EB 5 Article

New Legistiation Introduced to End EB-5

Two United States senators have introduced legislation to end a controversial visa program popular with Chinese investors that gives out green cards in exchange for investments in American businesses that create jobs.

Sens. Dianne Feinstein (D-CA) and Chuck Grassley (R-IA) made their pitch to Congress to terminate the EB-5 program, which allows foreign investors to pump between $500,000 and $1 million into projects that spur at least 10 jobs.

Roughly 10,000 EB-5 visas are awarded each year, with more than 85 percent going to Chinese investors in 2014. The program, begun in 1990 to make foreigners invest and create jobs and stimulate the economy of the United States.

Investors often put their funds into government-authorized EB-5 regional centers, which act as businesses that pool foreign investment money for development projects. This method accounts for roughly 95 percent of EB-5 investments.

Their bill calls for redistributing the annual 10,000 EB-5 visas among other immigrant visa programs, the statement said.

Grassley, who has previously introduced legislation with Sen. Patrick Leahy (D-VT) to overhaul the program, said it’s time to wind it down.

The bill comes as President Donald Trump and Congress have begun taking up looming immigration questions facing the country.

Congress had extended the EB-5 program after it was set to expire, but never passed any bills to overhaul it. On the other hand, the program has helped finance major projects like the Hudson Yards in New York and the Hunters Point Shipyard in San Francisco.

Since 2008, $16.9 billion in direct foreign investment has gone into the U.S. economy through the EB-5 program, according to Invest In The USA, a non-profit industry trade association. EB-5 proponents say the program creates thousands of American jobs at no taxpayer expense.

Last month, the Department of Homeland Security proposed a rule change to increase the EB-5 minimum investment in high unemployment or rural areas to $1.35 million. For low-to- average unemployment zones, the recommendation was $1.8 million.

The EB-5 program is set to expire again on December, 2017.