The Department of Homeland Security on Wednesday proposed reducing application fees for EB-5 immigrant investors.
“The proposed rule expressly calls for lower fees, and it is proceeding through the formal rulemaking process, suggesting the intent is real and there is a clear procedural pathway for implementation,” Morgan Bailey, a partner at Mayer Brown and former senior official at DHS, told Newsweek.
Why It Matters
The EB-5 visa allows foreign investors to obtain a U.S. green card by investing in a qualifying American business. The investment must be at least $800,000 and create a minimum of 10 full-time jobs for U.S. workers, making the process conditional and typically longer than other visa categories. The program offers a direct path to permanent residency for the investor, their spouse and children under 21.
What To Know
DHS published a notice on the Federal Register of proposed rulemaking that would revise fees for Employment-Based Immigration, Fifth Preference (EB-5) benefit requests, codify provisions of the EB-5 Reform and Integrity Act of 2022, and implement several new statutory requirements intended to support program integrity and USCIS operation.
Under the proposal, DHS’ draft fee schedule indicates that the total proposed fee for initial I-526 petitions for standalone investors would be $9,625, about 14 percent below the current $11,160 charge, while the total proposed fee for I-526E petitions for regional-center investors would be $9,530, roughly 15 percent below the current level.
The proposal also introduces a $95 technology fee for initial I-526 and I-526E filings to support improvements to IT systems and program infrastructure, which offsets a portion of the savings. Overall, an EB-5 investor would save $1,500 on the initial petition and $1,665 on the Form I-829 petition.
“This is a step in the right direction by USCIS, but not quite enough,” Ashok Kumar Adusumilli, director of EB5Resources.com, told Newsweek.
Bailey said: “These savings are helpful but small relative to the overall program cost, which involves an investment of $800,000 or $1,050,000, plus legal and administrative fees.”
The proposed rule would implement elements of the regional center reauthorization law, which increased the minimum investment to $1.05 million, or $800,000 for rural areas and communities with high unemployment.
It also sets target timelines for processing EB-5 applications, to complete visa adjudications for regional center investors within 240 days and review applications for enterprises seeking regional center designation within 180 days.
The proposal is based in part on a fee study mandated by Congress, which found that processing I-526 petitions costs USCIS about $35.5 million. Although the figure is higher than prior estimates, the agency indicated that fees could be set lower because exemptions are not available for these filings.
DHS said the fee adjustments are intended to align USCIS resources with the requirements of the EB-5 Reform and Integrity Act of 2022 and to “enhance and maintain the integrity of the EB-5 program.”
The proposed rule would also formalize certain elements of the 2022 statute, establish an EB-5 Integrity Fund fee framework including inflation adjustments, outline proposed penalties for late Integrity Fund payments, and create a new Form I-527, Amendment to Legacy Form I-526, to process certain legacy petitions.
The proposed integrity fund provisions include a graduated late-payment penalty structure.
Obtaining U.S. permanent residency through the EB-5 program involves several steps. First, the investor submits Form I-526 or I-526E to demonstrate a qualifying investment and a plan for job creation. Once a visa becomes available, the investor either files Form I-485 to adjust status in the United States or completes consular processing through Form DS-260 abroad.
After approval, the investor receives conditional permanent residency for two years. In the final stage, the investor submits Form I-829 to show continued investment and job creation, which removes the conditions on residence and converts the conditional green card into a permanent one.
Bailey said that it appears the new rulemaking will not affect the initial green-card fees for adjustment of status or for consular immigrant visa processing.
Meanwhile, President Donald Trump unveiled a “gold card” proposal aimed at ultra-wealthy immigrants, which Commerce Secretary Howard Lutnick initially said the proposal might replace the EB-5 program before the administration backtracked. The administration later clarified that the gold card plan would function alongside, rather than replace, the existing EB-5 visa program.
What People Are Saying
Morgan Bailey, a partner at Mayer Brown and former senior official at DHS, told Newsweek: “Many of the reductions are modest, suggesting DHS is willing to lower fees but in a cautious way, which increases the practical chance of adoption.”
Ashok Adusumilli, director of EB5Resources.com, told Newsweek: “Historically, the Form I-526E filing fee was $3,675, but USCIS sharply raised it by nearly 200 percent to $11,160 on April 1, 2024, without first seeking public comment. Now, with the agency proposing a modest 14 percent reduction to $9,625, it’s still a hefty increase compared to previous levels. I don’t expect significant pushback during the public comment period, so EB-5 investors will likely benefit from this decrease once the rule is finalized next year.
“EB-5 Regional Centers also stand to gain under the proposed rule, with substantial fee reductions to the tune of tens of thousands of dollars for Forms I-956 and I-956F. The introduction of a $2,740 filing fee for Form I-956K is also a welcome and necessary change, helping curb abuse by unlicensed agents, in violation of FINRA and SEC regulations, who were previously filing I-956K forms for free.”
What Happens Next
The proposed rule is now open for public comment for 60 days, during which stakeholders can submit feedback through the Federal Register docket. Once the comment period ends, DHS will review submissions before issuing a final ruling, which would determine whether the fee reductions and other provisions take effect.
