The Department of Homeland Security (DHS) has scheduled the publication of the EB-5 program’s final regulations in the Federal Register tomorrow. In the making since the Obama administration, the new set of rules would raise the minimum investment amounts from $500,000 (regional center projects) and $1 million to S900,000 and $1.8 million, respectively.
But because the rules are not slated to take effect until 120 after publication (Nov. 21st), congressional re-authorization of the regional center program on or before September 30th – the date on which the current extension expires – could render the new rules obsolete before they see the light of day.
“[…]given the 120-day window before the regulations are effective, our program may be reauthorized with new and positive reforms making the new regulations moot vis-à-vis a (new) reauthorization statute,” said Invest in the USA (IIUSA) – the EB-5 industry’s principal advocacy group – in a statement to its members.
Want to know more about the US EB-5 program? To see recent articles, statistics, official links, and more, visit the US EB-5 Program Page.
Many EB-5 service providers have opposed the new rules, first formulated in January 2017.
“Legislators on both sides of the aisle have specifically called for integrity measures to ensure against fraud. The new regulations do not do what Congress continues to seek to do legislatively, because the agency does not have the requisite authority,” wrote US immigration practice Greenberg Traurig on its blog.
Hundreds of firms can assist with applications to the US EB-5 program. To see which ones, visit the Residence and Citizenship by Investment Company Directory.
“Congress and stakeholders are working on a reauthorization with much needed policy and legislative changes. If such an extension occurs, the rule published today may never take effect. Only Congress can enact all of the reforms necessary to modernize EB-5,” added the firm.
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