S. 842, No Hezbollah In Our Hemisphere Act

S. 842 would require the Administration to assess and report to the Congress whether jurisdictions in Latin America could be designated as terrorist sanctuaries, as defined under the Foreign Relations Authorization Act of Fiscal Year 1988 and 1989. To inform that determination, the bill specifically directs the Administration to consider whether such jurisdictions have allowed Hezbollah to operate freely within their borders. S. 842 also would authorize the Administration to restrict visas for any government officials from areas designated as terrorist sanctuaries unless those officials have taken significant action to prevent terrorist activity within their jurisdiction.

Under current law, the Administration can restrict visas for individuals who support terrorist activity. If the enactment of S. 842 leads the Administration to broaden those sanctions, 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.

On the basis of data about similar visa restrictions, CBO estimates any additional visa restrictions imposed under the bill would affect a small number of people. Thus, enacting S. 842 would decrease revenues and direct spending by insignicant amounts, and would, on net, reduce deficits by insignificant amounts over the 2025-2035 period.

S. 842 would require the Administration to report to the Congress whenever it waives the imposition of sanctions authorized by the bill. Using information about the cost of reports similar to those required by the bill, CBO estimates that implementing S. 842 would cost less than $500,000 over the 2025-2030 period. Such related spending would be subject to the availability of appropriated funds.

The CBO staff contact for this estimate is Emma Uebelhor. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.