EB-5 Temporarily Extended
Short-term, Congress recently passed a continuing resolution extending the EB-5 Regional Center Program through April 28, 2017. Insiders in the EB-5 industry are still working overtime in an effort to update existing legislation so that it will be acceptable within the industry as well as by both Congress and the Senate, but no consensus could be reached before the most recent December 9 renewal expiration date. Behind-the-scenes efforts continue between EB-5 industry leaders and the House Judiciary Committee chair and ranking members of the Judiciary Committee to reform the program, with the goal of finalizing said reforms before the April deadline.
New EB-5 Policy Manual
At the time of the extension, the U.S. Citizenship and Immigration Services (USCIS) published a new policy manual. USCIS Policy Manual Volume 6, Part G in draft (Manual) supersedes any previously issued USCIS guidance, including guidance issued in the USCIS Adjudicator’s Field Manual (AFM) the AFM appendices, and USCIS policy memoranda issued prior to November 30, 2016. Most of its content is procedural; directed to regional centers, the job-creating entities and immigration counsel, it does not seem to significantly affect investors [1].
President-Elect Trump
There still is no clear answer as to President-elect Donald Trump’s specific policy regarding immigration, whether legal or illegal. In fact, several indications remain somewhat contradictory yet the inauguration is just weeks away. Some things seem clear, as outlined below.
A Tough Road Ahead for the H-1B Program?
For instance, in March, 2016, Trump released a statement noting that he would end the H-1B program, “as a cheap labor program, and institute an absolute requirement to hire American workers first for every visa and immigration program.”
His recent pick of Senator (R) Jeff Sessions as his Attorney General certainly seems to reflect this negative view of the H-1B visa. As Senator, Sessions was outspoken and negative regarding both illegal and legal immigration (H-1B visas in particular), and advocates of immigration restrictions have generally lauded the Sessions pick.
From a recent Fox News article regarding Senator Sessions (see below for link to full article):
In 2015, Sessions sent around an “immigration handbook” to Republican members of Congress that calls immigration reform “a legislative honorific almost exclusively reserved for proposals which benefit everyone but actual American citizens.”
In that handbook and since, Sessions has railed against what he sees as the abuse of the program. In his handbook, he cites statistics suggesting that guest workers make up two-thirds of all new IT hires, while half of Americans with STEM [Science, Technology, Engineering, and Mathematic] degrees can’t find work. He says that while the cap is 85,000, the real number is much higher.
An “Ally” for the EB-5 Program?
However, according to a recent Forbes article (see link below), Trump’s son-in-law, Jared Kushner, has taken advantage of the EB-5 program, receiving an estimated $50 million in EB-5 investment capital for his Jersey City, New Jersey rental building. The majority of those EB-5 funds came from Chinese investors (as do funds for most EB-5 projects to date).
The Forbes article also referenced the fact that Donald Trump’s significant background in real estate development (an industry which has, in general, benefitted greatly from investment through the EB-5 program) and that he is “tax averse,” which could indicate greater support for the sometimes controversial program. This is because the EB-5 program is undeniably a boon to economic development, utilizing foreign investment dollars as opposed to U.S. taxpayer money to accomplish developmental goals. Additionally, the program’s focus is on creating U.S. jobs, something which Trump has consistently advocated from the very beginning of his candidacy. The general feeling in the business immigration community is that Trump will, in fact, support and continue the EB-5 program.
Finally, we recommend that anyone considering seeking EB-5 funding or applying for an EB-5 visa should contact us immediately to discuss options AND to avoid paying the higher filing fees which go into effect on December 23, 2016 (1.866.724.0085 or Info@eCouncilInc.com).
e-Council Inc.’s website, newsletter and other forms of communication contain general information about legal matters. The information is not legal advice and should not be treated as such. You must not rely on the information on this website as an alternative to legal advice from an attorney or other professional legal services provider. For specific questions about any legal matter please consult with an attorney or other professional services provider.