EB-5 Regional Center Program to Expire on June 30
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The EB-5 Regional Center Program will lapse on 30th June 2021 as Congress won’t agree on reauthorization before that time. However, Senators Chuck Grassley (R-IA) and Patrick Leahy (D-VT) had attempted to fast-track their EB-5 Reform and Integrity Act of 2021 by the program’s lapse date, their request for unanimous consent. Which would have allowed the bill to immediately pass, was blocked by Senator Lindsay Graham (R-SC). Legislative dealings proceed, yet the result and timing of these negotiations are uncertain. Meanwhile, U.S. Citizenship and Immigration Services (USCIS) has given guidance on how the agency will treat Regional Center filings in the interim.
Background on EB-5 program authorization
The EB-5 Regional Center Program, which has never been made permanent, has long been reauthorized every year in one-year increases as part of yearly government funding legislation. Earlier this year, however, after the last program lapse, Congress made the surprising stride of decoupling program extensions from appropriations legislation. The half-year extension meant that the program would expire midyear unless Congress separately reauthorizes it. This short reauthorization was expected to give Congress a midyear chance to make statutory changes to the program. Which have long been talked about in the legislature. However, thus far, Congress has been unable to reauthorize the program even in its current form.
The EB-5 Reform and Integrity Act of 2021 would have not just reauthorized the EB-5 Regional Center Program through September 2026. But also would have increased the compliance responsibilities of Regional Centers.
However the bill won’t be optimized, this and other legislation remain under review. Further, EB-5 regional center stakeholders are engaged in vigorous advocacy to urge the reauthorization of the program. Fragomen has joined other critical stakeholders in advocating for reauthorization. Stressing to congressional leaders the significant economic benefits that the program has brought and continues to bring to the United States.
How will investors be affected by the EB-5 Regional Center Program expiration?
USCIS has given guidance on how it will treat regional center-related applications and petitions after the termination of the program. Also, while negotiations for reauthorization of the program continue:
Form I-485:
After program expiration, USCIS will continue to receive regional-center affiliated Form I-485 adjustment of status applications. However, will require these filings on hold until further notification.
Form I-924:
Applications for Regional Center designation on Form I-924 got by USCIS on or after 1st July 2021 will be rejected. And any such applications that are pending as of 1st July will be placed on hold until further notice. However, if the application is being filed to amend the regional center’s name, organizational structure, ownership, or administration, the application will not be rejected.
Form I-526:
Form I-526 immigrant petitions got by USCIS on or after 1st July 2021, will be rejected. If they indicate that the petitioner’s investment is related to an approved regional center. Any such petitions pending with USCIS on July 1 will be placed on hold until further notification.
Requests for evidence (RFEs) and related USCIS notices:
For affected Forms I-924 and I-526, USCIS directs stakeholders to respond to any RFE or other notification given by the agency by the required due date. However, USCIS won’t survey the response except if the Regional Center Program is reauthorized. The agency a timely response to process the application at a later time.
Form I-829:
For foreign nationals effectively in EB-5 conditional permanent resident status, USCIS has confirmed that Form I-829 petitions to eliminate conditions on that status won’t be affected by the termination of the Regional Center program.
[USCIS Extends Existing COVID-19 Accommodations on RFEs, NOIDs, Appeals, and Other Responses Through September 30, 2021]
Candidates looking for immigrant visas under the EB-5 Regional Center category from U.S. consulates abroad will also be affected by the changes. After 30th June 2021, except if and until the Regional Center program is reauthorized. The State Department won’t give immigrant visas to those applying at the U.S. consulate under the category.
The firm is closely monitoring congressional deliberations concerning the Regional Center Program. As well as the implementation of the USCIS filing guidelines and will provide updates as developments happen.
