US administration announced the termination of the EB-5 visa program, a popular route for foreigners to obtain US citizenship. In place of the EB-5 Visa, Trump is launching the ‘Gold Card’, which encourages wealthy foreigners to invest $5 million, resulting in job creation and more taxes.

By ending the EB-5 visa program, the doors to settle in America for those who were willing to invest $800,000 in a Targeted Employment Area or $1,050,000 in other areas seems to be closing soon.

Commerce Secretary Howard Lutnick, during the announcement, referred to it as the ‘Trump Gold Card’ and said, “EB-5 program was full of nonsense, make-believe and fraud and a way to get a green card which was low priced. So, rather than having this ridiculous EB-5 program, we are going to end this EB-5 program and replace it with Trump’s gold card.”

Let us see what is the EB-5 Visa program, its eligibility conditions, and what it offers to global citizens.

The EB-5 visa program allows foreigners to obtain a green card, leading to permanent residency and U.S. citizenship. Trump’s Gold Card also aims to do the same, however, the threshold for minimum investment amount will now be almost five times. This means, Trump aims to attract the ultra-rich foreigners who can invest a much higher amount to get the similar privileges of the US Green Card.

EB-5 visa allows applicants to work, run businesses, and travel outside the country within six to eight months, unlike H-1B visa holders who can work for specific employers.

The EB-5 visa program provides investors with a two-year conditional green card in exchange for capital investment in a selected employment area and the generation of US jobs. Investors can make a direct or indirect investment of up to USD 800,000 in a US business located in a Targeted Employment Area.

Alternatively, put $1.05 million into a business in a high-employment area. In Indian rupees, the capital requirement is almost Rs 9.1 crore, or Rs 6.9 crore in a targeted employment area (TEA) in the United States. The money invested might be used to fund new commercial ventures or regional center programs.

With the approval of the I-526 petition, you are eligible for two years of conditional residency in the United States through the EB-5 visa application process. To become an EB-5 visa holder and permanent resident of the United States, you must file an I-829 petition before your conditional residency period expires. Once the I-829 petition is filed, it takes between 22 and 45 months to receive a permanent green card.

The US EB-5 visa program, also known as the Golden Visa, is a popular choice for Indians seeking permanent US residency and significant investments, offering a quicker, simpler, and more secure route to obtaining a Green Card.

The EB-5 visa provides a straightforward process and immediate benefits for living and working, and travel, making it an excellent option for investors seeking stability and the American dream.

USCIS administers the EB-5 Immigrant Investor Program, which was created by Congress in 1990s to stimulate the U.S. economy through job creation and capital investment by foreign investors.

On March 15, 2022, President Biden signed the EB-5 Reform and Integrity Act as part of the Consolidated Appropriations Act, 2022, which established additional conditions for the EB-5 immigrant visa category and the Regional Center Program. Immigrant visas are authorized through the Regional Center Program until September 30, 2027.

Between October 1, 2023 and May 31, 2024, or FYTD 2024, a total of 7,173 EB-5 visas were issued through consular processing, representing a 42% year-over-year increase from the same period in FY2023. However, following a boom in visa processing in December 2023, the monthly visa issuance to Indians at the United States Consulate in Mumbai, India, exhibited a fall in productivity, with just 50-60 visas processed per month and only 4 EB-5 visas issued in May.

During the first eight months of FY2024 (October 1, 2023 – May 31, 2024), 512 EB-5 visas were given to Indian applicants through consular processing, a 22% decrease year on year.

Applicants from China, Vietnam, India, Taiwan, and South Korea continue to represent the largest investor groups receiving EB-5 visas.

As the Trump administration prepares to terminate the EB-5 visa program in favor of a new US Golden Visa or US Gold Card targeted at attracting bigger capital, keep a watch out for future immigration reforms, notably in the H-1B visa program.