This legislation, titled the "CBP SPACE Act," amends the Consolidated Omnibus Budget Reconciliation Act of 1985 to expand the permissible uses of merchandise processing fees . Previously limited to salaries and expenses, these fees can now also be used to cover capital costs incurred by U.S. Customs and Border Protection (CBP). Specifically, this includes capital costs associated with passenger inspection services, aiming to provide a dedicated funding source for infrastructure. The bill includes a Sense of Congress encouraging the Secretary of the Treasury and the CBP Commissioner to jointly set appropriate fee levels to adequately fund equipment upgrades and facility construction, improvement, and maintenance at U.S. sea ports of entry. Furthermore, it prohibits the CBP Commissioner from requiring sea ports to provide or maintain administrative, training, or recreational facilities for CBP inspection services. Finally, the bill mandates an annual report to Congress detailing the amount of merchandise processing fees collected, the portion directed to inspection facilities at sea ports, and their outstanding capital needs.