Stopping Transfers of Public Funds Abroad Act
Summary
The "Stopping Transfers of Public Funds Abroad Act" aims to prevent individuals receiving public assistance from sending remittance transfers abroad. It mandates that applicants for public assistance programs sign a declaration stating they will not make such transfers while receiving benefits. Violation of this declaration would result in a $100,000 fine.
The bill defines "public assistance program" by referencing specific sections of the Code of Federal Regulations. It also uses the definition of "remittance transfer" found in the Electronic Fund Transfer Act.
The act would take effect 30 days after its enactment, applying to payments or benefits provided after that date.
Expected Effects
This act, if enacted, would restrict how individuals receiving public assistance can use those funds. It would likely reduce the amount of money being sent abroad from individuals on public assistance.
The act may also create additional administrative burdens for federal agencies responsible for managing public assistance programs. These agencies would need to implement and enforce the declaration requirement.
Potential Benefits
- Potentially reduces the outflow of public assistance funds to foreign countries.
- May deter individuals from fraudulently claiming public assistance to send money abroad.
- Could free up public funds for other domestic programs or reduce the overall tax burden.
- May increase public confidence in the integrity of public assistance programs.
- Could incentivize recipients to spend funds within the US economy.
Most Benefited Areas:
Potential Disadvantages
- May disproportionately affect immigrant communities who rely on remittances to support family abroad.
- Could be seen as an infringement on the rights of individuals receiving public assistance.
- The $100,000 fine may be excessive and punitive.
- Enforcement could be challenging and costly, requiring significant administrative resources.
- May create a chilling effect, discouraging eligible individuals from seeking needed assistance.
Constitutional Alignment
The bill's constitutionality is debatable. While Congress has the power to set conditions on the receipt of federal funds under the Spending Clause (Article I, Section 8), these conditions must not violate other constitutional rights. The act could be challenged as infringing on the right to personal liberty and freedom to spend one's money as one chooses, although this right is not explicitly enumerated in the Constitution.
Additionally, the penalty of $100,000 may be challenged as an excessive fine under the Eighth Amendment, which prohibits cruel and unusual punishments and excessive fines. The due process clause of the Fifth Amendment could also be invoked if the enforcement mechanisms are deemed unfair or arbitrary.
However, the government could argue that the restriction is reasonably related to the legitimate government interest of ensuring that public assistance funds are used for their intended purpose within the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).