This bill imposes a 5% transfer fee on remittances sent to recipients outside of the United States, to be paid by the sender. The bill also establishes for U.S. citizens a tax credit equal to the amount that the citizen taxpayer paid in such transfer fees for any taxable year.
The bill also provides funding for various border-related activities, such as to build a barrier along the U.S.-Mexico barrier. The funding shall be equal to the amount collected by the transfer fee minus the tax credits allowed.
To impose a fee on certain remittance transfers to fund border 
                               security.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REMITTANCE TRANSFER FEE.

    (a) In General.--Section 920 of the Electronic Fund Transfer Act 
(relating to remittance transfers) (15 U.S.C. 1693o-1) is amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following:
    ``(g) Remittance Transfer Fee.--
            ``(1) In general.--If the designated recipient of a 
        remittance transfer is located outside of the United States, a 
        remittance transfer provider shall collect from the sender of 
        such remittance transfer a remittance transfer fee equal to 5 
        percent of the United States dollar amount to be transferred.
            ``(2) Transfer of funds.--Not later than 90 days after the 
        date of enactment of this subsection, the Secretary of the 
        Treasury, in consultation with the Bureau and remittance 
        transfer providers, shall develop and make available a system 
        for remittance transfer providers to submit the remittance 
        transfer fees collected in accordance with paragraph (1) to the 
        Secretary for transfer to the Border Enforcement Trust Fund as 
        provided in section 3344(b) of title 31, United States Code.
            ``(3) Penalties.--
                    ``(A) Whoever, with the intent to evade a 
                remittance transfer fee to be collected in accordance 
                with this subsection, and who has knowledge that, at 
                the time of a remittance transfer, the value of the 
                funds involved in the transfer will be further 
                transferred to a recipient located outside of the 
                United States, requests or facilitates such remittance 
                transfer to a recipient located outside of the United 
                States shall be subject to a penalty of not more than 
                $500,000 or twice the value of the funds involved in 
                the remittance transfer, whichever is greater, or 
                imprisonment for not more than 20 years, or both.
                    ``(B) Any foreign country that, in the joint 
                determination of the Secretary of Homeland Security, 
                the Secretary of the Treasury, and the Secretary of 
                State, aids or harbors an individual conspiring to 
                avoid the fee collected in accordance with this 
                subsection shall be ineligible to receive foreign 
                assistance and to participate in the visa waiver 
                program or any other programs, at the discretion of the 
                Secretaries described in this subparagraph.''.
    (b) Refundable Income Tax Credit Allowed to Citizens of the United 
States for Remittance Transfer Fees.--
            (1) In general.--Subpart C of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following new section:

``SEC. 36C. REMITTANCE TRANSFER FEES OF UNITED STATES CITIZENS.

    ``In the case of any individual who is a citizen of the United 
States, there shall be allowed as a credit against the tax imposed by 
this subtitle for any taxable year an amount equal to the aggregate 
amount of remittance transfer fees paid by such individual under 
section 920(g) of the Electronic Fund Transfer Act (15 U.S.C. 1693o-
19(g)) during such taxable year.''.
            (2) Conforming amendments.--
                    (A) Section 6211(b)(4)(A) of the Internal Revenue 
                Code of 1986 is amended by inserting ``36C,'' after 
                ``36B,''.
                    (B) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by inserting ``36C,'' 
                after ``36B,''.
                    (C) The table of sections for subpart C of part IV 
                of subchapter A of chapter 1 of the Internal Revenue 
                Code of 1986 is amended by inserting after the item 
                relating to section 36B the following new item:

``Sec. 36C. Remittance transfer fees of United States citizens.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable year ending after the date of the 
        enactment of this Act.
    (c) Report Regarding Amount of Remittance Transfers to Each Foreign 
Country.--The Commissioner of the United States Customs and Border 
Protection shall annually submit to the Committee on Banking, Housing, 
and Urban Affairs and the Committee on Homeland Security and 
Governmental Affairs of the Senate and the Committee on Financial 
Services and the Committee on Homeland Security of the House of 
Representatives an annual report describing the aggregate amount of 
remittance transfers made to each foreign country during the year to 
which such report relates.

SEC. 2. BORDER ENFORCEMENT TRUST FUND.

    (a) Establishment of Fund.--At the end of subchapter III of chapter 
33 of title 31, United States Code, insert the following:
``Sec. 3344. Border Enforcement Trust Fund.
    ``(a) Establishment of Trust Fund.--Not later than 60 days after 
the date of enactment of this section, the Secretary of the Treasury 
shall establish an account in the Treasury of the United States, to be 
known as the `Border Enforcement Trust Fund'.
    ``(b) Transfers to Trust Fund.--
            ``(1) In general.--There are hereby appropriated to the 
        Border Enforcement Trust Fund the excess of--
                    ``(A) amounts collected as remittance transfer fees 
                under section 920(g) of the Electronic Fund Transfer 
                Act (15 U.S.C. 1693o-19(g)), over
                    ``(B) credits allowed under section 36C of the 
                Internal Revenue Code of 1986 with respect to such 
                amounts.
            ``(2) Timing and estimates.--Amounts appropriated under 
        paragraph (1) shall be transferred by the Secretary of the 
        Treasury at least monthly from the general fund of the Treasury 
        on the basis of estimates made by the Secretary of the 
        Treasury. Proper adjustments shall be made in amounts 
        subsequently transferred to the extent prior estimates where in 
        excess of or less than the amounts required to be transferred.
    ``(c) Expenditures From Trust Fund.--Amounts in the Border 
Enforcement Trust Fund shall be available, as provided in appropriation 
Acts, only to--
            ``(1) employ and train additional U.S. Border Patrol 
        agents,
            ``(2) employ and train officers and support staff employed 
        in enforcement and removal operations of Immigration and 
        Customs Enforcement of the Department of Homeland Security,
            ``(3) plan, design, construct, improve, or maintain 
        barriers along the international border between the United 
        States and Mexico, and
            ``(4) plan, design, construct, improve, or maintain 
        detention facilities for aliens without lawful immigration 
        status.''.
    (b) Clerical Amendment.--The table of contents for chapter 33 of 
title 31, United States Code, is amended by inserting at the end the 
following:

``3344. Border Enforcement Trust Fund.''.
                                 <all>
To impose a fee on certain remittance transfers to fund border security.
To impose a fee on certain remittance transfers to fund border security.
Official Titles - House of Representatives
Official Title as Introduced
To impose a fee on certain remittance transfers to fund border security.
Rep. Hern, Kevin