EB-5 investors will be glad to learn that another positive step was taken towards reauthorization of the EB-5 program yesterday, with the introduction of H.R. 2901 to the U.S. House of representatives.
The bill was introduced with bipartisan support from Representatives Greg Stanton (D-Arizona), and Brian Fitzpatrick (R-Pennsylvania). A companion to the EB-5 Reform and Integrity Act introduced in the US Senate last month, the bill aims to secure long-term reauthorization of the EB-5 program.
Beyond reauthorizing the EB-5 program through 2026, the bill would also introduce new measures designed to increase accountability and ensure trust between investors and Regional Centers.
The bill’s introduction was met with endorsements from non-profit industry trade association Invest in the USA (IIUSA) and The Coalition to Save and Create Jobs (CSCJ). IIUSA’s Executive Director, Aaron Grau, had this to say, “[o]n behalf of CSCJ, IIUSA, and its leadership, I am pleased to share our unanimous support of the introduction of House companion bill H.R. 2901, which comes on the heels of the recently introduced legislation by U.S. Senators Grassley and Leahy… For years, members of Congress and the EB-5 community have agreed that the Regional Center Program needs added integrity reforms to achieve long-term reauthorization and with less than 63 days to go before the current program expires. Time is of the essence to turn this bill into law now and lay the groundwork for more program improvements in the future.”
Noreen Hogan, President of CMB Regional Centers, one of the nation’s largest regional center operators, in response to news of the introduction of H.R. 2901, stated, “CMB has continued to voice our support for the EB-5 Reform and Integrity Act of 2021 (S.831) introduced by Senators Leahy and Grassley. We are equally supportive of, and excited to see, the introduction of its House of Representatives companion bill, HR. 2901 introduced by Representatives Stanton and Fitzpatrick. The introduction of the bill again demonstrates bipartisan support for the EB-5 Regional Center Program, which has proven to be a vital economic development and job creation tool for the U.S. economy. CMB has been an advocate for and welcomes the much needed reform and integrity measures included in both bills and looks forward to the passage of this legislation that will bring long-term reauthorization and stability to a program that will play a critical role in the recovery and growth of our economy.”
Rep. Greg Stanton touted the value of the EB-5 program, saying “I’ve seen firsthand how the EB-5 program can attract foreign investment and create new jobs. . . we are addressing vulnerabilities the EB-5 program faced in the past and including integrity measures so that it functions as Congress intended. The reauthorization of the EB-5 program is critical to our nation’s economic growth and I look forward to this bill becoming law.”
Rep. Fitzpatrick added, “[a]s a longtime proponent of the EB-5 Regional Center Program, I’ve seen firsthand how the program has been a powerful tool for our nation’s economic development. This bipartisan reauthorization represents Congress and the business community coming together to ensure communities across the country can continue to access capital for critical projects while increasing needed oversight and integrity measures to root out fraud and abuse. . . Both Rep. Stanton and I welcome IIUSA’s endorsement of this much-needed bipartisan bill and look forward to working together with our colleagues in the Senate to enact this bill into law.”
The EB-5 program was created in 1990 by congress to attract investments from foreign nationals who wish to immigrate to the United States. Those who can invest the required capital and demonstrate their investment created American jobs can receive an EB-5 visa and US green card. Funding from EB-5 investors has been an incredible boon to the US economy, bringing more than $41 billion for American businesses, and creating close to a million job opportunities for American workers.
The full text of HR 2901 can be found here.
A summary of the bill can be found here.