President Trump signed a spending bill thereby averting a government shutdown. The continuing resolution (CR) provides for a short-term extension of the EB-5 Regional Center Program through December 21, 2018. The CR also extends the E-Verify and Religious Workers programs. The CR extends the EB-5 Regional Center Program without any changes. We will be closely following activity on Capitol Hill surrounding EB-5 reform and/or extension efforts.
The EB-5 Program has been extended for six months, through September 30, 2018, as part of the omnibus spending bill funding the federal government. Congress passed the spending bill early Friday morning and President Trump signed the bill today. The extension of the EB-5 Program does not include any of the controversial reforms. Potential reforms include increasing the minimum investment amount, creating additional safeguards, and instituting a visa set-aside for rural projects.
I invite you to read my May 2017 article published by Law360 explaining some of the reforms being discussed. Without the omnibus bill, there would have been a government shutdown and the EB-5 Program would have expired. We will be closely following industry dialogue and activity on Capitol Hill surrounding EB-5 reform and/or extension efforts in the coming months.
Congress has passed a stopgap spending bill which will extend the EB-5 Regional Center Program through January 19, 2018 without change. It is expected President Trump will sign the bill today, thereby averting a government shutdown. Without the stopgap spending bill, the EB-5 Program was otherwise due to expire tonight. We will be closely following activity on Capitol Hill as efforts towards EB-5 reform continue.
The EB-5 Program has been extended through December 22, 2017. The Program was extended as part of a continuing resolution (CR) funding the federal government through December 22, 2017, thus preventing a government shutdown.
There are no changes to any federal programs with this two-week extension which is welcome news for EB-5 industry stakeholders.
The U.S. Congress extended the EB-5 Regional Center Program through December 8, 2017, without reform, as part of a stopgap continuing resolution to fund the federal government (H.R.601), which the President signed into law on September 8.
The language in H.R.601 Section 106 states that the program is “extended to December 8,” which does not necessarily mean “guaranteed to remain unchanged until December 8.” Congress is reportedly actively working on a major EB-5 reform bill and they could come up with legislation before December that affects multiple visa categories including EB-5.
The extension was expected after the summer recess due to other congressional priorities, like hurricane-relief, tax reform, missile defense against North Korea and other military spending, and prolonged budget negotiations. Under the package approved Friday, government funding will run out on Dec. 8. The biggest fiscal fights of the year will now be pushed to December, when lawmakers typically are under pressure to reach deals before leaving for the holidays.
Alka Bahal is a Partner and the Co-Chair of the Corporate Immigration Practice of Fox Rothschild LLP. Alka is situated in Fox Rothschild’s Roseland, New Jersey office though she practices throughout the United States and at Consulates worldwide. You can reach Alka at (973) 994-7800, or firstname.lastname@example.org.
Fox counsel Ali Brodie, who heads Fox’s EB-5 Immigrant Investor Services practice, has written a piece for Law360 providing a comprehensive view of reform efforts centered on the EB-5 program. Extended to September 30, 2017, there are now bipartisan discussions to update and improve the program. Changes being discussed include reclassification of Targeted Employment Areas (TEAs), increases to minimum investment amounts, and stricter integrity and oversight measures. Lawmakers are also considering changes to the number of visas available annually, and more efficient processing to address the application backlog.
We invite you to read the full piece “Potential EB-5 Changes Ahead,” originally published by Law360 on May 16, 2017.
Today, Congress submitted a proposed omnibus spending bill to extend funding to the government through September 30, 2017. The EB-5 Regional Center Program is included in the bill which proposes a clean extension without any of the much-debated reforms. If approved, the EB-5 Regional Center Program will be extended through September 30, 2017, offering lawmakers and stakeholders additional time to reach a long-term legislative solution.
Today, Congress extended the EB-5 Program for 1 week through May 5, 2017. The Program was extended as part of a continuing resolution (CR) funding the federal government through May 5, 2017, thus preventing a government shutdown. The EB-5 Program would have otherwise sunset today. The President has until midnight tonight to sign the CR.
This is welcome news for EB-5 industry stakeholders as the program is alive for another week and allows more time for negotiations with lawmakers, with the ultimate goal of reaching a deal that would reform the program with a long-term reauthorization.
Today, January 13, the Department of Homeland Security (DHS) will expand upon the notice of proposed rulemaking released on January 11, 2017 by publishing a Notice of Proposed Rulemaking in the Federal Register, titled ‘EB-5 Immigrant Investor Program Modernization,’ addressing a variety of policy issues including Targeted Employment Area (TEA) designation and minimum investment amounts. Notably, minimum investment amounts may increase from $500,000 to $1.35 million for TEA investments, and from $1 million to $1.8 million for non-TEA investments.
Changes to TEA designation include eliminating the method of designation by which states designate areas of high unemployment, and limiting how census tracts can be aggregated to qualify for high unemployment designation. These regulatory changes will impact both EB-5 Regional Center projects and EB-5 Direct projects. The deadline for stakeholders to submit comments on the proposals is April 11, 2017. EB-5 investors or those interested in pursuing an EB-5 investment opportunity should consider acting quickly.
Ali Brodie is counsel in the Denver and Los Angeles offices of Fox Rothschild LLP.
Fox Rothschild LLP has formalized its EB-5 Immigrant Investor Services practice, led by Scott Bettridge in Miami and Roy J. Carrasquillo in New York. The national practice boasts a multidisciplinary group of attorneys drawn from its Corporate, Immigration, Government Relations, International, Real Estate, Securities and Tax practices. The firm’s EB-5 team provides an integrated approach for clients with EB-5 matters, particularly in the areas of complex and structured financing, tax credits, bonds, immigration matters, corporate mergers, acquisitions and formation, and alternative financing. The EB-5 practice group members will continue to serve developers, individual EB-5 investors, states and municipalities, EB-5 service providers and established regional centers throughout the United States.