No American Benefits Abroad Act
- Bill Number
- H.R. 7097
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-01-15: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-02-04T21:34:13Z
AI-Generated Summary
Purpose of the Legislation
The "No American Benefits Abroad Act" (H.R. 7097) aims to prevent individuals receiving U.S. public assistance benefits from sending money abroad through international wire transfers. It seeks to ensure that taxpayer-funded benefits are used domestically and not transferred overseas.
Key Provisions
- Prohibition on Transfers: Individuals receiving public assistance cannot use international wire transfers to send money from the United States to any person or entity outside the country.
- Disclosure Requirement for Providers: Companies or services offering international wire transfers must obtain written confirmation from customers stating whether they receive public assistance before processing the transfer.
- Definition of Public Assistance: This includes any financial payment or benefit from a means-tested program (programs where eligibility depends on low income or limited resources, such as certain welfare or food assistance programs).
Significant Changes to Existing Law
- This bill introduces a new federal restriction on the use of public benefits, specifically targeting international money transfers, which were previously unregulated in this context.
- It imposes a novel compliance obligation on wire transfer providers (e.g., banks or remittance services like Western Union), requiring them to verify and document customers' benefit status—a step not currently mandated under existing financial regulations like the Bank Secrecy Act.
Potential Impacts
- On Government Agencies: Agencies administering public assistance (e.g., those overseeing programs like SNAP or TANF) may need to collaborate with financial regulators to enforce the law, potentially increasing administrative costs for monitoring and penalties.
- On Citizens: Public assistance recipients, often low-income individuals or families, will face restrictions on sending money abroad (e.g., to support relatives overseas), which could limit personal financial choices without alternative options like cash or domestic transfers.
- On International Relations: The law may indirectly affect remittances (money sent by immigrants to home countries), potentially straining ties with nations reliant on U.S. inflows, though it targets only benefit recipients and not all senders.
- Overall, it could reduce unintended overseas distribution of U.S. benefits but might create enforcement challenges if providers or recipients find workarounds.
Main Stakeholders Affected
- Public Assistance Recipients: Primarily low-income U.S. individuals or households who rely on means-tested programs and may use wire transfers for family support abroad.
- Wire Transfer Providers: Financial institutions and remittance services that must implement new verification processes, facing potential liability for non-compliance.
- Government Entities: Federal agencies like the Department of Health and Human Services or Treasury, involved in benefit programs and financial oversight, will handle enforcement.
- Immigrant and Diaspora Communities: Groups often using remittances, where benefit recipients might be affected disproportionately.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: The bill could lead to enforcement disputes, such as how providers verify "public assistance" status without accessing private benefit records, potentially requiring new regulations or data-sharing rules. Penalties for violations are not specified, leaving room for future clarification.
- Constitutional Implications: It may raise questions about restrictions on personal property rights (how individuals use their benefits) or equal protection under the law, as it singles out a group based on income status; however, Congress has broad authority to condition public benefits.
- Political Implications: The legislation reflects debates on welfare program integrity and immigration, potentially sparking controversy over targeting vulnerable populations versus protecting taxpayer funds, with bipartisan sponsorship noted in the bill's introduction.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Hunt, Wesley [R-TX-38], Rep. Steube, W. Gregory [R-FL-17]
Recent Actions
- 2026-01-15: Referred to the House Committee on Financial Services.
- 2026-01-15: Introduced in House
- 2026-01-15: Introduced in House
Bill Versions
- No American Benefits Abroad Act — issued 2026-01-15 — PDF (2 pages)