Klein notes in December 2016, Congress authorized the EB-5 Regional Center Program for a short-period of time. No substantive changes were made to the program. All existing aspects, including investment amounts, remained the same.

“However, before the final reauthorization occurred, multiple proposals to reform the EB-5 program were debated in Congress,” Klein says. “Some legislation would have changed the Targeted Employment Area (TEA), including definitions of urban and rural areas and minimum investment requirements. Other proposals which sought to improve overall transparency in the program, strengthen investor protections, and decrease visa backlogs.”

On the heels of these Congressional efforts, and in the waning days of the Obama Administration, the Department of Homeland Security proposed a new rule aimed at updating the EB-5 program. Among other changes, Klein notes, the proposal would raise the required investment amounts and designate certain geographical areas where immigrants are allowed to contribute less money.

“Currently, the EB-5 program provides green cards to foreign residents who invest at least $1 million in the US, or $500,000 if the investment is in a TEA,” Klein says. “DHS proposed increasing the minimum investment amount from $1 million to $1.8 million, and from $500,000 to $1.35 million for those who invest in a TEA. It is unclear what position the Trump Administration will take on both the EB-5 program and DHS' proposed rules. However, because President Trump issued a freeze and review of all proposed rules under the Obama Administration, we do not expect that the proposed EB-5 rules will be retained or pursued in their current form.

However, Klein says, it is likely that reform efforts will be deliberated sooner in Congress, and there will be pressure on legislators to work with industry leaders and the Administration before the program expires in April. Indeed, these efforts have already begun.

“On January 23rd, Senator Dianne Feinstein filed a bill on that would end the program and reallocate the employment-based visas allotted to it among the four remaining employment-based visa classes,” Klein says. “While we do not expect this legislation to move, it will provide an impetus for Congressional leaders to pursue legislative efforts to save and reform the program.”

Holland & Knight

MIAMI—The EB-5 immigration program has funded several notable South Florida developments in the past few years. But right now, some industry watchers say it's unclear what position the Trump administration will take on the program, which is set to expire in April.

Ron Klein, a former state representative from Fort Lauderdale who has been working on this issue in Washington, DC, is among them. He lobbies on behalf of the US Immigration Fund, which has at least three EB-5 projects in South Florida.

The Holland & Knight partner's bottom line: He expects the Trump administration will not retain the proposed issuance of new EB-5 rules. If that happens, there is a 90-day comment period and a time between now and April 30 for Congress to consider and adopt new legislation, which would most likely overrule the proposed rules. If Congress does not act before April 30, he says, EB-5 supporters will request an extension of the existing program.

“The November elections ushered in a new president and a new era of policy deliberation over issues of importance to both the American and the global economy,” Klein tells GlobeSt.com. “While larger political debates will take up the 'front pages,' the reauthorization and fate of programs like EB-5 will rest on the ongoing work of key-stakeholders and bipartisan coalitions of members of Congress.”

Klein notes in December 2016, Congress authorized the EB-5 Regional Center Program for a short-period of time. No substantive changes were made to the program. All existing aspects, including investment amounts, remained the same.

“However, before the final reauthorization occurred, multiple proposals to reform the EB-5 program were debated in Congress,” Klein says. “Some legislation would have changed the Targeted Employment Area (TEA), including definitions of urban and rural areas and minimum investment requirements. Other proposals which sought to improve overall transparency in the program, strengthen investor protections, and decrease visa backlogs.”

On the heels of these Congressional efforts, and in the waning days of the Obama Administration, the Department of Homeland Security proposed a new rule aimed at updating the EB-5 program. Among other changes, Klein notes, the proposal would raise the required investment amounts and designate certain geographical areas where immigrants are allowed to contribute less money.

“Currently, the EB-5 program provides green cards to foreign residents who invest at least $1 million in the US, or $500,000 if the investment is in a TEA,” Klein says. “DHS proposed increasing the minimum investment amount from $1 million to $1.8 million, and from $500,000 to $1.35 million for those who invest in a TEA. It is unclear what position the Trump Administration will take on both the EB-5 program and DHS' proposed rules. However, because President Trump issued a freeze and review of all proposed rules under the Obama Administration, we do not expect that the proposed EB-5 rules will be retained or pursued in their current form.

However, Klein says, it is likely that reform efforts will be deliberated sooner in Congress, and there will be pressure on legislators to work with industry leaders and the Administration before the program expires in April. Indeed, these efforts have already begun.

“On January 23rd, Senator Dianne Feinstein filed a bill on that would end the program and reallocate the employment-based visas allotted to it among the four remaining employment-based visa classes,” Klein says. “While we do not expect this legislation to move, it will provide an impetus for Congressional leaders to pursue legislative efforts to save and reform the program.”