AIDA
Sponsored By: Representative Cherfilus-McCormick
Introduced
Summary
Mobilize the African and Caribbean diaspora for development and cheaper remittances. This bill would create tax incentives, matching funds, and new Treasury and DFC programs to channel diaspora capital into projects and cut the cost of sending money.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Lower taxes on remittances you send
You would be able to deduct up to $3,000 each year for qualified remittances sent to people in African Union or CARICOM countries. The money would need to be used for housing, farming, school, health care, or small business. The bill would also repeal the federal remittance excise tax for transfers made after December 31, 2025. It states that personal remittances would not be taxed and defines covered countries and what counts as a remittance.
Tax break for diaspora investments
If you make a certified diaspora investment after enactment, you would be able to exclude dividends and interest from your income. Your basis at sale would be set to fair market value, but the excluded payments plus the step-up would be capped at $12,000 per year. The $12,000 cap would adjust for inflation for tax years after 2025.
More ways for diaspora to invest
The DFC would match eligible diaspora or Caribbean development investments up to $5,000 per taxpayer, with inflation adjustments. The SEC would treat some African Diaspora investors as accredited in offerings where DFC or another development institution invests, if diaspora purchases stay under 25% and the issuer discloses totals. Treasury and DFC would help countries issue diaspora bonds with credit support, technical help, and co-marketing. Together, this could expand safer, simpler ways to invest back home.
Help to start diaspora remittance firms
Treasury would remove undue regulatory barriers for fintech remittance providers owned by members of the African Diaspora. A new Remittance Innovation Fund would offer technical help and seed funding to start or grow these firms. These steps aim to lower transfer costs and improve secure, traceable payments.
Sponsors & CoSponsors
Sponsor
Cherfilus-McCormick
FL • D
Cosponsors
Jackson (IL)
IL • D
Sponsored 7/22/2025
Carson
IN • D
Sponsored 9/8/2025
Davis (IL)
IL • D
Sponsored 9/8/2025
Del. Plaskett, Stacey E. [D-VI-At Large]
VI • D
Sponsored 9/8/2025
Rep. Bell, Wesley [D-MO-1]
MO • D
Sponsored 9/30/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov