EB-5 reforms needed to curb fraud, abuse, national security risks
Washington, D.C. - Bipartisan, bicameral Judiciary Committee leaders today reaffirmed their commitment to reform the troubled EB-5 investor visa program ahead of its scheduled expiration on April 28, or to let the flawed program expire if reforms are not possible. Senate Judiciary Committee Chairman Chuck Grassley and Senator Patrick Leahy, along with House Judiciary Ranking Member JohnConyers, Jr. and Committee Chairman Bob Goodlatte reiterated requirements of any meaningful negotiation as they continue to search for a compromise on EB-5 reform. The program has longstanding, well-documented fraud, abuse and national security concerns, and has drifted away from Congress’ original intent: spurring job creation in rural and economically depressed areas.
|Dean of the U.S. House|
John Conyers, Jr.
“Just a few weeks ago, we were encouraged by a reasonable proposal offered by IIUSA, the nation’s largest EB-5 industry trade association, containing significant reforms to the program. The proposal was a good faith effort to address our concerns and provide long-term stability to the program, and could have served as a basis for reform negotiations.
“As we have in the past, we remain willing to work with our colleagues and industry groups to produce meaningful reform. This must include strong transparency and anti-fraud measures, meaningful investment differentials, adjustments of the investment amounts to appropriately account for inflation, adequate set asides for both rural and urban distressed areas, and an end to the program’s abusive gerrymandering practices.”
In a recent letter, below, to congressional leadership, the lawmakers, along with Senate Judiciary Committee Ranking Member Dianne Feinstein, stated that the program should expire absent these reforms.