. The country is sharply divided on border policy, taxes, and immigration. While some Republican lawmakers strongly support the fee, others—along with many Democrats—worry about its impact on people who are working hard to support families both here and abroad.
International and Diplomatic Concerns
Some foreign governments have already voiced concerns, warning that steep remittance fees could harm their economies. They argue that good relationships between countries are damaged when the U.S. sets up policies that reduce families’ access to much-needed support.
For many U.S. partners in Latin America and beyond, remittances are central to their development plans and social stability. If money flows slow down suddenly, these countries could face higher rates of poverty, hunger, and even social unrest.
What Should Immigrants and Allies Know Now?
- The proposal is only a bill so far. No new fee has gone into effect yet.
- If you regularly send money home, stay informed about proposed changes by checking government websites, like the U.S. House of Representatives’ official page, for updates.
- Talk with your money transfer service about ways to keep costs down and learn which countries might be affected if the law passes.
- Reach out to community groups to find out more about rights and support options.
For up-to-date developments, following trusted sources like VisaVerge.com can help keep you and your family prepared for any changes.
Conclusion: What Comes Next?
The Border Security Investment Act is one of the most talked-about immigration and financial bills in the U.S. today. While supporters hope it would help pay for border enforcement, many are alarmed by the potential harm to immigrant communities and to families in countries that rely on remittances.
The real-world impact of the bill, if it passes, would go well beyond border security or government finances. It would touch the lives of millions—both in the United States 🇺🇸 and around the globe—by shaping how much help families can give and receive.
As lawmakers debate, many immigrants, community leaders, and families are watching closely, hoping for a solution that keeps both borders and livelihoods secure.
If you care about remittances or are part of an immigrant community, stay alert to changes, reach out for information, and make your voice heard in this important discussion.
Learn Today
Border Security Investment Act → A U.S. bill proposing a 37% fee on remittances sent to countries with high unlawful border crossings.
Remittance → Money sent by people in one country to family or others in another country, usually for support.
Customs and Border Protection → U.S. government agency that manages border security and selects targeted countries for the remittance fee.
Money Service Business → Companies like Western Union or MoneyGram specializing in transferring money internationally.
Informal Transfer System → Unregulated methods of sending money abroad, such as cash couriers, used to avoid official fees or scrutiny.
This Article in a Nutshell
A new U.S. bill threatens immigrant communities with a 37% remittance fee. This would drastically reduce money sent to families abroad, impacting millions. Supporters claim it’s for border security funding, but opponents warn of economic distress, increased poverty, and informal transfers. Debate continues; the law’s future remains uncertain.
— By VisaVerge.com
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