Washington Updates

Washington Updates Page Contents:

Calendar Summary

  • September 30, 2019: Next regional center program sunset date
  • November 21, 2019: The EB-5 Immigrant Investor Program Modernization Regulation will take effect.

Summary of Recent Updates

  • 8/12/2019: Vanity Fair gossips about Related Companies and EB-5 lobbying. What a pity that this has become the face of the regional center program.
  • 8/5/2019: IIUSA has published a post on the Mid-Year State of IIUSA Your Industry Trade Association. It expresses optimism about the future of EB-5, urges “do not believe the naysayers, the worriers, and especially the profiteers,” and foresees that “There are many reasons to believe that our cooperative efforts will produce a reform and reauthorization well before the (ill-timed) regulations ever come into effect.”
  • 8/4/2019: We may be looking at another drama-filled Fall, with Congress struggling to pass the appropriations bills that incidentally carry Regional Center program authorization. That could mean another series of continuing resolutions that result in a series of short-term RC program reauthorizations between September and December. Budget Deal Sparks Scramble to Prevent Shutdown The Hill.
  • 7/24/2019: The EB-5 Immigrant Investor Program Modernization Regulation (RIN 1615-AC07) has been published today in the Federal Register as a Final Rule. The final rule will be effective in 120 days, on November 21, 2019. I discuss the detail in this post.

Legislation Status

Congress has periodically proposed reforms to the EB-5 program, or immigration legislation that could affect EB-5.

Current legislative proposals that could affect EB-5:

  • In May 2019, IIUSA and others published a letter to the Senate and House Judiciary Committees laying out “consensus reform concepts” recommended for new EB-5 legislation. The concepts aim to reauthorize the regional center program, reduce the minimum investment thresholds for prosperous urban areas, and reopen backlogged markets by making more visas available under a set-aside proposal. Unless Congress agrees to increase visa numbers, the visa set-aside for incoming investors would have to be accomplished by reducing visas available to past investors. I discuss the detail in this post. My post also discusses the White House immigration plan broadly outlined by President Trump in May 2019. The plan mirrors the President’s 2016 campaign proposal to demote family-based immigration while replacing EB visas with a merit-based points system that prioritizes youth, education, skills, and economic position and potential.
  • H.R. 1044 ‘Fairness for High-Skilled Immigrants Act of 2019 and S.386 – A bill to amend the Immigration and Nationality Act proposed to eliminate the per-country cap for EB visas. HR1044 passed the house but S.386 is currently stalled in the Senate. I discuss the proposal in this post.
  • My log of past EB-5 legislative proposals (of which none are currently active)

Regional Center Program Authorization Status


The last time Congress voted a significant regional center program extension was 2012. Since then, the program has been extended a few months at a time, in connection with government funding. All of these have been “clean” reauthorizations – with no changes besides changing the regional center program sunset date. However, major EB-5 legislation could possibly get included in a future spending bill.

The regional center program was most recently authorized to September 30, 2019 as part of H.J.Res 31, signed on February 15, 2019. The authorization language is in  Division H, Title 1, Sec. 104 (PDF page 463) as follows: “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 ‘September 30, 2019’ for ‘September 30, 2015.'”  This language refers back to Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1993 (Public Law 102-395) Section 610 (PDF page 47), which established the regional center program.

EB-5 Regulations Status

The EB-5 Modernization Regulation (RIN 1615-AC07) was published as final rule on July 24, 2019, and will take effect on November 21, 2019.

Two additional rules are an earlier stage in the Rulemaking Process.

  • RIN 1615-AC11 Regional Center Program Regulation, with proposed changes to regional center designation requirements and process.
  • RIN 1615-AC26 EB-5 Immigrant Investor Program Realignment, which “will solicit public input on proposals that would increase monitoring and oversight, encourage investment in rural areas, redefine components of the job creation requirement, and define conditions for regional center designations and operations”


  1. How can the EB-5 program be changed?

The EB-5 program can be changed through legislation, regulations, and policy. EB-5 was established by law as a permanent program in 1990, and the regional center branch of EB-5 has operated on a series of temporary authorizations since 1992. We depend on legislation to – at minimum — regularly reauthorize the regional center program.  Legislation, regulations, and policy offer paths to program changes and reforms.

Legislation: Legislation originates with Congressional representatives and must be approved by the House, the Senate, and the President

  • Legislation can change any aspect of the EB-5 program
  • Legislation established EB-5 as a permanent program, and is the only way to terminate it
  • Legislation is the only means to reauthorize the regional center program, and eventually make it permanent
  • Legislation is the primary/only path to increase or decrease available visa numbers (the alternative is to convince agencies to change their interpretation of past legislation)
  • Legislation is the path to make EB-5 program changes that would involve giving DHS significantly more power, discretion, and/or money for administering EB-5 than it had before
  • Legislative changes can, in theory, apply retroactively (though this is unpopular)

Regulations: EB-5 regulations originate with DHS, initiate a public notice and comment period upon publication in the Federal Register, get reviewed and approved (or not) for final action by the administration through the Office of Management and Budget, and finally become effective.

  • Regulations are written to help implement and fill the gaps in legislation
  • DHS recently finalized one new EB-5 rule, and has initiated the process for two additional rules.
  • The regional center program authorization cannot be extended by regulation (needs legislation)
  • EB-5 visa numbers cannot be increased by regulation (needs legislation)
  • Regulations are somewhat limited when it comes to integrity measures, since there’s a limit to how far an agency can propose to extend its power or increase its budget without approval from Congress
  • Regulations are not retroactive

Policy: EB-5 policy originates in the Investor Program Office at USCIS, and is published in Volume 6 Part G of the USCIS Policy Manual. The policy process should involve public notice and opportunity for comment. However, USCIS has recently given notice and invited feedback only after having already published the new policy and made it effective.

  • Policy translates the statute, regulations, and case law into policies to be followed by USCIS officers in the performance of their duties.
  • Policy is not supposed to set new legal standards or impose new requirements, but simply to interpret and apply existing regulations and statute.


  1. What happens if the regional center program is terminated?

If Congress moves to terminate the RC program, one hopes that the move will come with new language that protects good-faith regional center applicants already in the system. (I estimate about 95,000 people, regional center investors and family, are currently in the pipeline between I-526 filing and I-829 filing.) Current policy treats regional center termination as a material change that would abort the process for people waiting on a green card, but does not address what would happen were the entire program terminated.

Policy Manual 6 USCIS-PM G Chapter 4(C): Changes that are considered material that occur after the filing of an immigrant investor petition will result in the investor’s ineligibility if the investor has not obtained conditional permanent resident status. …Further, the termination of a regional center associated with a regional center immigrant investor’s Form I-526 petition constitutes a material change to the petition.

Policy Manual 6 USCIS-PM G Chapter 5(C): Further, with respect to the impact of regional center termination, an immigrant investor’s conditional permanent resident status, if already obtained, is not automatically terminated if he or she has invested in a new commercial enterprise associated with a regional center that USCIS terminates. The conditional permanent resident investor will continue to have the opportunity to demonstrate compliance with EB-5 program requirements, including through reliance on indirect job creation.

Direct EB-5 is not subject to reauthorization, and could continue as-is regardless of whether or not the regional center program is reauthorized

  1. What happens if regional center program authorization lapses as part of a government shutdown?

As a fee-funded agency, USCIS has some discretion regarding how to react to a shutdown. For reference, these articles discuss what happened to EB-5 during the December 2018 shutdown: see Client Alert, Government Shutdown Update (December 28, 2018) by Robert Blanco,  Visa Processing During the Government Shutdown (December 26, 2018), and Effects of a Potential Government Shutdown on Immigration Processing and Programs (December 12, 2018) by William Stock. During that shutdown, the EB-5 page on the USCIS website posted the following message.

The EB-5 Immigrant Investor Regional Center Program expired at the end of the day on Dec. 21, 2018, due to a lapse in congressional authorization to continue the program. All regional center applications and individual petitions are affected. USCIS will not accept new Forms I-924, Application for Regional Center Designation Under the Immigrant Investor Program, as of Dec. 21, 2018. Any pending Forms I-924 as of Dec. 21, 2018, will be put on hold until further notice.

Regional centers should continue to submit Form I-924A, Annual Certification of Regional Center, for fiscal year 2018.

We will continue to receive regional center-affiliated Forms I-526, Immigrant Petition by Alien Entrepreneur, and Forms I-485, Application to Register Permanent Residence or Adjust Status, after the close of business on Dec. 22, 2018. As of Dec. 22, 2018, we will put unadjudicated regional center-affiliated Forms I-526 and I-485 (whether filed before or after the expiration date) on hold for an undetermined length of time.

All Forms I-829, Petition by Entrepreneur to Remove Conditions on Permanent Resident Status, filed before or after the expiration date, will not be affected by the expiration of the program.

USCIS will provide further guidance to the public if legislation is enacted to reauthorize, extend, or amend the regional center program.

  1. Would any EB-5 program changes retroactively affect people who have filed I-526?
  • If the regional center program loses authorization, that would affect people who have already filed and depend on the regional center program for continued eligibility. (See question 1 above)
  • Any legislation that affects visa allocation would affect people who have filed I-526 and not yet received conditional permanent residence. (Such changes might include visa number changes, visa set-asides, and changes to the per-country cap.)
  • Changes to investment amounts and TEA rules proposed by the regulations only apply to new petitions after a future effective date.
  • The priority date protection and I-829 process changes in the regulations will apply to people at certain stages regardless of whether they filed I-526 before the effective date of the regulations.
  1. Would proposed EB-5 changes affect direct EB-5?

Changes to investment amounts and TEA definitions equally affect direct EB-5 and regional center EB-5. The main difference is that direct EB-5 does not depend on re-authorization, and integrity measures in proposed legislation have largely ignored direct EB-5.