Overview
Title
Interest Rate Paid on Cash Deposited To Secure U.S. Immigration and Customs Enforcement Immigration Bonds
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ELI5 AI
The U.S. Department of the Treasury says that if you give them money to hold for certain immigration bonds, they'll pay you back a little extra—3% more—for keeping it with them from the start of 2025 until the end of March 2025.
Summary AI
The Department of the Treasury has announced that the interest rate for U.S. Immigration and Customs Enforcement Immigration Bonds is set at 3% per annum for the period from January 1, 2025, to March 31, 2025. This rate is determined by the Secretary of the Treasury and cannot exceed 3% or be less than zero. Interest is calculated quarterly based on the average rates of 91-day Treasury bills from the preceding quarter. More information can be found on the Treasury and Federal Register websites.
Abstract
For the period beginning January 1, 2025, and ending on March 31, 2025, the U.S. Immigration and Customs Enforcement Immigration Bond interest rate is 3 per centum per annum.
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Sources
AnalysisAI
The document, issued by the Department of the Treasury and published in the Federal Register, sets forth the interest rate applicable to U.S. Immigration and Customs Enforcement (ICE) Immigration Bonds for a specific quarter in 2025. From January 1 to March 31, 2025, the interest rate is set at 3% per annum, as determined by the Secretary of the Treasury. This notice is issued as a routine update on the interest rate, which is reviewed and potentially adjusted every quarter.
Summary of the Document
The document provides key details regarding the interest rate for ICE immigration bonds. According to both 8 U.S.C. 1363(a) and 8 CFR 293.2, the interest rate cannot exceed 3% annually. It is determined quarterly based on the average rates of 91-day Treasury bills auctioned in the prior quarter, but it must not be less than zero. The decision was reviewed by Gary Grippo, the Deputy Assistant Secretary for Public Finance, and was electronically signed by Heidi Cohen for publication purposes.
Significant Issues and Concerns
Understanding Legal References: The document references specific legal statutes (8 U.S.C. 1363(a) and 8 CFR 293.2) without offering further explanation. This can make it difficult for those unfamiliar with federal regulations to fully understand the basis for these regulatory decisions.
Complexity of Financial Terms: The use of the term "3 per centum per annum" might confuse readers who are not familiar with this older terminology. This could have been replaced by a more modern term such as "annual percentage rate" to improve clarity.
Contacts and Access to Information: Specific contact information is included, which risks becoming outdated. This might lead to difficulties for individuals trying to reach the appropriate contacts over time. Furthermore, there is a lack of guidance on where to find more detailed policy information, which could enhance transparency and public understanding.
Calculation Process: The determination of interest rates based on 91-day Treasury bills is noted without a detailed explanation. Understanding this calculation could be challenging for some readers, making the financial mechanism less transparent to the public.
Broad Public Impact
This document broadly affects individuals and entities involved with ICE immigration bonds. By setting the interest rate at 3% per annum, it provides a predictable and stable financial expectation for those interacting with immigration bond processes. The quarterly update ensures it remains relevant to changing economic conditions through Treasury bill rates as a benchmark.
Impact on Specific Stakeholders
For bondholders, this document provides clarity and predictability regarding the interest earnings on their security deposits. By pegging the rate to not exceed 3% or fall below zero, it strives for a balance between offering a return on funds held in trust and managing federal fiscal responsibilities.
Lawyers and financial advisors engaging with immigration issues may note that specific legal references require further research to adequately advise clients, which could involve more groundwork in explaining these legalities to clients.
Overall, the setting of the interest rate at 3% may be viewed positively as it ensures a foreseeable return rate and aligns with statutory limitations. Nevertheless, the document could benefit from greater transparency and accessibility, which would assure the public and stakeholders of the reasoning and application of these financial decisions.
Issues
• The document refers to compliance with 8 U.S.C. 1363(a) and 8 CFR 293.2 but does not provide a direct explanation or context for non-expert audiences, which could make it difficult for some readers to understand the legal basis for the interest rate cap.
• The document contains specific contact information, which could become outdated or incorrect over time, potentially leading to confusion if individuals try to reach the listed contacts.
• The document mentions the determination of interest rates based on the 91-day Treasury bills without a detailed explanation of what these are or how they might affect the average reader, possibly leading to difficulty in fully understanding the calculation process.
• The phrase '3 per centum per annum' is an outdated term for annual percentage rate and might be confusing for readers unfamiliar with this terminology.
• The document does not provide information about how individuals can access more detailed explanations of the policies or how the determinations are made, which might be useful for transparency.