Reauthorization

The EB-5 regional center program lapsed on June 30, 2021, and requires Congressional action to reauthorize the program.  This page organizes resources and information specific to reauthorization, and will be updated regularly. (For updates on other EB-5 law/policy issues, see my old Washington Updates page.)

Last updated: July 7, 2021 (updated Advocacy Events)

1. What’s Happening?
2. Advocacy Actions
3. Proposed Legislation
4. Advocacy Events
5. Articles from Industry and Media
6. Articles from Congress/Government
7. Investor Data Links
8. Law and Policy Links

What’s Happening?

The regional center program expired on June 30, 2021, while industry and Congress continue to argue over reauthorization legislation.

• For USCIS guidance during the program lapse, see the “Alert” on the USCIS website page for Approved EB-5 Immigrant Investor Regional Centers
• For a brief and solid overview of the situation, see Robert Divine’s articles “A swirl of EB-5 Developments” (June 25, 2021) and “The problem with EB-5’s reliance on temporary legislation” (April 15, 2021). For a deep dive into the details, see the Investment Migration Report webinar on June 23

Advocacy Actions

• The Coalition to Save and Create Jobs, is a website that organizes IIUSA’s reauthorization efforts, including advocacy resources and suggested action items.
• Actions organized by other parties:
  • Join the American Immigrant Investor Alliance (AIIA), share your story, and consider volunteer opportunities. This introductory webinar introduces AIIA’s team and current efforts. See the AIIA blog for the latest news.
  • This Telegram group discusses EB-5 advocacy https://t.me/EB5Advocacy
  • EB-5 Investment Coalition and https://www.aa-ed.org/ are active in advocacy, but have not historically invited general participation. Another group that hasn’t responded to me, but may be active: http://eb5ai.org/
• Know of others who should be mentioned here? Please email suzanne@lucidtext.com

Advocacy Events

Upcoming events:

• IIUSA is hosting a webinar on reuathorization efforts and the IIUSA advocacy plan on June 7 at 12 pm ET. Register here.

• Recordings of past events:
  • IIUSA hosted a webinar on June 7 at 12 pm ET to discuss reauthorization efforts and the IIUSA advocacy plan. Recording available on YouTube.
  • AIIA hosted a Town Hall on July 1 to provide EB-5-investor-focused updates on EB-5 reform negotiations. Recording available on YouTube.
  • EB5IC released a pre-recorded video on July 1, 2021 to discuss their advocacy.
  • Recording of an Investment Migration Report webinar on June 23 interviewing IIUSA Executive Director Aaron Grau regarding the process and prospects for reauthorization legislation.
  • Recording of the AIIA Introductory Webinar on June 12 outlining the investor-focused approach to advocacy, and providing legislative updates as of mid June.
  • Recording of the June 7 Behring Companies webinar giving the “holistic reform” perspective.
  • Recording of the ILW Seminar on Regional Center Reauthorization with IIUSA (April 17, 2021)
  • Attorney Carolyn Lee hosted a series of helpful webinars with investors and industry representatives in May 2021. Recordings available here.
  • IIUSA Leaders Advocacy Summit (April 6-7, 2021) included several helpful panels (free recordings available here):
    • Capitol Hill Update and IIUSA Advocacy Strategy (hear from IIUSA’s lobbyists)
    • EB-5 Legislation Review (hear from IIUSA experts analyzing the Grassley/Leahy bill)
    • Congressional Staff Roundtable (hear from staffers at Senator Grassley and Senator Leahy’s offices)
  • The IIUSA Q1 2021 Government Affairs and Association Update Webinar Recording (February 3, 2021)
• Know of others? Please email suzanne@lucidtext.com

Proposed Legislation

• S.831 – A bill to reauthorize the EB-5 Regional Center Program in order to prevent fraud and to promote and reform foreign capital investment and job creation in American communities (a.k.a. EB-5 Reform and Integrity Act of 2021) was introduced by Senator Grassley and Senator Leahy on March 18, 2021. The bill text and summary are in Senator Grassley’s press release, and also now published at Congress.gov. See also IIUSA’s section-by-section summary of the bill.
• H.R. 2901 — To reauthorize the EB-5 Regional Center Program was introduced in the House on April 28, 2020 by Rep. Greg Stanton and Rep. Brian Fitzpatrick. It is a companion bill to S.831, with identical content. The bill text and summary are in a nice press release from Rep. Stanton.
• For historical reference, I made a comparison table of EB-5 bills from previous Congresses 2015-2019.) See also my my chart of past authorizations . For examples of parties who have historically advocated for alternatives to Grassley/Leahy legislation, see for example Grassley’s articles from 2016 and 2015 (discussing the role of U.S. Chamber of Commerce and Real Estate Roundtable). The last alternative to a Grassley/Leahy bill was S.2778 introduced in the last congress by Senator Rounds. I discussed that bill in this 2019 post and this 2021 post.

Articles from the Industry and Media

• My 6/24 post Senate setback for RC program authorization reviews what happened during the Senate’s last chance to pass reauthorizing legislation
• “EB-5 Regional Center Program reauthorization: Will it happen this week?” (June 22, 2021) in Homeland Preparedness News
• “Covid-19 worsens troubles in an investor visa program” (June 22, 2021) Wall Street Journal
• “Investor groups haggle over expiring program’s renewal” (June 17, 2021) Bloomberg Law
• “Create new jobs and keep billions in construction capital flowing with a few clicks of support” (May 25, 2021) by the Coalition to Save and Create Jobs in The Real Deal. (Note also that this page collects a variety of supportive articles: www.saveandcreatejobs.org/blog)
• “Why There’s Still Opposition to EB-5 Reauthorization that Addresses Integrity and Reform” (May 19, 2021) by Aaron Grau, IIUSA. This article explains the interests opposing the Grassley/Leahy bill, involving EB-5 Investment Coalition and Senator Schumer.
• “Is Change Coming to the EB-5 Industry?” (May 14, 2021) by EB-5 Investment Coalition. Quotes Laura Reiff and Jeff Campion expressing the hope that EB-5 can return to short-term authorizations until Congress is willing to consider visa relief and reduced investment amounts as part of “holistic reform.”
• “Why Stakeholders Want The EB-5 Visa Program Continued” (April 26, 2021) by Jeffrey Steele, Forbes. This article gives the positive economic-development-based argument for regional center program authorization.
• “Perspective on reauthorization and S.831” (April 9, 2021) by Suzanne Lazicki. In this blog post, I explain why supporting the Grassley/Leahy bill is a practical necessity, despite its faults. See also my post What indirect job creation means in EB-5
• “Uncertainty grips Indian investors as they await EB-5 regional investor programme to be reauthorized” (March 25, 2021) Money Control. Highlights the concerns of past and prospective investors around regional center program reauthorization. “A short term technical lapse in authorization of the programme could increase the expected wait time to immigrate to the US by many months. Increasing wait times come with an additional risk – a well-to-do project invested in, might go bust. In the unlikely case of non-renewal, all investments would be reduced to naught.” See also “Bipartisan Bill to reform EB-5 visa program introduced in US Congress” (March 21, 2021) and The future of the EB-5 program and why Indian investors should worry (May 27, 2021) in the Economic Times.

• Frequently Asked Questions on Regional Center Program Authorization (March 9, 2021) IIUSA
• “How the EB-5 reform bill could change the EB-5 program” (March 17, 2021) EB-5 Investors Magazine. Includes quotes from Laura Reiff of Greenberg Traurig, expressing the position in opposition to the Grassley/Leahy bill.
• “Chicago EB-5 fraud cases put pressure on Senate Judiciary Chairman Durbin” (March 17, 2021) Homeland Preparedness News. Features interviews from a variety of perspectives, and highlights political complications in regional center program authorization
• “IIUSA President: The EB-5 Integrity Reform Bill… A Huge Opportunity for the Industry” (February 16, 2021) IIUSA Blog. Discusses why IIUSA heartily supports the forthcoming Grassley/Leahy bill as “the only path to long-term authorization.” (For previous articles explaining why this in the only option, see “Will the EB5 Investor Immigration Program Survive Beyond June 2021” and  “State of the EB-5 Industry and Its Path Forward”
• “The EB-5 Program Faces a Looming Sunset Deadline” (February 8, 2021) Wealth Management.com (also cross posted by CanAm Capital) Describes the current legislative situation from the regional center perspective, and emphasizes regional center program authorization as the first priority. Includes interviews with NES Financial, CanAm, and EB5 Capital.
• “EB-5 Visa Reform Needed” (January 18, 2021) CMB. Another article from the regional center perspective supporting legislation for reform and reauthorization.
• “Cash for green card: Will the popular EB-5 Regional Center programme survive?” (February 14, 2021) Times of India. An article highlighting EB-5 investor concerns and the need to support regional center program authorization from an investor perspective.
• Know other perspectives that should be featured here? Please email suzanne@lucidtext.com

Articles from Congress/Government

• “Stanton, Fitzpatrick Introduce Bipartisan EB-5 Investor Visa Bill to Attract Foreign Investment and Create Jobs” (April 29, 2021) posted by Rep. Stanton.
• “EB-5 Immigrant Investor Visa” (updated January 26, 2021) by Congressional Research Service. This report reflects how Congressional reps are currently educated on EB-5. It includes little information about the regional center program’s economic benefit, and emphasizes concerns with regard to fraud and national security risks, data collection, and backlogs in application processing.
• “Support grows for inclusion of EB-5 reforms in FY2021 omnibus appropriations bill” (December 11, 2020) Rep. Brian Fitzpatrick. The article includes a list of Congressional reps who wrote in support of the regional center program in 2020.
• Outdated documents and studies from 2015/2016 that continue to shape Congressional thinking today about the EB-5 program status and needs, and particularly influential for Senator Grassley and Senatory Leahy:
  • 4/27/2015 letter from Secretary of Homeland Security Jeh Charles Johnson to Senator Grassley and Senator Leahy
  • U.S. Government Accountability Office reports Immigrant Investor Program: Progress Made to Detect and Prevent Fraud, but Additional Actions Could Further Agency Efforts (9/13/2016) and “Immigrant Investor Program: Additional Actions Needed to Better Assess Fraud Risks and Report Economic Benefits” (August 2015).

Investor Data Links

The population of past regional center EB-5 investors still waiting on green cards is estimated at over 40,000 people ($20+ billion dollars), or over 80,000 people including investors’ family. Continued regional center program authorization is necessary to protect this population.

Estimate of Pre-CPR EB-5 Investors: As of April 2020, USCIS reported 16,633 pending I-526 petitions for EB-5 investors, and 24,005 approved I-526 petitions for EB-5 investors who did not have visa availability yet according to the visa bulletin. A third category of investors is unreported, but likely in the thousands: approved I-526 with visas available but not yet issued. Over 95% of these pending and approved I-526 are likely for regional center investors, judging by past experience. The regional center category accounted for 95% of EB-5 visas issued from 2012 to 2019. References: “I-526 Performance Data FY2020 Q1” and “Count of Approved I-140, I-360 and I-526 Petitions as of April 20, 2018 with a Priority Date On or After May 2018” and “Annual Report of the Visa Office”

Estimate of Total Pre-CPR EB-5 Applicants: Charles Oppenheim, Chief of the Visa Control & Reporting Division at the U.S. Department of State, estimated a grand total of 83,003 prospective EB-5 visa applicants in process as of October 2020. This estimate includes applications on file at the National Visa Center and estimated applicants associated with I-526 petitions pending at USCIS. It does not include EB-5 applicants with pending I-485 status adjustment petitions: a population in the thousands. Over 95% of the estimated total EB-5 applicants are likely associated with regional centers. (The regional center category accounted for 95% of EB-5 visas issued from 2012 to 2019.) See slide 9 of “Part 1: A discussion with Charles Oppenheim” (November 19, 2020) 2020 IIUSA Virtual Forum

Law and Policy Links

• Current regional center program authorization is in Public Law 116-260 Consolidated Appropriations Act, 2021, Division O, Title I Immigration Extensions (PDF page 967) in this sentence: “Section 610(b) of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1993 (8 U.S.C. 1153 note) shall be applied by substituting ‘June 30, 2021’ for ‘September 30, 2015.’” This refers back to Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1993 (Public Law 102-395) Section 610(b) (PDF page 47), which originally established the regional center program.
• To review the regional center statute from P.L. 102-395 together with amendments up to 2012, see this link from USCIS EB-5 training materials. Note that the statute defines the conditions under which visas are set aside for investments associated with regional centers. The statute permits aliens admitted under the regional center program to rely on regional center job creation, including economic methodologies and jobs created indirectly. The statute does not offer any path for people reliant on indirect job creation and economic methodologies (as all regional center investors are) to be admitted to the U.S. absent regional center program authorization.
• To review the history of regional center program authorizations, see my chart of past authorizations
• To review USCIS policy with respect to regional center sponsorship, see the USCIS Policy Manual Vol. 6 Part G. Chapter 1(B)2 defines the difference between regional center and direct EB-5. Chapter 2(D) discusses regional center job creation. Chapter 4(C) explains why change in regional center sponsorship is a “material change” that will cause I-526 to be denied or revoked for regional center investors who have not yet received conditional permanent residence status. Chapter 5(C) specifies that an investor who has received conditional permanent residence status has opportunity to continue the immigration process, even in case of regional center termination.
• For an example of Department of State Policy for regional center visa applications in case of a temporary shutdown, see the note in Section E of the December 2020 Visa Bulletin. “Pursuant to the continuing resolution, the immigrant investor pilot program is extended until December 11, 2020. The I5 and R5 visas may be issued until close of business on December 11, 2020, and may be issued for the full validity period. No I5 or R5 visas may be issued overseas, or final action taken on adjustment of status cases after December 11, 2020. If there is legislative action extending these categories, the December dates would be applied for the entire month. If there is no legislative action extending this category, the category will become “Unavailable” effective midnight, December 11, 2020.”
• For an example of past USCIS guidance for EB-5 form adjudications in the case of a temporary lapse in regional center program authorization (which occurred December 21, 2018 to January 26, 2019 in connection with a government shutdown), see USCIS Guidance Impact Lapse EB-5 Program.