WASHINGTON, March 11, 2022 /PRNewswire/ — Yesterday, the U.S. House of Representatives passed the FY2022 Omnibus Appropriations Bill.
The Omnibus largely did not include immigration policy provisions, however, it did include H.R. 2471, the provision to update and reenact the EB-5 Regional Center Program. The language includes agreed upon robust legislation that would firmly reauthorize an updated and improved EB-5 Regional Center Program. Next step is for the bill to be considered by the Senate and then sent to the President for his signature. This is slated to take place on or before March 14th by midnight.
Below is a summarized version of the updated provisions included in the final agreement of the Omnibus that’s currently making its way to the President’s desk.
The EB-5 Reform and Integrity Act, beginning on page 2609, initially extends the EB-5 program through September 30, 2027, and is to be renewed for 5-year periods thereafter, though the effective date will be 60 days following the date of enactment.
The inclusion of this act protects investors from future expirations of the Program and applies to investors who file before September 30, 2026. The bill also revises the determination of High Unemployment Areas (TEA’s) by revoking state and other official government authority to determine TEA’s and assigning that to the Secretary of Homeland Security.
Minimum EB-5 investment amounts will be increased from $500,000 to $800,000 for high unemployment areas (TEAs) and from $1,000,0000 to $1,050,000 in non-designated TEA areas. Also included is a visa set-aside which provides priority for 32% of all EB-5 visas within a fiscal year for specific projects with 20% of visas for rural projects, 10% of visas for high unemployment areas and 2% for infrastructure projects. If set-aside visas remain unused after the following year, they will be made available to all qualifying EB-5 applicants. Grandfathering language has been enhanced and ensures that investors have the ability to proceed with their cases regardless of sunset dates.
“We have been working alongside USIF for the last decade and applaud their efforts to lead and advocate for the EB-5 Program and help it evolve in a way that supports the nation’s economic goals,” said Ronald Klein, a partner with Holland & Knight LLP. – “USIF ‘S efforts have resulted in getting the industry to a point that welcomes increased integrity measures that further protect investors, eliminate misappropriations, increases economic stimulus and create jobs across America.”
Nick Mastroianni, II, Chairman of USIF added, “We have worked tirelessly for years on improving and reauthorizing the EB-5 Program and are happy to see the inclusion of this act in the Omnibus. We’re thankful to have worked as a united front over the last 9 months or so with aligned industry stakeholders including The US Chamber of Commerce, Laura Reiffl and The EB-5 Investment Coalition, Holland & Knight, RER, REBNY, and Miller Strategies among others.” He continued, “As always, we thank them for their collaboration and support.”
By working closely with members on both sides of the aisle in Congress and Senate with the goal of creating strong economic development and U.S. jobs across urban and rural areas we were able to have the initial bill that was proposed in July refuted to provide an opportunity to allow for a holistic Program that addressed the economic needs of the United States as a whole and has favorable measures for investors worldwide. With that in mind, USIF and its partners worked to bring all stakeholders together with a unified voice to come up with a legislative policy that was embraced by all stakeholders within the industry.
Mastroianni continued, “Today’s success in achieving a bill that will work for the industry at-large, while also benefitting investors from all around the world that have put faith in our country and helped to create hundreds of thousands of jobs over the years, will now continue to be a working Program that is of tremendous value to the United States and that is a direct result of the effort put forth by Senator Lindsey Graham in July 2021. There was broad support across the industry for this very valuable, job creating Program, however, we want to give special thanks to Senator Lindsey Graham, Minority leader Mitch McConnell, Senator John Cornyn, Majority leader Chuck Schumer, Senators Chuck Grassley, Patrick Leahy, Cory Booker and Rand Paul, Speaker Nancy Pelosi, Congressman Kevin McCarthy and Chairman Gerald Nadler,” he concluded.
We will continue to provide you with updates regarding the regional center reauthorization outcome.
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