New EB-5 Bill Expands Housing, Speeds Affordable Green-Card Processing

(UNITED STATES) A new bill in the U.S. Senate would reshape the EB-5 immigrant investor program by steering foreign money into affordable housing and rental projects, while promising faster green-card processing for investors who back those developments. Introduced by Senator Ruben Gallego, a Democrat from Arizona, the proposal would extend the program’s lower investment threshold of $800,000 to a wide range of housing projects and give priority processing to investors whose funds help build or preserve homes for lower- and middle‑income tenants.

What the bill changes about EB-5 investment thresholds

Under current law, most EB-5 investors must invest $1,050,000 in a U.S. commercial enterprise, or $800,000 if the project is in a so‑called Targeted Employment Area (TEA), such as a rural region or a place with high unemployment.

The new bill would:

• Keep the dollar figures of $1,050,000 and $800,000.
• Expand what qualifies for the lower $800,000 level to include more residential real‑estate projects, such as:
  • rental buildings,
  • rehabilitation of run‑down properties,
  • homes that buyers plan to use as their main residence.

Priority processing and focus on affordable housing

The proposal goes further by promising faster green-card processing for investors whose EB-5 funds are tied directly to affordable housing projects. Priority treatment would apply to developments that build, preserve, or rehabilitate homes aimed at people struggling with high rents or high purchase prices.

For many foreign investors — especially those from countries with long visa waits — the promise of a shorter path to U.S. permanent residency could be as important as the investment terms themselves.

“By steering more EB-5 investment towards housing, we can boost the housing supply, bring down costs, and create good jobs for American workers,” Senator Gallego said in promoting the proposal.

His office and backers in the real‑estate sector argue that foreign capital, already an accepted part of the EB-5 system, can be pointed more directly at the growing crisis in rental prices and home ownership in many American cities. Construction unions and some housing groups have welcomed the idea of tying a long‑standing immigration program more tightly to housing construction.

Why supporters say this matters

The bill arrives amid a sharp mismatch between people seeking homes and units available, particularly in fast‑growing metro areas. Supporters argue:

• If a portion of global EB-5 demand moves into affordable housing, it could mean billions of dollars for building or fixing rental units.
• The program would still meet its core rule that each qualifying investment must create at least 10 full‑time jobs for U.S. workers.
• Analysts and sponsors see this as a way to link immigration, housing, and job creation through an existing legal channel (per analysis by VisaVerge.com).

Background on EB-5 and recent usage

The EB-5 immigrant investor program, created by Congress in 1990, offers foreign nationals a path to conditional permanent residency in exchange for a qualifying investment that creates jobs.

Key facts cited in the bill’s background papers:

• The EB-5 category is capped at about 7% of all employment‑based green cards issued each year.
• It is subject to per‑country limits, which can cause backlogs for high‑demand nations.
• In the 2023 fiscal year, nearly 12,000 people obtained conditional permanent resident status through EB-5.

Filing process, forms, and fee changes

Under rules described by U.S. Citizenship and Immigration Services on its EB-5 information page, investors file a petition currently known as Form I-526 (Immigrant Petition by Alien Investor). That form must show the lawful source of funds and the job‑creation plan.

A notable proposal detail: the bill’s briefing materials note a sharp cut in filing fees. The I-526 fee would fall from $11,160 to $3,675, easing the upfront cost for many families considering the EB-5 route.

• The official form is available through USCIS as Form I-526.

How the bill redirects EB-5 investments

The new housing‑focused bill would not change the basic job‑creation rule or the requirement to prove lawful source of funds. Instead, it:

• Redraws which project types can qualify for the lower $800,000 investment level and for priority processing.
• Shifts reduced‑level investments away from infrastructure like bridges and roads or isolated rural businesses and toward urban and suburban affordable housing projects, such as:
  • rental towers,
  • mixed‑income complexes.

Impact for investors from high‑demand countries

For investors from India, China, and other high‑demand countries, the changes could affect immigration planning:

• Many skilled workers and families view EB-5 as a parallel track to a green-card rather than waiting years in employment‑based queues.
• The ability to invest in tangible housing projects (rather than unclear commercial ventures) may make EB-5 more understandable and appealing.
• Indian nationals, in particular, face growing uncertainty in temporary work categories (e.g., H‑1B), which increases interest in EB-5 as an alternative.

Differences from traditional EB-5 deals

Backers say widening the menu of projects is not just about investor comfort but also about practical demand. Traditional EB-5 deals often focused on:

• hotels,
• luxury condominiums,
• big mixed‑use projects for wealthier tenants and tourists.

By contrast, the new proposal emphasizes rental housing and primary residences priced for typical workers.

This approach aligns with political pressure on Congress to address soaring rents and mortgage costs.

Risks and due diligence

The bill also highlights longstanding EB-5 risks:

• Investors must show that their money will help create at least 10 full‑time jobs, so real‑estate projects often rely on detailed job‑creation projections related to construction and operations.
• If a project is poorly designed, over‑leveraged, or fails to finish, investors can lose both their money and their chance at a green-card.
• Lawyers note that housing projects are not automatically safer than hotels or office towers; each deal requires careful review of finances, permits, and job‑creation calculations.

Public partnership and local backing

Policy notes describe encouragement for projects that expand housing stock and have strong local backing. Supporters in the housing sector argue:

• Pairing foreign funds with city or state housing programs could stabilize developments through additional oversight and funding.
• The bill, however, does not require public partnership — private affordable‑rental developments could still seek EB-5 money.

Effects on families, students, and household decisions

For students, young workers, and self‑employed professionals (notably from India), the proposal may prompt new family decisions:

• Parents who once favored F‑1 → H‑1B pathways might consider pooling funds to meet the $800,000 threshold plus fees.
• In many EB-5 cases, the main investor’s spouse and unmarried children under 21 can receive derivative status, allowing them to live, study, and work in the 🇺🇸 United States with far fewer restrictions than temporary visa holders.

Remaining limits and timing considerations

Important constraints that would remain:

• The bill does not remove EB-5 per‑country visa caps; backlogs may persist and vary by demand.
• Potential investors should monitor the U.S. State Department’s monthly visa bulletin to see how EB-5 cut‑off dates move for their country.

Timing context:

• The $800,000 and $1,050,000 thresholds are scheduled to be adjusted for inflation starting January 2027 under earlier reforms.
• The housing‑focused bill does not roll back those inflation adjustments; it would operate alongside them if both changes take effect.

Political outlook and stakeholder response

Politically, the proposal faces uncertainty:

• The Senate is under Republican control and handling multiple priorities (border security, federal spending).
• Some Republicans have previously supported EB-5 as a market‑based immigration route; others oppose perceived “citizenship for sale.”
• The bill’s focus on affordable housing is intended to show a clear public benefit, but its legislative future is unclear.

Support and reactions:

• Real‑estate developers and housing advocates back the bill as a source of patient capital for complex projects that struggle with financing.
• Industry groups note that banks have become more cautious about lending for multi‑family housing amid rising construction costs.
• EB-5 investors, who often accept lower returns for immigration benefits, can help make more projects financially viable while meeting job‑creation rules.

Bottom line for potential investors

For those watching from abroad, the mix of promises and risks remains familiar:

• EB-5 blends immigration law, finance, and long‑term planning; the bill would not change that character.
• It would tilt the playing field toward affordable housing and away from many luxury and hospitality projects.
• Families considering EB-5 will still need:
  • careful legal advice,
  • clear business information,
  • realistic expectations about timing and potential backlogs.

For some prospective investors, the emotional appeal matters: knowing their money helped create housing for hundreds of families can be as meaningful as obtaining a green-card. For U.S. cities needing rental units and foreign‑born families seeking stability in the 🇺🇸 United States, Senator Gallego’s proposal offers a new way to tie those hopes together — if Congress chooses to act on it.