Back to Top skip to main content
GandS U.S. Immigration Logo
Sep 5, 2019

Senator Rand Paul Seeks Congressional Action to Halt EB-5 Program Changes

David Spaulding

As we previously discussed, United States Citizenship and Immigration Services (USCIS) proposed substantial changes to the EB-5 regulations on July 24, 2019.   The “EB-5 Immigrant Investor Program Modernization Rule” is scheduled for implementation on November 21, 2019.  It appears that the Administration will apply the rule, as written, unless Congress acts to stop it.

On August 20, 2019, U.S. Senator Rand Paul, a long-time supporter of the EB-5 program, sought to block implementation of the changes through a Congressional Review Act resolution.  In a Letter to Colleagues, he wrote:

“By significantly raising the minimum investment levels required for foreign investors to become eligible petitioners under the EB-5 program, this rule may undermine the very purpose of the program, which is to create jobs and grow the economy.  Moreover, the rule would severely restrict the role of the states in determining targeted employment areas… Taken together, these regulatory changes will disrupt regional center operations and are likely to reduce the level of foreign direct investment in the U.S. economy.”

As written, the new rules – specifically those nearly doubling minimum investment amounts – will likely reduce the number of EB-5 filings and adversely impact the overall effectiveness of a program that has successfully channeled foreign investment into the US economy.  Senator Paul’s efforts to delay implementation may open a window for a broader legislative effort to address EB-5 program challenges like the country cap and adjudication delays. We have previously detailed our opposition to the EB-5 Modernization Rule, although our concerns were largely ignored. We accordingly advise clients to interested in EB-5 to move forward as quickly as possible given significantly worse terms starting November 21.

We will continue to monitor this issue closely.  Contact us today to discuss EB-5 investor questions.

Related Team

D Spaulding Team Page

David Spaulding

(215) 395-8959

(215) 395-8959

email David

Philadelphia (US Headquarters)

Full Biography

David Spaulding

Recent Blogs

Mar 05, 2021

The U.S. Secretary of State Has Implemented Significant New Travel Restrictions That Affect Primarily Business Travelers

Takeaways: On March 2, 2021, the U.S. Department of State (DOS) implemented more restrictive policies, generally barring business travelers who have been in Ireland, the Schengen Area, and the U.K. Obtaining National Interest Exceptions (“NIE”) to those travel restrictions is likely to be far more difficult and time-consuming. Quarantining in a third country continues to be a good alternative to applying for an NIE.

Mar 01, 2021

USCIS Extends Flexibilities to F-1 Students Filing for OPT

On February 26, 2021 USCIS announced flexibilities for certain F-1 students in the filing of Form I-765, Application for Employment Authorization (EAD) for Optional Practical Training (OPT). This is due to the substantial delays in issuing receipt notices at certain USCIS lockboxes where these applications are filed. These flexibilities only apply to I-765 forms received by USCIS on or after October 1, 2020 through May 1, 2021. Learn more in this blog.

Feb 25, 2021

Biden Administration Lifts Suspension of Immigrant Visa Issuance

On February 24, 2021, the Biden Administration issued a Presidential Proclamation that reversed President Trump’s EO that, for more than 10 months, has prevented many foreign nationals physically outside the United States from obtaining an Immigrant Visa which, upon issuance and admission to the United States, would automatically convert the individual to a U.S. Lawful Permanent Resident (“LPR”). Passed under the guise of protecting the U.S. workforce since LPRs are permitted to accept any and all forms of employment, in effect, the ban served to keep close family members of U.S. Citizens and Permanent Residents, diversity visa lottery winners, key employees, and others from obtaining the Immigrant Visa that would permit them to assume LPR status. Learn more in this blog.