H.R. 8172: Federal Benefits Repatriation Verification Act of 2026

This bill, titled the Federal Benefits Repatriation Verification Act of 2026, aims to establish rules for noncitizens who receive federal benefits regarding the transfer of money outside of the United States. Below are the key components of the bill:

Definitions

• Covered Individual: A noncitizen who is a recipient of federal benefits.
• Federal Benefits: Any assistance provided by federal agencies, including welfare programs like Social Security, SNAP, Medicaid, and others.
• Noncitizen: An individual who is not a citizen or national of the United States.
• Repatriation of Funds: The transfer of money from the U.S. to a foreign account or individual.
• Treasury Repatriation Verification Database: A centralized system to monitor compliance with the bill’s provisions.

Restrictions on Repatriation of Funds

• A noncitizen who receives federal benefits cannot send more than $1,000 abroad within a 12-month period.
• Compliance with this limit is required to maintain eligibility for federal benefits. Violations will make the noncitizen ineligible for these benefits.
• Noncitizens must annually certify that they have not exceeded the repatriation limit as part of their benefits eligibility review.
• Federal agencies must work with the Department of the Treasury to verify compliance.

Duties of Financial and Remittance Institutions

• Financial institutions and remittance providers must report all transactions made by covered individuals to the Department of the Treasury.
• They are required to check the Treasury Repatriation Verification Database to ensure that a transfer would not exceed the repatriation limit.
• If a transfer would exceed the limit, the transaction must be denied, and the attempted transfer reported.

Establishment of the Treasury Repatriation Verification Database

• The Secretary of the Treasury must create and maintain a secure database to track compliance.
• This database will include personal identification data, records of transactions, compliance indicators, and be accessible to relevant federal and state agencies as well as financial institutions.
• Data sharing must comply with federal privacy laws and cybersecurity standards.

Enforcement and Penalties

• If a noncitizen violates the repatriation limit, their federal benefits will be suspended until they are in compliance.
• Federal agencies can recover improper payments made during periods of noncompliance.
• Financial institutions failing to comply with reporting requirements could face civil penalties and additional fines for repeated violations.

Rulemaking and Effective Date

• The Secretary of the Treasury must issue regulations to implement this bill within 12 months of its enactment.
• The bill will take effect two years after enactment, although preliminary activities can begin immediately.

Relevant Companies

• MA - Mastercard Incorporated: As a major payment processing company, Mastercard may face compliance requirements related to the reporting and verification processes outlined in the bill.
• V - Visa Inc.: Similar to Mastercard, Visa operates a payment network that could be impacted by mandatory reporting of transactions involving noncitizens under this legislation.
• C - Citigroup Inc.: As a financial institution that provides various banking and money transfer services, Citigroup will need to adapt to the transaction-denial requirements if customers exceed the repatriation limits.