Key Takeaways
• Seven Indian EB-5 investors sued USCIS on June 17, 2025, for unlawful denial of their green card petitions.
• USCIS allegedly failed to notify, delay redeployment options, and missed congressionally mandated deadlines under the 2022 EB-5 Reform Act.
• Lawsuit could impact thousands of investors worldwide and set precedents for USCIS investor protection enforcement.
A group of Indian EB-5 investors has taken a bold step by suing the chief of the U.S. Citizenship and Immigration Services (USCIS) in federal court, claiming their American green card hopes were unfairly crushed. The lawsuit, filed on June 17, 2025, in the U.S. District Court for the Northern District of California, accuses USCIS of unlawfully denying their EB-5 immigrant investor petitions. At the heart of the case are questions about how USCIS has handled new rules meant to protect investors, especially after the EB-5 Reform and Integrity Act of 2022 (RIA) was passed. The outcome could affect not only these seven Indian nationals but also thousands of other EB-5 investors worldwide.
Who Is Involved and What Happened?
The plaintiffs are seven Indian nationals, some living in California and New York, while others remain in India 🇮🇳. Each invested at least $800,000 in a pooled fund managed by a Texas-based EB-5 Regional Center, which has since shut down. Their goal was clear: secure an American green card by creating jobs in the United States 🇺🇸 through the EB-5 program. The defendant is Alissa Emmel, the Chief of the Immigrant Investor Program Office at USCIS, the agency responsible for running the EB-5 program.
The investors, represented by Galati Law Firm, LLC, filed their Form I-526 (Immigrant Petition by Alien Investor) as early as 2019. This form is the first step for foreign nationals who want to get a green card through investment. You can find the official Form I-526 on the USCIS website.
Why Did the Lawsuit Happen?
The main complaint is that USCIS denied the investors’ petitions after the Texas regional center failed, but did not give them a chance to move their money to a new project, as required by the RIA. The investors say they followed all the rules, invested the required amount, and acted in good faith. They argue that USCIS failed to:
- Notify them about the regional center’s termination in time
- Offer them the option to redeploy their investments into a new, qualifying project
- Meet deadlines set by Congress for shutting down noncompliant regional centers and processing petitions
Instead, the investors claim they were left in legal limbo, losing both their chance at a green card and their investment.
The EB-5 Program: A Pathway to the American Green Card
The EB-5 Immigrant Investor Program was created by Congress in 1990. It allows foreign investors to get a U.S. green card if they invest in projects that create at least 10 full-time jobs for American workers. The minimum investment is $800,000 if the project is in a Targeted Employment Area (TEA)—usually a rural area or a place with high unemployment. For other areas, the minimum is $1,050,000.
The program has been popular among Indian nationals and investors from other countries who want a direct path to permanent residency in the United States 🇺🇸. However, the program has faced problems with fraud, failed projects, and delays, leading Congress to pass the EB-5 Reform and Integrity Act of 2022.
What Did the EB-5 Reform and Integrity Act of 2022 Change?
The RIA was designed to make the EB-5 program safer and more transparent for investors. Key changes included:
- Mandatory deadlines for USCIS to terminate regional centers that do not follow the rules
- Protections for “good faith” investors—those who did everything right but lost out because of fraud or a project’s failure
- The right to redeploy investments if the original project fails, so investors can still qualify for a green card
- Stronger reporting and fee requirements for regional centers to prevent abuse
These reforms were supposed to make the program fairer and more reliable. But, as this lawsuit shows, problems remain with how USCIS is putting these rules into practice.
Allegations Against USCIS: What Are the Investors Claiming?
The lawsuit lays out several serious claims against USCIS:
1. Unlawful Denial of Petitions
The investors say USCIS denied their Form I-526 petitions without warning them that the Texas regional center had been terminated. They also say they were not given the chance to move their investments to a new project, even though the RIA requires this option for good-faith investors.
2. Failure to Implement RIA Protections
According to the lawsuit, USCIS ignored key parts of the RIA that are supposed to protect investors who did everything right. The agency allegedly did not follow the law’s instructions to let investors redeploy their funds if their original project failed through no fault of their own.
3. Delays and Noncompliance with Deadlines
The plaintiffs claim that USCIS missed important deadlines set by Congress for shutting down noncompliant regional centers and for processing investor petitions. These delays left investors in a state of uncertainty, unable to move forward with their immigration plans or recover their investments.
4. Violation of Due Process
The investors argue that USCIS’s actions violated their rights under the Immigration and Nationality Act (INA) and the RIA. They say they were denied fair treatment and the protections Congress intended for them.
How Did the Regional Center Fail?
The Texas regional center that managed the pooled investment fund failed to pay required fees and did not submit annual compliance reports. These failures led to its termination by USCIS. However, the lawsuit claims that USCIS did not terminate the center by the July 1, 2023, deadline set by the RIA. This delay, the investors argue, made things worse for them, as they were not informed in time to take action.
What Are the Practical Implications for EB-5 Investors?
This case highlights several important risks and challenges for EB-5 investors:
- Loss of Green Card Eligibility: If USCIS denies a petition without offering redeployment, investors lose their chance at a green card, even if they followed all the rules.
- Financial Loss: Without the ability to move their investment to a new project, investors may lose the money they put in.
- Legal Uncertainty: Delays and unclear communication from USCIS can leave investors stuck, unable to plan their future or recover their funds.
- Impact on Families: Many EB-5 investors apply with their spouses and children, so a denial can affect entire families’ plans to live in the United States 🇺🇸.
What Do the Plaintiffs Want?
The investors are asking the court to:
- Order USCIS to follow the RIA and give them the chance to redeploy their investments
- Reverse the denials of their Form I-526 petitions
- Enforce the deadlines and protections Congress put in place for good-faith investors
Their goal is to restore their path to an American green card and recover the security they thought the EB-5 program would provide.
Legal and Expert Commentary
Alexandra George Santhanam, the attorney representing the investors, stressed that her clients did everything the law required and deserve the protections promised by Congress. The Galati Law Firm, which is handling the case, said this is the first lawsuit of its kind since the RIA was passed. They argue that USCIS must be held accountable for following the law and protecting investors.
As reported by VisaVerge.com, this lawsuit could set an important precedent for how USCIS handles similar cases in the future. If the court rules in favor of the investors, it may force USCIS to change how it deals with regional center failures and investor protections.
Current Status of the Lawsuit
As of July 3, 2025, the lawsuit is active in federal court. USCIS has not yet made a public statement or filed a response. The case is being closely watched by immigration lawyers, EB-5 investors, and regional centers across the country. Many believe the outcome could shape how the EB-5 program is run for years to come.
Why Does This Matter for Other EB-5 Investors?
This case is not just about seven Indian nationals. It could affect thousands of EB-5 investors from around the world. If the court finds that USCIS must offer redeployment options and follow strict deadlines, it will give more security to future investors. On the other hand, if the court sides with USCIS, it could make the program riskier and less attractive.
For Indian investors, who make up one of the largest groups in the EB-5 program, the stakes are especially high. Many have invested their life savings in hopes of getting an American green card for themselves and their families.
What Should EB-5 Investors Do Now?
If you are an EB-5 investor or thinking about becoming one, here are some steps to consider:
- Stay Informed: Follow updates on this lawsuit and other EB-5 policy changes. The USCIS EB-5 Program page is the best source for official news.
- Work with Trusted Professionals: Choose experienced immigration lawyers and regional centers with a strong track record.
- Understand Your Rights: Learn about the protections offered by the RIA, especially if your regional center faces problems.
- Keep Records: Save all documents related to your investment and immigration case. This can help if you need to take legal action.
- Ask About Redeployment: If your project fails, ask your regional center and lawyer about options to move your investment to a new qualifying project.
The Bigger Picture: EB-5 Program Challenges and Reforms
The EB-5 program has long been seen as a win-win: investors get a path to U.S. residency, and the United States 🇺🇸 gets new jobs and economic growth. But the program has also faced criticism for fraud, failed projects, and slow processing times.
The RIA was supposed to fix many of these problems by:
- Making regional centers more accountable
- Giving investors more protection if things go wrong
- Setting clear deadlines for USCIS to act
However, as this lawsuit shows, there are still gaps between what the law says and how it is enforced. Investors need clear rules and timely action from USCIS to feel confident in the program.
What Happens Next?
The court will review the facts and decide whether USCIS must offer redeployment and follow the RIA’s deadlines. If the investors win, it could force USCIS to change its policies and give more protection to EB-5 investors. If USCIS wins, investors may face more risk and uncertainty.
Immigration experts expect more lawsuits if USCIS does not improve its handling of regional center failures and investor protections. The outcome of this case will likely influence how future EB-5 investors approach the program and how regional centers operate.
Conclusion: A Turning Point for EB-5 Investors
This lawsuit is a key moment for the EB-5 program and for foreign investors hoping to get an American green card. It highlights the need for USCIS to follow the law and protect those who invest in good faith. The case also shows the importance of strong legal representation and staying informed about your rights as an investor.
For now, EB-5 investors should watch this case closely, work with trusted professionals, and make sure they understand the latest rules and protections. The future of the EB-5 program—and the dreams of many families—may depend on what happens next in this California courtroom.
Learn Today
EB-5 → U.S. immigrant investor visa program requiring investment and job creation for a green card.
Form I-526 → Petition filed by foreign investors seeking permanent U.S. residency through EB-5 investment.
Regional Center → USCIS-approved organization that pools EB-5 investments for job-creating projects.
Redeployment → Legal option to move EB-5 investments to new projects if the original fails.
RIA → EB-5 Reform and Integrity Act of 2022 designed to improve program transparency and investor protections.
This Article in a Nutshell
Seven Indian EB-5 investors sued USCIS in 2025 over denied green card petitions after a Texas regional center closed. Investors accuse USCIS of ignoring redeployment rights under the 2022 Reform Act. The lawsuit challenges USCIS’s compliance, highlighting risks and impacting EB-5 investors globally with potential legal precedent.
— By VisaVerge.com
