UTF Law Firm | Urban Thier Federer, P.A.
Call in the USA: 888-799-7037

Outside of the USA: 001 212-257-0898

Trump’s Immigration Policy: Impact on EB-5 Investment Visas

On Behalf of | Feb 3, 2025 | Immigration |

As President Trump begins his second term, significant changes to U.S. immigration policy are expected, including potential reforms to investment visa programs. This article examines the possible impact of Trump’s presidency on investment visas or the EB-5 Immigrant Investor Program.

This article focused on the EB-5 Immigrant Investor Program, is part of a series that examines the potential impact of Trump’s presidency on US immigration policy.

The EB-5 Immigrant Investor Program

The EB-5 program offers permanent residency to foreign investors who make a substantial investment in a U.S. business that creates or preserves at least 10 full-time jobs for American workers. Previously, the minimum investment was $1 million, or $500,000 in targeted employment areas.

Changes To EB-5 Program During Trump’s First Presidency

On July 24, 2019, the Trump administration announced significant changes to the EB-5 Immigrant Investor Program, which took effect on November 21, 2019. These changes included:

  1. Increasing the standard investment threshold from $1 million to $1.8 million
  2. Raising the minimum Targeted Employment Area (TEA) investment from $500,000 to $900,000
  3. Granting USCIS authority to designate high unemployment TEAs, eliminating state involvement
  4. Restricting TEA designation to the immediate area around an EB-5 project

Legal Challenges and Biden Administration Response

In June 2021, a federal court vacated the Trump-era rule, citing improper appointment of DHS officials. This decision temporarily reversed the investment thresholds to their pre-2019 levels.

EB-5 Reform and Integrity Act of 2022

On March 15, 2022, President Biden signed the EB-5 Reform and Integrity Act as part of the Consolidated Appropriations Act. This new legislation:

  1. Set the standard minimum investment to $1,050,000
  2. Established the minimum TEA investment at $800,000
  3. Introduced automatic increases to these amounts every five years based on inflation, starting January 1, 2027

These new thresholds effectively replaced the higher amounts set by the Trump administration while still maintaining increased investment requirements compared to pre-2019 levels.

Trump Administration’s Stance

Although there are no direct quotes from Trump regarding the investment visas, during his first term, his administration introduced reforms to the EB-5 program, aiming to increase investment thresholds and tighten regulations7. His administration further raised the minimum investment amounts to $1.8 million, or $900,000 in targeted employment areas.

Potential Changes in Trump’s Second Term

Increased Scrutiny and Vetting

The Trump administration is likely to implement stricter vetting processes for immigrant and nonimmigrant visas, including investment visas. This could lead to longer processing times and more rigorous background checks for EB-5 applicants.

Emphasis on “Merit-Based” Immigration

Trump has consistently advocated for a shift towards a merit-based immigration system. This could potentially benefit EB-5 investors, as the program aligns with the concept of attracting high-net-worth individuals who can contribute significantly to the U.S. economy.

Possible Program Reforms

  1. Investment Thresholds: Further increases in minimum investment amounts may be considered to ensure that only high-net-worth individuals qualify.
  2. Job Creation Requirements: The administration might tighten job creation criteria or increase the number of required jobs per investment.
  3. Targeted Employment Areas: Stricter definitions of what constitutes a targeted employment area could be implemented, potentially limiting opportunities for reduced investment amounts.
  4. Compliance and Oversight: Enhanced measures to prevent fraud and abuse within the EB-5 program are likely to be introduced.

Impact on Potential Investors

For those considering the EB-5 program, these potential changes could have significant implications:

  • Higher Costs: Increased investment thresholds may make the program less accessible to some investors.
  • Longer Processing Times: Enhanced vetting procedures could extend the already lengthy application process.
  • Increased Complexity: More stringent regulations may necessitate expert guidance to navigate the application process successfully.

The EB-5 investment Visa Future

While the EB-5 program is likely to continue under the Trump administration, potential investors should anticipate changes that could make the process more challenging and costly. It’s crucial for individuals interested in investment visas to stay informed about policy developments and seek expert legal guidance. The EB-5 program’s focus on economic contribution and job creation makes it less likely to face criticism from the Trump administration compared to other immigration avenues. Its merit-based nature, emphasizing economic contributions could align with Trump’s vision for immigration reform. As such, the EB-5 visa remains an attractive option for high-net-worth individuals looking to secure permanent residency in the U.S..

The experienced attorneys at Urban Thier & Federer, P.A. are well-equipped to navigate the evolving landscape of investment visa programs. We can provide up-to-date advice on the EB-5 program and other investment visa options, ensuring our clients are well-positioned to achieve their immigration goals despite potential policy changes.

Contact us today for expert assistance in pursuing your investment visa opportunities in the United States.

Categories