The US EB-5 Immigrant Investor program is making headlines again, thanks to the remarkable judgment rendered by the US District Court for the Northern District of California on June 22, 2021, in the case of Behring Regional Center LLC V. Chad Wolf, et al.
In November 2019, the EB-5 modernization regulations were implemented to increase the minimum investment amount required under the USCIS EB-5 program from $ 500,000 to $ 900,000 and to revise the eligibility standards. targeted employment zones (TEA) to adapt them to modern requirements. In this context, the court ordered to restore the required minimum investment amount to $ 500,000 for TEA-specific projects from the current $ 900,000 and TEA eligibility standards, as before November 21, 2019.
The court ruled that there was no authority to implement said EB-5 modernization rulebook because Acting DHS Secretary McAleenan was not legally Secretary of Homeland Security when ‘he promulgated the “final rule” which gave effect to this modernization of the EB-5. Regulations. Therefore, the final rule is void and the EB-5 regulations that entered into force in November 2019 are canceled with immediate effect.
This development particularly invalidated the regulatory change of November 2019, thus reducing the amount of investment required to its pre-November 2019 level of USD 500,000.
However, industry experts predict that this change will only remain in effect for a very limited period of time, as a government appeal is still possible and the regulations could be reinstated at a later date.
Additionally, as the program is scheduled to expire on June 30, 2021 for legislative reasons, it could further narrow the window of time for investors to deposit at the current reduced price of $ 500,000. Nevertheless, multifaceted negotiations are still underway to extend the program beyond the deadline of June 30, 2021.
Due to the short window of opportunity to deposit at $ 500,000 for a US Green Card, we encourage anyone wishing to apply to contact Step Global as soon as possible.