S. 860, Break Up Suspicious Transactions of Fentanyl Act

S. 860 would subject foreign persons and entities to sanctions under the Fentanyl Sanctions Act if they provide significant support to opioid trafficking or receive property that is either used for or acquired through opioid trafficking. In addition, the bill would require the Administration to report to the Congress on its work to prevent foreign opioid trafficking.

If the enactment of S. 860 leads the Administration to broaden existing sanctions for involvement in opioid trafficking, more people would be denied visas by the Department of State, resulting in an insignificant decrease in revenues from fees. Although most visa fees are retained by the Department of State and spent, some collections are deposited into the Treasury as revenues. Denying foreign nationals entry into the United States also would reduce direct spending on federal benefits (emergency Medicaid or federal subsidies for health insurance, for example) for which those people might otherwise be eligible.

The bill would block transactions involving certain assets either in the United States or under the control of people or entities in the United States. Under the bill, any person or entity violating those prohibitions would be subject to civil or criminal monetary penalties. Such penalties are recorded as revenues, and a portion can be spent without further appropriation.

On the basis of data about similar sanctions, CBO estimates any additional sanctions imposed under the bill would affect a small number of people. Thus, enacting S. 860 would have insignificant effects on revenues and direct spending, and would, on net, reduce deficits by insignificant amounts over the 2025-2035 period.

Using information about the cost of reports similar to those required by the bill, CBO estimates that implementing S. 860 would cost less than $500,000 over the 2025-2030 period. Such related spending would be subject to the availability of appropriated funds.

S. 860 would impose a private-sector mandate as defined in the Unfunded Mandates Reform Act (UMRA) by expanding the scope of authority for the Administration to regulate transactions between entities in the United States and foreign entities and officials of foreign governments who would be subject to sanctions under the bill. That expansion would result in additional burdens on individuals and entities, such as banks, in the United States that are required to monitor and report on foreign transactions and to block access to certain assets owned by sanctioned entities. It also would prohibit transactions between entities in the United States and sanctioned parties that otherwise would be permitted under current law.

The cost of the mandate would be any income or profit lost as a result of the bill’s enactment. CBO expects that because a small number of people or entities would be affected, the loss of income from any incremental increase in restrictions imposed by the bill would be small as well. CBO estimates that the cost of the mandate would fall well below the annual threshold established in UMRA for private-sector mandates ($206 million in 2025, adjusted annually for inflation).

S. 860 contains no intergovernmental mandates as defined in UMRA.

The CBO staff contacts for this estimate are Sunita D’Monte (for federal costs) and Brandon Lever (for mandates). The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.

Phillip L. Swagel

Director, Congressional Budget Office