Speaking from the Oval Office this afternoon, President Trump proposed replacing the EB-5 Program with a new program that would offer “gold cards” for $5 million to wealthy foreign nationals seeking residency, and subsequently naturalization, in the United States. The President’s statement, subsequent comments by a member of the Administration, and speculation notwithstanding, the EB-5 Program, which Congress passed in 1990 and which was most recently renewed under the EB-5 Reform and Integrity Act of 2022 (the “RIA”) on March 15, 2022, remains the legal investment by residency program in the US.
This law firm has been closely tracking and writing about the flurry of executive orders and directives (“Executive Actions”) since President Trump took office on January 20, 2025. A running list and analysis of such Executive Actions can be found here.
Importantly, as of the date hereof, the Trump Administration has taken no actual Executive Action to replace the EB-5 Program with what may be called the “Gold Card Program.” Regardless, even if such action were to be taken, the RIA remains the lawful immigration by investment program and it would require an act of Congress to pass legislation for President Trump to sign creating the Gold Card Program and terminating the EB-5 Program.
For decades, immigration has been a controversial topic on Capitol Hill. As such, passage of legislation creating a Gold Card Program and terminating the EB-5 Program, which has had broad bipartisan support for decades, would require significant efforts by the Administration and very close coordination with both the Senate and the House of Representatives. In addition, the threatened impact on the thousands of pending EB-5 applicants and their family members (who filed prior to or subsequent to the enactment of the RIA) and the hundreds of active real estate and other job-creating projects that are in the process of securing EB-5 capital, and the potential loss of thousands of jobs by the replacement or termination of the EB-5 Program, may lead to litigation.
It is important to note that the EB-5 Program is not, as was stated during the President’s conversation with members of the press, rife with fraud or corruption. Having represented hundreds of EB-5 offerings and thousands of investors over the course of many years, we can attest to the intense scrutiny that USCIS, which oversees the EB-5 Program, and the SEC have applied and continue to apply when reviewing submissions of EB-5 applicants and of EB-5 issuers. Moreover, one of the primary reasons for the enactment of the RIA was to bring renewed energy, accountability, and integrity to the EB-5 Program. Based on data that USCIS published, between the effective date of the RIA and the summer of 2024, the EB-5 Program brought $6.1 billion of investment into various rural and urban communities in the US. That figure will increase once the hundreds of millions of dollars that have been invested under the EB-5 Program in the last eight months are added.
We will continue to monitor any developments on this matter and provide any additional analysis as warranted.
