HB673 would move Homeland Security Investigations from U.S. Immigration and Customs Enforcement into a distinct entity within the Department of Homeland Security within two years. It would rename ICE as U.S. Immigration Compliance Enforcement and create new leadership structures at both HSI and ICE, including a Director for each entity and a Chief Counsel for HSI.
The bill also directs updated investigative guidelines addressing priority areas, the use of surveillance technologies, and the handling of sensitive information, with a joint DHS-DOJ review and a series of progress reports as the transfer proceeds.
The statutory design aims to clarify lines of authority, reduce overlap with other federal agencies, and formalize the administrative and legal framework for the transfer. It does so through a layering of transfers, references, and continuities intended to preserve existing duties and obligations while enabling a reorganized, more autonomous investigative function under DHS.
The bill does not, however, prescribe funding changes beyond directing agency control to implement the transition and issue new guidelines and MOUs.
At a Glance
What It Does
Transfers Homeland Security Investigations from ICE to a separate DHS entity within two years, creates a Director for HSI, and adds a Chief Counsel. It also redesignates ICE as U.S. Immigration Compliance Enforcement and establishes a leadership structure for that new designation. It requires updated investigative guidelines and a joint DHS-DOJ review with reporting cadence.
Who It Affects
HSI personnel and leadership, ICE/UC Enforcement leadership, DHS components coordinating investigations, DOJ and U.S. Attorneys’ Offices involved in cross-border and sensitive investigations, and agencies relying on interagency MOUs and data sharing.
Why It Matters
Sets a clearer command chain for major investigations, improves policy alignment with national and international threat priorities, and establishes governance around surveillance and information protection as investigations migrate between agencies.
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What This Bill Actually Does
The act reorganizes a core federal investigative function. By moving Homeland Security Investigations out of ICE and into a stand-alone entity within DHS, it creates a formal director-led structure to oversee HSI’s mission.
At the same time, the bill renames ICE to U.S. Immigration Compliance Enforcement and places a director at the helm of the renamed agency, ensuring continuity of leadership as the broader reorganization takes shape.
A central mechanism is the establishment of new investigative guidelines. These guidelines must align with national and departmental priorities, set expectations for surveillance technology use, and codify protections for sensitive information and ongoing investigations.
The Secretary of Homeland Security must collaborate with the Attorney General to produce these guidelines within two years and then keep them up to date as the transfer progresses.The bill also requires periodic reporting—every 180 days—on the transfer’s status, creating a formal timeline and oversight mechanism for the shift from ICE to the new HSI structure and the rebranding of ICE to Immigration Compliance Enforcement. The design preserves existing functions and authorities where they are, while enabling the transfer of personnel, assets, and responsibilities to new offices, with related savings and transition provisions to minimize disruption.
The result should be a more clearly delineated investigative pathway for complex, cross-border crimes, but it also introduces transitional risks related to coordination with other federal agencies and the management of the compliance-focused posture of the renamed agency.
The Five Things You Need to Know
The bill requires transferring Homeland Security Investigations to exist as a separate DHS entity within 2 years.
A Director for Homeland Security Investigations will lead the new entity, appointed by the President with Senate advice and consent.
ICE will be redesignated as U.S. Immigration Compliance Enforcement, with a Director at the head of the renamed agency.
Updated investigative guidelines must be issued within 2 years, covering priority policies, surveillance reporting, and protecting ongoing investigations.
Progress on the transfer must be reported every 180 days until the transfer is complete.
Section-by-Section Breakdown
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Transfer of Homeland Security Investigations to a separate DHS entity
Not later than two years after enactment, Homeland Security Investigations moves from ICE to exist as a separate entity within DHS. A Director of Homeland Security Investigations will lead the new entity, appointed by the President with Senate advice and consent. A Chief Counsel for HSI will provide specialized legal assistance, and the Homeland Security Act’s existing legal framework remains in effect for matters outside the transfer.
Redesignation of ICE to U.S. Immigration Compliance Enforcement
ICE becomes U.S. Immigration Compliance Enforcement upon transfer. A Director will head the renamed agency, appointed by the President with Senate advice and consent. All references in federal law and documents to ICE are deemed to refer to U.S. Immigration Compliance Enforcement, establishing a continuous identity during the transition.
Exercise of transferred authorities
Officers performing transferred functions may exercise all authorities available to them before the transfer, including authorities under other laws or MOUs with other agencies. This ensures functional continuity and enables the seamless performance of duties as the new structure is established.
Savings provisions for existing documents and proceedings
All existing orders, permits, contracts, and other actions that were issued under the function prior to transfer continue to be effective unless modified by proper authority. Pending proceedings and applications continue under the same terms, with no abatement solely due to the transfer.
Transfer of assets
Pursuant to directives from the Director of the Office of Management and Budget, personnel, property, records, and unexpended funds tied to the transferred functions become available to the new offices to carry out the functions. This supports a smooth transition and avoids funding gaps.
Delegation and assignment
Officials who receive transferred functions may delegate to subordinates as needed, but the original transferring official remains responsible for administering the function. This enables practical management while maintaining accountability.
OMB authority over transferred functions
The Director of the OMB may determine the precise scope of transferred functions and arrange incidental dispositions of personnel, assets, liabilities, contracts, and funds as necessary to implement the transfer, including terminating the affairs of entities that are dissolved by the act.
Vesting of functions and transfers
For purposes of this act, vesting of a function in a department or office via reestablishment is treated as a transfer. This clarifies how functions migrate within the government’s structure.
Availability of existing funds
Existing appropriations and funds tied to the transferred functions remain available for the duration of their validity to support termination and resolution activities related to the transfer.
Definitions
The act defines ‘function’ broadly (duty, authority, program, etc.) and ‘office’ to include any subordinate organizational unit within a department or agency to which a function is transferred.
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Who Benefits
- HSI investigators and staff gain clearer leadership and a dedicated remit under a named Director, reducing ambiguity about authority and priorities.
- DHS leadership and policy units benefit from a more focused, autonomous investigative entity aligned with national priorities and threat landscapes.
- U.S. Attorneys’ Offices and federal prosecutors relying on HSI for cross‑border, IP, and sex‑crime investigations gain clearer lines of coordination and accountability.
- Interagency partners (DOJ, FBI, and other law enforcement entities) see improved role clarity and reduced duplication of efforts.
- Civil‑liberties‑protective policy teams within DHS/DOJ benefit from formalized surveillance guidelines and information‑handling requirements.
Who Bears the Cost
- Transitional costs to restructure personnel, systems, and data-sharing capabilities within ICE/UC Enforcement and HSI operations.
- Potential short‑term coordination overhead as newly formed leadership and MOUs are established across DHS and DOJ.
- Ongoing compliance and reporting obligations that require administrative resources to maintain the 180‑day progress updates and joint reviews.
- Costs associated with implementing updated surveillance guidelines and data protection measures across the reorganized entities.
Key Issues
The Core Tension
Should the government separate HSI from ICE to gain focused leadership and clearer policy alignment, or risk transitional disruption and coordination challenges across DHS and DOJ during the two‑year transfer window?
The act creates a substantial reorganization within DHS that promises clearer authority and updated policy guidance for complex investigations. The transition raises practical questions about interagency coordination, data sharing, and the potential gaps in investigative capacity during the two‑year window.
While the savings provisions and continuity rules protect existing documents and ongoing proceedings, they do not by themselves ensure sufficient funding or staff for the new entity’s startup and sustained operations. The requirement for updated guidelines within two years and a joint DHS–DOJ review introduces an additional layer of oversight, but mobility of personnel and assets may complicate accountability across agencies during the transition.
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