119-hr4586

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4586 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 4586

To establish a comprehensive strategy to support African and Caribbean 
 diaspora engagement in development through reduced remittance costs, 
 investment incentives, and institutional partnerships.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 July 22, 2025

 Mrs. Cherfilus-McCormick (for herself and Mr. Jackson of Illinois) 
 introduced the following bill; which was referred to the Committee on 
 Ways and Means, and in addition to the Committees on Foreign Affairs, 
 and Financial Services, 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

_______________________________________________________________________

 A BILL

To establish a comprehensive strategy to support African and Caribbean 
 diaspora engagement in development through reduced remittance costs, 
 investment incentives, and institutional partnerships.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``African Diaspora Investment and 
Development Act'' or the ``AIDA''.

SEC. 2. FINDINGS.

 Congress finds the following:

    (1) The United States is home to approximately 6,600,000 
 first generation African and Caribbean immigrants, nested 
 within a broader population of 46,000,000 African Americans, 
 representing vast economic, intellectual, and cultural capital, 
 with longstanding economic and cultural ties to their countries 
 of origin.

    (2) Many members of these and other diaspora and immigrant 
 populations annually transmit to their countries of origin or 
 descent portions of their incomes or other earnings--transfers 
 known as remittances--that in the aggregate often are large and 
 significantly contribute to economic growth, development, and 
 human welfare in recipient countries.

    (3) Remittances to Africa were estimated at over 
 $91,000,000,000 in 2023--transfers which sustain families, fund 
 education and healthcare, finance small businesses, and fill 
 gaps in national infrastructure.

    (4) An estimated $19,499,000,000 was remitted to the 
 Caribbean in 2023, with those countries receiving billions in 
 essential family and community support.

    (5) Sub-Saharan Africa remains the most expensive region 
 for sending remittances, with average costs of 7.73 percent to 
 send $200 in Q1 2024. In contrast, the average cost for Latin 
 America and the Caribbean is 5.97 percent.

    (6) If the global average cost of remittances is reduced to 
 the Sustainable Development Goal target of 3 percent, 
 developing countries could save between $5,000,000,000 and 
 $32,000,000,000 annually and redirect such resources to 
 international economic growth and development investment.

    (7) The global remittance market was valued at 
 $784,250,000,000 in 2022 and is projected to reach 
 $1,330,000,000,000 by 2032, creating significant employment and 
 economic activity across the financial services industry.

    (8) As the Economist noted on April 24, 2025, ``Emigration 
 from Africa will change the world''--not as a threat, but as a 
 mutual opportunity for global growth, shared prosperity, and 
 demographic balance.

    (9) Yet the United States lacks a coherent framework to 
 channel this economic power into formal investment, leaving 
 diaspora members to operate in fragmented, uncoordinated 
 environments with limited access to incentives or protections.

    (10) The future of United States-Africa relations does not 
 rest solely on diplomatic summits or state-to-state aid. It 
 lies in the millions of quiet financial acts made every month 
 by diaspora citizens: a tuition payment, a clinic donation, a 
 loan to launch a cousin's shop. These flows deserve the full 
 support of United States law and policy.

    (11) By embracing the diaspora not only as emotional kin 
 but as strategic co-investors, this Act positions the United 
 States at the frontier of global economic cooperation. It 
 affirms that America's strength abroad rests not only in its 
 institutions--but in the networks of commitment and capital 
 held by its people.

SEC. 3. STATEMENT OF POLICY.

 It is the policy of the United States to--

    (1) recognize African and Caribbean diaspora communities as 
 legitimate partners in United States foreign economic policy, 
 development assistance, and national investment strategy;

    (2) recognize the role of regional and country-specific 
 diasporas in cultural diplomacy, people-to-people ties, and 
 various diasporas' expanding contribution to socioeconomic 
 development;

    (3) endeavor to reduce the cost of sending remittances 
 including through policies aimed at increasing competition 
 within the international financial transfers sub-sector and 
 reducing related taxes or other administrative costs and 
 maximize their potential to foster inclusive economic growth;

    (4) safeguard the integrity and affordability of remittance 
 flows, including by prohibiting taxation on personal 
 remittances;

    (5) promote financial inclusion and reduce transaction 
 costs through market competition, fintech innovation, and 
 diaspora-owned remittance platforms;

    (6) incentivize formal, productive investment in diaspora 
 countries of origin through targeted United States tax policy, 
 finance instruments, and legal safeguards; and

    (7) pursue the global Sustainable Development Goal of 
 reducing the average cost of remittances to 3 percent, 
 especially for low-value transfers and high-cost corridors, 
 through market incentives, innovation, and competition rather 
 than price controls.

SEC. 4. SUPPORT FOR DIASPORA INVESTMENTS FROM THE UNITED STATES 
 INTERNATIONAL DEVELOPMENT FINANCE CORPORATION.

    (a) In General.--The Chief Executive Officer of the United States 
International Development Finance Corporation shall carry out a program 
to support, in the form of matching up to $5,000 (adjusted for 
inflation) in funds per taxpayer, investments that the Chief Executive 
Officer, in coordination with the Secretary of the Treasury, determines 
are investments by the African diaspora or investments in Caribbean 
countries that meet measurable development goals in health, education, 
agriculture, clean energy, or youth employment in Africa or the 
Caribbean countries, respectively.

    (b) Investments by the African Diaspora in Certain Issuers.--The 
Securities and Exchange Commission shall issue rules to treat a member 
of the African Diaspora who is not an accredited investor as an 
accredited investor for purposes of the securities laws with respect to 
securities offered or sold by an issuer, if--

    (1) the United States International Development Finance 
 Corporation or another qualified development finance 
 institution holds an investment in the issuer, as determined by 
 the Commission;

    (2) no more than 25 percent of the total funds raised by 
 the issuer in the applicable offering of securities is purchase 
 by members of the African Diaspora in reliance on this 
 subsection; and

    (3) the issuer discloses to the public the amount of 
 securities, in the aggregate, purchased by members of the 
 African Diaspora in reliance on this subsection.
            (c) Special Window for Diaspora-Led Investment.--In addition to the 
program described in subsection

    (a) , the Chief Executive Officer of the 
United States International Development Finance Corporation shall, 
using applicable authorities provided by the BUILD Act of 2018 (22 
U.S.C. 9601 et seq.), establish a special window to provide support to 
diaspora-led investment funds, social enterprises, and infrastructure 
projects in African and Caribbean countries.

SEC. 5. DIASPORA INFRASTRUCTURE BOND FRAMEWORK.

 The Secretary of the Treasury and the United States International 
Development Finance Corporation are authorized to provide support for 
the issuance of diaspora bonds by African and Caribbean nations through 
credit enhancement, technical assistance, and co-marketing with 
diaspora investment vehicles.

SEC. 6. MARKET EXPANSION FOR REMITTANCE PROVIDERS.

    (a) Removing Regulatory Barriers.--The Secretary of the Treasury 
shall issue rules to remove undue regulatory barriers applicable to 
remittance providers that--

    (1) are owned by members of the African Diaspora; and

    (2) are fintech-driven.

    (b) Remittance Innovation Fund.--

    (1) Establishment.--There is established in the Treasury a 
 fund to be known as the ``Remittance Innovation Fund''.

    (2) Use of fund.--The Secretary of the Treasury shall use 
 amounts in the Remittance Innovation Fund to promote low-cost, 
 secure, and traceable financial transfers by--
        (A) providing technical support to remittance 
 providers described in subsection

    (a) ; and
        (B) providing seed funding to persons seeking to 
 establish a remittance provider described in subsection

    (a) .

SEC. 7. DEDUCTION FOR REMITTANCES USED FOR QUALIFIED PURPOSES.

    (a) In General.--Part VII of subchapter B of chapter 1 of subtitle 
A of the Internal Revenue Code of 1986 is amended by inserting after 

section 223 the following new section:

``

SEC. 223A. DEDUCTION FOR REMITTANCES USED FOR QUALIFIED PURPOSES.

 ``

    (a) Deduction Allowed.--In the case of an individual there shall 
be allowed as a deduction an amount equal to so much of the qualified 
remittance transfers made by the taxpayer to recipients residing in a 
covered country during the taxable year as do not exceed $3,000.
 ``

    (b) Qualified Remittance Transfer.--For purposes of this section, 
the term `qualified remittance transfer' means a remittance transfer 
which is used by the recipient for housing, agriculture, education, 
healthcare, or small enterprise support.
 ``
            (c) Covered Country.--For purposes of this section, the term 
`covered country' means a member state of the African Union or a member 
state of the Caribbean Community

    (CARICOM) .
 ``
            (d) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary or appropriate to carry out the 
purposes of this section.''.

    (b) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of subtitle A of such Code is amended by 
inserting the following new item after the item relating to 

section 223:

``

Sec. 223A. Deduction for remittances used for qualified purposes.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to remittances made after the date of the enactment of this Act.

SEC. 8. EXCLUSION OF INCOME ATTRIBUTABLE TO CERTIFIED DIASPORA 
 INVESTMENTS.

    (a) In General.--Chapter 1 of subtitle A of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
subchapter:

 ``Subchapter AA--Certified Diaspora Investments

``

Sec. 1400AA. Certified diaspora investments.

``

SEC. 1400AA. CERTIFIED DIASPORA INVESTMENTS.

 ``

    (a) In General.--In the case of a certified diaspora investment--
 ``

    (1) gross income for the taxable year shall not include 
 any dividend or interest payments received with respect to such 
 investment, and
 ``

    (2) the basis of such property shall be equal to the fair 
 market value of such investment on the date that the investment 
 is sold or exchanged.
 ``

    (b) Limitation.--The sum of the amount of payments taken into 
account under paragraph

    (1) of subsection

    (a) and the amount of the 
increase in basis of assets of the taxpayer under paragraph

    (2) of such 
subsection for any taxable year may not exceed $12,000.
 ``
            (c) Qualified Diaspora Investment.--For purposes of this section 
the term `qualified diaspora investment' means any equity, debt, or 
blended capital investment in a company or project based in a covered 
country (as defined in 

section 223A) and duly registered with such 
country's securities authority or channeled through a fund recognized 
by a United States development finance institution.
 ``
            (d) Inflation Adjustment.--
 ``

    (1) In general.--In the case of any taxable year 
 beginning after 2025, the $12,000 amount in subsection

    (b) shall be increased by an amount equal to--
 ``
        (A) such dollar amount, multiplied by
 ``
        (B) the cost-of-living adjustment determined 
 under 

section 1

    (f)

    (3) for the calendar year in which 
 the taxable year begins, determined by substituting 
 `calendar year 2024' for `calendar year 2016' in 
 subparagraph
        (A)
            (ii) thereof.
 ``

    (2) Rounding.--If any increase under paragraph

    (1) is not 
 a multiple of $100, such increase shall be rounded to the 
 nearest multiple of $100.
 ``

    (e) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary or appropriate to carry out the 
purposes of this section.''.

    (b) Clerical Amendment.--The table of subchapters for chapter 1 of 
subtitle A of such Code is amended by inserting after the item relating 
to subchapter Z the following new item:

``Subchapter AA. Certified diaspora investments.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to investments made after the date of the enactment of this Act.

SEC. 9. REPEAL OF REMITTANCE EXCISE TAX.

    (a) In General.--Chapter 36 of the Internal Revenue Code of 1986 is 
amended by repealing subchapter C (and the table of subchapters for 
such chapter is amended by striking the item relating to such 
subchapter).

    (b) Effective Date.--The amendments made by this section shall 
apply to transfers made after December 31, 2025.

SEC. 10. REPORT.

    (a) Annual Report Required.--Not later than 1 year after the date 
of the enactment of this Act, and annually thereafter, the Secretary of 
the Treasury, acting through the Director of the Consumer Financial 
Protection Bureau, the Board of Governors of the Federal Reserve, and 
the Secretary of State, in consultation with the stakeholders described 
in subsection

    (b) , shall submit to the relevant congressional 
committees a report that addresses--

    (1) progress toward and a strategy for encouraging 
 remittance and reducing transaction costs;

    (2) remittance cost trends and barriers;

    (3) impact of United States tax policy on diaspora 
 investments;

    (4) institutional collaboration with African governments, 
 governments of Caribbean countries, and diaspora-led ventures;

    (5) uptake and effectiveness of financial instruments 
 created under this Act;

    (6) challenges and obstacles associated with achieving the 
 aforementioned goals; and

    (7) recommendations relating to programmatic or 
 appropriations measures that could potentially enhance the 
 implementation of the strategy, including legislative or 
 executive policy changes for such enhanced implementation.

    (b) Consultations.--In developing the report required by this 
section, the Secretary of the Treasury and the Secretary of State 
shall, as appropriate and practicable, consult with--

    (1) stakeholders in the United States and in Africa and 
 Caribbean from the private sector, civil society, and African 
 diaspora;

    (2) relevant agencies;

    (3) State, local, and Tribal governments; and

    (4) other relevant United States development agencies and 
 entities.
            (c) Final Report.--Not later than 10 years after the date of the 
submission of the initial report required by subsection

    (a) , the 
President shall submit to the appropriate congressional committees a 
report that assesses progress over the preceding decade of the 
strategy. Such report shall also include the following:

    (1) An assessment of the progress made in the 
 implementation of the strategy over the preceding decade with 
 respect to each of the goals described in subsection

    (a) .

    (2) An assessment of the successes, challenges, and 
 effectiveness of the strategy and its implementation.

    (3) Recommended legislative or executive policy changes 
 relevant to addressing any gaps, policy or program 
 shortcomings, or other outstanding challenges relating to the 
 goals of the strategy, along with descriptions of prospective 
 follow-up activities necessary to address such challenges.

    (4) Recommendations relating to programmatic or 
 appropriations measures that could potentially enhance the 
 implementation of the strategy, including legislative or 
 executive policy changes for such enhanced implementation.

SEC. 11. DEFINITIONS.

 In this Act:

    (1) Appropriate congressional committees.--The term 
 ``appropriate congressional committees'' means--
        (A) the Committee on Foreign Affairs, the Committee 
 on Ways and Means, and the Committee on Financial 
 Services of the House of Representatives; and
        (B) the Committee on Foreign Relations, the 
 Committee on Finance, and the Committee on Banking, 
 Housing, and Urban Affairs of the Senate.

    (2) Africa.--The term ``Africa'' means the 54 countries 
 recognized by the African Union.

    (3) African diaspora.--The term ``African Diaspora'' means 
 individuals of African or Caribbean descent residing outside 
 their countries of origin, including first-generation 
 immigrants and descendants.

    (4) Caribbean countries.--The term ``Caribbean countries'' 
 means the 15 countries of the Caribbean Community

    (CARICOM) .

    (5) Remittances.--The term ``remittances'' means personal 
 transfers made across borders for family support or micro-
 investment, and does not include corporate or institutional 
 capital flows.
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