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With promises of drastic changes to the immigration landscape of the United States during the most recent presidential campaigns, demand for the EB-5 program increased in 2024. Along with heightened demand, other noteworthy developments occurred in the U.S. EB-5 Golden Visa space, including fee hikes, faster processing, and an investor-friendly legal precedent on the source of funds requirement for the EB-5 program.

In addition to the significant developments in 2024, the EB-5 program, designed to stimulate the U.S. economy through foreign investment, anticipates notable trends in 2025.

EB-5 Program

The EB-5 program serves as the U.S. equivalent of a Golden Visa, offering foreign investors a reliable and secure pathway to U.S. residency. By making an $800,000 investment in a government-approved real estate project—such as a hotel development or residential complex—investors can obtain U.S. Green Cards for themselves and their immediate family members, including their spouse and children under 21.

2024 Recap

1. Accelerated Processing of Pre-RIA Filings: The U.S. Citizenship and Immigration Services (USCIS) made strides in expediting the processing of EB-5 petitions filed before the enactment of the EB-5 Reform and Integrity Act (RIA) of 2022. This effort aimed to reduce backlogs and enhance efficiency for longstanding applicants.

2. Surge in Investment and Visa Issuance:

– Increased Applications: The EB-5 program witnessed a substantial rise in investment activity. In the first quarter of 2024, 1,879 new EB-5 applicants initiated their process, marking the highest quarterly applications since the enactment of the RIA. This figure is more than triple the number from the same period in fiscal year 2023.

– Visa Issuance Growth: Between October 1, 2023, and January 31, 2024, consular processing resulted in the issuance of over 3,140 EB-5 visas, reflecting a 97% increase compared to the same period in the previous year. This upward trend continued throughout 2024, with visa usage reaching unprecedented levels in the program’s history.

3. Government Processing Fee Increases: In April 2024, USCIS implemented a revised fee schedule, affecting several forms used in the EB-5 process. Notably, the Form I-526E filing fee was updated to include a $1,000 Integrity Fund Fee, bringing the total filing fees to $12,160. These adjustments aimed to support program integrity and operational costs.

4. Legal Precedent on Source of Funds Requirements: The case of Battineni v. Mayorkas addressed the stringent requirements imposed by USCIS regarding the tracing of investment funds. The Federal Court hearing the case concluded that while regulations require petitioners to demonstrate that their funds were obtained from a lawful source, they do not necessitate tracing every penny beyond the initial acquisition. This nuanced perspective may influence future adjudications and appeals. Read our blog here to learn more about the outcome of the case and its implications for prospective EB-5 investors.

2025 Outlook

1. Anticipated Retrogression for India and China: In the January 2025 Visa Bulletin, the U.S. Department of State indicated the possibility of establishing cut-off dates for EB-5 visa applicants from India and China in the reserved categories. This development suggests that demand may exceed visa availability, potentially leading to longer wait times for applicants from these countries.

2. Policy Shifts Under the New Administration: With the return of the Trump administration in January 2025, a renewed focus on American excellence and economic growth is expected. While there may be efforts to curtail illegal immigration, the administration’s pro-business stance could result in favorable treatment of programs like EB-5, potentially increasing demand from foreign investors seeking legal pathways to U.S. residency.

3. Continued Emphasis on Program Integrity: Following the EB-5 Reform and Integrity Act of 2022, USCIS has reinforced compliance standards for regional centers and other program participants. Enhanced oversight measures, including audits and site visits, are anticipated to continue in 2025 to ensure adherence to regulations and protect investor interests.

4. Potential for Increased Investment Thresholds: Discussions within the industry suggest the possibility of future adjustments to the minimum investment amounts required for EB-5 participation. Stakeholders should stay informed about any legislative changes that may impact investment strategies and eligibility criteria. Applicants that file now under the current rules will benefit from a lower investment threshold. Even if applicants file now with an initial $200,000 investment under a payment plan, they will not be affected by future changes to the program.

As the EB-5 program evolves, prospective investors and stakeholders should remain vigilant regarding policy developments and market trends to navigate the complexities of the program effectively.

Contact The American Legal Center for assistance on your migration journey

With over a decade of experience in the EB-5 industry and having filed the most EB-5 applications out of the GCC region, we are well equipped to assist you and your family with your U.S. Golden Visa application. Contact our team today to set up an initial complimentary consultation.