A Trump administration rule that nearly doubled the required investment for EB-5 visas is struck down. A California court stated the law was enacted in violation of the Federal Vacancies Reform Act.
The court stated then acting Secretary of Homeland Security Mr. Keven McAleenan was wrongly installed. As such, the July 2019 final rule that increased the investment requirements for EB-5 visas was illegal.
The Biden administration defended the policy. They claim any alleged issues with the original rulemaking process were overcome when the Senate-confirmed Homeland Security Secretary Mr. Mayorkas ratified the rule. However, the statute states previous actions determined illegal are not eligible for ratification.
The EB-5 visa gives noncitizens the opportunity to gain a visa when they invest a specific amount of money in a U.S. business that also creates a minimum of 10 jobs. The standard investment was at $1 million, however, the amount moved to $1.8 million in 2019, under Mr. McAleenan. In addition, areas with high unemployment or rural areas required investment minimums moved from $500,000 to $900,000. The 2019 ruling also kept certain localities from qualifying as targeted areas, even if unemployment is high. Investment requirements have reverted to the previous lower amounts.
If you have questions about the EB-5 program or any immigration-related issue, contact us at ILBSG. We monitor the evolving government and legal landscape to ensure our clients get the right advice.
