Is Change Coming to the EB-5 Industry?

Jun. 6, 2021 / PRZen / WESTON, Fla. — U.S. Magistrate Judge Jaqueline Scott Corley seemed to indicate in yesterday’s hearing in the Behring Regional Center LLC v. Wolf et al. that the Department of Homeland Security’s regulation changing TEA and investment amounts in the EB-5 program were not properly promulgated by Kevin McAleenan. The Federal Vacancies Reform Act simply did not permit that action to be taken and that any subsequent attempt ratify that invalid action by the current Administration would not be valid. EB-5IC is very pleased with the initial response from Judge Corley. Laura Reiff opined, “This could lead to holistic EB-5 reform.” She continued, “The EB- 5 Regional Center Program is basically dead. We need to have meaningful reform that protects stakeholders and doesn’t inadvertently hurt those it was intended to protect. This is why the suit was brought.”

The EB-5 Regional Center program (the “RC Program”) is set to expire on June 30, 2021. While there is cause for concern, there is a growing consensus that if meaningful reform cannot be achieved in a short period of time, the RC Program should be re-coupled with three other immigration programs that it was coterminous with prior to 2021. This would allow time to achieve the holistic reform that Laura Reiff referred to. Jeff Campion mentioned, “We believe integrity measures can be implemented that will improve the program. We also believe that visa backlog issues need to be addressed and can be.” He added, “In the time of a pandemic, we have a solution to help spur on job creation at no cost to US taxpayers– it’s EB-5. To do that we need visa relief.”

Judge Corley should be issuing a written opinion in the next two weeks which will be pivotal in the EB-5 industry. If summary judgment is granted to the plaintiff, the old minimum investment amount of $500,000 for TEAs would be in effect. “This could what we need to breathe life into the industry and craft meaningful legislation to have a robust EB-5 industry,” stated Laura Reiff.

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