A group of five EB-5 Regional Centers operators, along with the EB-5 trade organization Invest in the USA (IIUSA), have collectively filed a lawsuit against the US Citizenship and Immigration Services (USCIS).
The lawsuit difficulties the unilateral deauthorization by USCIS of the over 600 designated regional centers existing at the time that the EB-5 Reform and Integrity Act of 2022 (RIA) was enacted into law, as well as its interpretation of the RIA that requires each regional center to apply anew for designation and get approval as such before commencing.
TOI had earlier covered this new improvement requiring redesignation by regional centers. The EB-5 program has been gaining popularity among high net worth families in India and also among H-1B specialists. Investment via a regional center is the preferred route and it offers a green card in a shorter span as compared to, say, an employment-linked green card that takes years for an Indian candidate.
These regional centers – Civitas Capital Group, EB5 Capital, Golden Gate Global, CanAm Enterprises, and Pine State Regional Center – and IIUSA contend that USCIS’s position is in opposition to the plain meaning of the RIA and thwarts Congressional intent in enacting the RIA.
Five EB-5 Regional Centers file a lawsuit against new registration requirements
“We are putting our different business interests aside and combining forces to reach the common goal of safeguarding our clients’ rights and continuing to give required capital for economic development projects,” said the plaintiffs in a joint press statement.
“Through this action, we look to protect the viability of this highly successful economic development and job-creating program. The regional centers that facilitate the program, and the foreign investors who participate in the program. We believe Congress expected to allow regional centers to immediately get back to the business of EB-5. While at the same time working to bring themselves rapidly into compliance with the new integrity and different requirements of the RIA. There is consensus within the EB-5 industry that Congress planned to have the Regional Center program back in business. As soon as the RIA was in effect on 15th May 2022,” said another statement.
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Collectively, these five EB-5 operators manage 26 regional centers across 21 states in the US. Throughout the years, they have worked with $5.3 billion in EB-5 investments. Developing 143 projects across the nation, and they are responsible for the creation of more than 190,000 jobs for US workers.
As per the information collected and analyzed by IIUSA, between 2008 and 2021. The EB-5 Program helped generate $37.4 billion in foreign direct investment. To create and retain US jobs for Americans, all at no cost to the taxpayer.