LPOE Modernization Trust Fund Act

Bill Number

H.R. 1297

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Immigration

Status

Introduced

Latest Action

2025-02-13: Referred to the Subcommittee on Border Security and Enforcement.

Last Updated

2026-03-04T02:22:17Z

AI-Generated Summary

Purpose

The LPOE Modernization Trust Fund Act aims to create a dedicated funding source in the U.S. Treasury to modernize land ports of entry (LPOEs) along U.S. borders. This includes building, expanding, and upgrading facilities to handle increased commercial, vehicle, and pedestrian traffic more efficiently, while supporting trade, security, and inspection operations.

Key Provisions

• Establishment of the Trust Fund: Creates the "Land Port of Entry Modernization Trust Fund" (Trust Fund) to receive deposits starting in fiscal year 2026. Funds come from:
• 25% of fees collected for express consignment operations (under existing customs laws).
• Up to $1.6 billion annually from Merchandise Processing Fees (fees paid on imported goods to cover customs processing costs).
• 25% of new surcharges on immigrant user fees ($40 per fee), land border inspection fees ($6 per fee), and machine-readable visa fees ($20 per fee).
• An initial one-time transfer of up to $1.6 billion from the existing Customs User Fee Account.
• Investment and Management: Unused funds are invested in safe U.S. government securities, with interest earnings returned to the Trust Fund. All uses require approval through annual appropriations bills (budget laws passed by Congress).
• Authorized Uses: Funds support:
• Building new LPOEs.
• Expanding and improving existing LPOE infrastructure for high traffic volumes.
• Buying technology and equipment for inspections at ports and cargo facilities.
• Major repairs to LPOEs.
• Hiring U.S. Customs and Border Protection (CBP) officers, agricultural specialists, and support staff focused on trade and revenue.
• Consultation and Planning: The Department of Homeland Security (DHS) Secretary must consult with the General Services Administration (GSA), U.S. Army Corps of Engineers, state/local/Tribal governments, commerce groups, and advisory committees. Decisions consider regional and bi-national transportation plans.
• Limitations: Prohibits raising existing fees to compensate for funds diverted to the Trust Fund.
• Reporting Requirements: DHS and GSA submit annual reports to Congress and an oversight board detailing fund usage, planned expenditures, balances, and project timelines.
• Oversight Board: Establishes a 9-member "Land Port of Entry Modernization Oversight Board" chaired by the DHS Secretary. Members include designees from DHS, GSA, Commerce, State, and Transportation departments, plus industry representatives (trucking, southwest/northern border ports/rail) and a state/local transportation authority. The board advises on priorities, reviews spending, and submits annual reports to the Secretary. It meets at least yearly, with no extra pay for members beyond travel reimbursements.
• Fee Adjustments: Amends customs laws to redirect portions of fees into the Trust Fund and defines terms like "individual air waybill" (a unique shipping document for a single consignee) to clarify collections.

Significant Changes to Existing Law

• Fee Redirection: Modifies the Consolidated Omnibus Budget Reconciliation Act of 1985 (a law governing customs fees) to deposit 25% of express consignment fees and up to $1.6 billion of Merchandise Processing Fees into the new Trust Fund, rather than general accounts.
• New Surcharges: Introduces additional charges on existing Immigration and Nationality Act fees (immigrant and border inspection) and visa fees under the Enhanced Border Security and Visa Entry Reform Act of 2002, with 25% of surcharge revenue going to the Trust Fund.
• One-Time Transfer: Allows moving unappropriated funds from the Customs User Fee Account to the Trust Fund, bypassing some prior restrictions but still requiring future appropriations for use.
• Board Creation: Sets up a new advisory board exempt from standard federal advisory committee termination rules, tied to the Trust Fund's duration.

Potential Impacts

• Government Agencies: Enhances capabilities for DHS and CBP by funding infrastructure and staffing, potentially reducing backlogs and improving efficiency. GSA and the Army Corps of Engineers gain roles in construction oversight. The oversight board adds coordination but may increase administrative workload.
• Citizens: Could lead to shorter wait times at borders for travelers, commuters, and shoppers, especially in high-traffic areas like the U.S.-Mexico and U.S.-Canada borders, benefiting border communities and daily crossers.
• International Relations: Improves trade flows with Canada and Mexico by modernizing ports, supporting economic ties under agreements like the USMCA (United States-Mexico-Canada Agreement). Bi-national planning may foster better cooperation on border management without directly affecting foreign policy.
• Broader Economy: Boosts commerce by facilitating faster goods movement, potentially lowering costs for importers/exporters and supporting jobs in construction, technology, and inspections.

Main Stakeholders Affected

• Federal Agencies: DHS (lead role), CBP (hiring and operations), GSA (facility management), Departments of Commerce, State, and Transportation (board members and consultations).
• Industry Groups: Trucking, rail, and port operators, especially on southwest (U.S.-Mexico) and northern (U.S.-Canada) borders; commerce organizations representing trade interests.
• Governments and Communities: State, local, and Tribal governments near borders, who provide input and may benefit from infrastructure upgrades.
• Users of Border Services: Immigrants, visa applicants, vehicle/pedestrian crossers, and commercial shippers, who face new surcharges but gain from improved facilities.
• Congress: Appropriations and oversight committees in both House and Senate, receiving reports and controlling fund releases.

Notable Legal, Constitutional, or Political Implications

• Legal: All fund uses are tied to congressional appropriations, upholding the Constitution's requirement for Congress to control spending (Article I, Section 9). Fee surcharges and redirections amend existing statutes without creating new taxes, but could face challenges if seen as unauthorized revenue shifts. The board's structure ensures accountability while exempting it from routine sunset provisions under federal advisory laws.
• Constitutional: Reinforces separation of powers by requiring legislative approval for expenditures, avoiding executive overreach on budgeting.
• Political: Sponsored by bipartisan House members from border states (e.g., Texas), it addresses border security and trade without broad immigration reform, potentially appealing across party lines. Annual reporting promotes transparency, but reliance on fees (rather than general taxes) may spark debates on user-pay fairness versus national infrastructure needs. No direct impact on civil liberties, as focus is on physical and technological upgrades rather than enforcement policies.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Cuellar, Henry [D-TX-28]

Cosponsors (4)

Rep. Gonzales, Tony [R-TX-23], Rep. Escobar, Veronica [D-TX-16], Rep. Vasquez, Gabe [D-NM-2], Rep. Gonzalez, Vicente [D-TX-34]

Recent Actions

• 2025-02-13: Referred to the Subcommittee on Border Security and Enforcement.
• 2025-02-13: Referred to the Committee on Ways and Means, and in addition to the Committees on Homeland Security, Agriculture, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-02-13: Referred to the Committee on Ways and Means, and in addition to the Committees on Homeland Security, Agriculture, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-02-13: Referred to the Committee on Ways and Means, and in addition to the Committees on Homeland Security, Agriculture, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-02-13: Referred to the Committee on Ways and Means, and in addition to the Committees on Homeland Security, Agriculture, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-02-13: Introduced in House
• 2025-02-13: Introduced in House

Bill Versions

• LPOE Modernization Trust Fund Act — issued 2025-02-13 — PDF (14 pages)