Donald Trump's first term brought sweeping changes to U.S. immigration policy. His second term in the White House is also expected to bring a raft of immigration changes.
If you want to pursue an EB-5 immigrant investor visa, it pays to know how the new presidency might affect the programme.
What is the EB-5 Visa?
The EB-5 visa is an Immigrant Investor programme in which foreign nationals can obtain a U.S. green card. You must invest a minimum of $800,000 (or $1.05 million for non-Targeted Employment Areas) in a new commercial enterprise that creates at least 10 full-time jobs for U.S. workers. This programme has been a popular path to U.S. residency for high-net-worth individuals and expats.
EB-5 visa under Trump 2.0: What investors should know
It's no secret that President-elect Donald Trump rode a highly-charged anti-immigration wave to the White House. However, the good news is that the EB-5 investor visa was largely unchanged throughout his first term. In fact, some of Trump's own supporters, including billionaire Elon Musk, are in favour of legal immigration.
The Good:
Trump's pro-business agenda could be the kicker for the EB-5 visa. His administration's focus on merit-based immigration and job creation marries well with the programme's objectives. Some key areas of potential upside include:
Tax Cuts for High-Net-Worth Individuals: Trump's previous tax reforms, which included big cuts for corporations and the wealthy, could be revived in his second term. This could make the U.S. an even more attractive destination for EB-5 investors seeking to minimise their tax liabilities.
Deregulation: Reduced red tape and faster project approvals could simplify the process for investors looking to establish businesses in the U.S. through EB-5.
Booming Markets and Investment Climate: The market reacted positively to Trump's re-election, with stocks soaring to new highs. This indicates investor confidence in his pro-business policies.
The Bad:
While the overall outlook for the EB-5 programme is positive, there are some potential drawbacks that will come under the new presidency:
Processing Delays and Increased Scrutiny: During Trump's first term, EB-5 applications experienced significant processing delays and additional scrutiny from immigration officials. This trend could continue, leading to longer wait times for investors seeking green cards.
Security-Focused Immigration Policies: The Trump administration's emphasis on national security and immigration control could result in more stringent vetting and security measures for EB-5 applicants.
Wrapping up: The stability of the EB-5 visa
Despite challenges, many experts believe the EB-5 will remain untouched from both practical and legal standpoints. The EB-5 Reform and Integrity Act of 2022 (RIA) is still in effect through 2027, and Trump won't be able to change the program with a simple executive order. Besides, the new administration's focus on bringing jobs to America aligns with the goals of the EB-5 visa.