Joe Biden has continuously communicated his plans and policy changes for his first 100 days in office. We have dissected and analyzed the policies he wants to immediately give attention to and have applauded his direction. While his humanitarian approach toward immigration is truly admirable and is exactly what the U.S. needs after Trump, the U.S. economy and unemployment rate needs stimulation to recover from the COVID-19 effects. It has been mentioned countless times that the EB-5 immigrant investor program was established for the stimulation of the U.S. economy and labor market and has been highlighted as a vital tool for the recovery of the U.S. Perhaps the most pressing question is will Joe Biden increase the required investment amount to meet inflation.
Pursuant to the new rule to modernize the EB-5 immigrant investor program published by the U.S. The Department of Homeland Security states that the capital investment amount will increase every 5 years. This new rule has been in effect since November 2019. Therefore, we would expect an increase of the capital investment to be in 2024. However, the unemployment rate is at its highest since the global pandemic and the Joe Biden administration will be looking at all avenues to rectify the situation and it can be assumed that the increase in capital investment may be sooner than anticipated.
At the establishment of the EB-5 immigrant investor program, Congress had set the contribution investment amount at $1,000,000 per application and that it must be kept on track with the increase in inflation rate. The capital contribution amount was then decreased to $500,000 and for years it was retained at that amount. Based on the rate of inflation if the contribution amount had remained at $1,000,00 then the current investment amount would be $1,911,000. As the amount decreased to $500,000 calculating it against the current rate of inflation the investment contribution should be $955,900.
In 2019, Trump increased the contribution requirement to $900,000. While the increase attempted to catch up with the rate of inflation it clearly still was not sufficient to place the program on par with the inflation rate. Furthermore, based on the trajectory of other national investment visa programs, inflation is not the only reason for increasing the investment contribution. There has been a trend of governments increasing the investment amount based on popularity of the program. The backlog of EB-5 investors waiting to receive their green cards is a clear indication of how popular the program is.
From the Middle East point of view the American Legal Center has successfully obtained over 500 green cards for families wanting to relocate to the U.S. As Dubai is known to be the pit stop to one’s final destination many families who meet in the region look to the U.S. for their retirement and children’s future. This is additionally evident of the increasing growth in popularity of the program. While there are other programs and countries which offer either citizenship through investment or residency visas, the EB-5 immigrant investor program is still considered to be the best program to invest in.
Prospective investors must start looking at the possibility of filing before the inauguration of Joe Biden on 21 January 2021. Granted Joe Biden will implement any or all changes to immigration programs in a systematic manner and not as chaotic as Trump, this will give prospective investors time to keep evaluating the situation and we can assume that the increase will not be immediate. However, we can also assume that chances of it occurring some time during 2021 are much higher.
Our team of U.S. licensed lawyers have years of experience in helping individuals and families apply for U.S. residency via the EB-5 program. If you are ready to start your migration journey with The American Legal Center of Dubai, contact us today for more information.