CBP SPACE Act

Bill Number

H.R. 4336

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-07-10: Referred to the House Committee on Ways and Means.

Last Updated

2026-06-11T19:44:49Z

AI-Generated Summary

Purpose of the Legislation

The CBP SPACE Act (H.R. 4336) aims to update how U.S. Customs and Border Protection (CBP) uses fees collected from processing imported goods. It expands the use of these fees to cover building and upgrading facilities at sea ports, ensures better oversight of fee spending, and prevents CBP from burdening ports with non-essential facility requests. This helps CBP maintain and improve inspection infrastructure without relying solely on general taxpayer funds.

Key Provisions

• Fee Adjustment Authority: Allows CBP to adjust merchandise processing fees (charged on imported goods) to fund not just daily operations but also capital costs, such as building, upgrading, or maintaining equipment and facilities at sea ports of entry (where goods and passengers enter the U.S.).
• Prohibition on Facility Requests: CBP cannot require sea ports to provide or maintain administrative offices, training spaces, or recreational areas for CBP staff. This does not limit CBP's existing powers under the Homeland Security Act of 2002 to set up its own facilities if needed.
• Annual Reporting Requirement: Starting one year after enactment, CBP must submit yearly reports to key congressional committees detailing:
• Total fees collected from merchandise processing.
• How much of those fees went to sea port inspection facilities.
• Unmet needs for capital improvements at those facilities.
• Sense of Congress Statement: Encourages the Treasury Secretary and CBP Commissioner to collaborate on setting fee rates that adequately support sea port upgrades and maintenance.
• Effective Date: Changes to fee uses take effect 180 days after the bill becomes law.

Significant Changes to Existing Law

The bill amends Section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (a law governing customs fees):

• Expands fee allocation from covering only "salaries and expenses" to include "capital costs" (long-term investments like construction and equipment).
• Adds passenger inspection services to the list of allowable uses for certain customs user fees.

These updates broaden how fees can be spent, shifting from short-term operational costs to long-term infrastructure needs, while adding transparency through reporting.

Potential Impacts

• On Government Agencies: CBP gains flexibility to fund sea port improvements using fee revenue, potentially reducing pressure on the federal budget. This could improve efficiency in processing imports and passengers, but requires coordination with Treasury for fee adjustments.
• On Citizens and Businesses: Importers and exporters (who pay the fees) may see slight increases in costs if rates rise to cover capital needs, but this could lead to faster, more reliable border processing, benefiting trade and travel. Sea ports avoid extra burdens for CBP's non-core facilities, potentially lowering their operational costs.
• On International Relations: Minimal direct impact, though enhanced sea port infrastructure could streamline international trade, making U.S. ports more competitive globally.

Main Stakeholders Affected

• U.S. Customs and Border Protection (CBP): Primary beneficiary, with expanded funding tools and reporting duties.
• Sea Ports of Entry: Gain protection from unwanted facility mandates and potential infrastructure upgrades funded by fees.
• Importers, Exporters, and Businesses: Pay the merchandise processing fees, which may adjust to cover new costs.
• Congressional Committees: Involved in oversight (e.g., Ways and Means, Homeland Security, Appropriations in both chambers) through required reports.
• U.S. Treasury Department: Must collaborate on fee rate decisions.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens CBP's fiscal autonomy under existing customs laws without creating new taxes, while the prohibition in Section 3 clarifies boundaries on agency demands to avoid overreach. The "rule of construction" preserves CBP's statutory powers, preventing conflicts with the Homeland Security Act.
• Constitutional: Aligns with Congress's authority over commerce and taxation (Article I, Section 8), as it refines user fees rather than imposing broad mandates. No apparent free speech, due process, or federalism issues.
• Political: Promotes bipartisan infrastructure support (introduced by members from both parties) and fiscal responsibility by using targeted fees for border security. The annual reports enhance congressional oversight, potentially influencing future budgets and trade policies, but could spark debate over fee hikes affecting businesses.

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

Sponsor

Rep. Lee, Laurel M. [R-FL-15]

Cosponsors (7)

Rep. Perez, Marie Gluesenkamp [D-WA-3], Rep. Brownley, Julia [D-CA-26], Rep. Buchanan, Vern [R-FL-16], Rep. Carter, Troy A. [D-LA-2], Rep. Golden, Jared F. [D-ME-2], Rep. Malliotakis, Nicole [R-NY-11], Rep. Webster, Daniel [R-FL-11]

Recent Actions

• 2025-07-10: Referred to the House Committee on Ways and Means.
• 2025-07-10: Introduced in House
• 2025-07-10: Introduced in House

Bill Versions

• CBP SPACE Act — issued 2025-07-10 — PDF (5 pages)