In recent years, the EB-5 policy has undergone significant substantive changes. In March 2022, the United States Congress passed the “EB-5 Reform and Integrity Act” (RIA), which is the most important reform of the EB-5 immigrant investor program since its establishment in 1990.
Over the past twenty years, the EB-5 program has attracted a large amount of foreign investment, creating job opportunities in the United States. However, it has also exposed issues such as lack of oversight in regional centers, some projects being suspected of fraud, and inadequate protection of investors’ rights. The RIA was introduced against this background aiming to continue attracting overseas capital while strengthening project oversight, enhancing institutional transparency, and increasing legal protection for investors.
For applicants, the RIA not only reauthorized regional center projects but also changed visa quotas, application procedures, project oversight, and investor protection mechanisms, effectively reshaping the current EB-5 system.
Before the implementation of the RIA, EB-5 regional center projects relied on short-term extensions by Congress, causing applicants to worry about project sudden failures and creating market uncertainties.
After the RIA was implemented, regional center projects received multi-year authorization, ending the frequent extensions and providing more stable legal expectations for both applicants and investment projects.
The RIA established the Reserved Visa (Set-Aside Visas) system for EB-5 visas, some quotas of which are specifically reserved for rural areas, high unemployment areas, and infrastructure projects. This reform changed the situation where all EB-5 applicants previously had to queue together.
For applicants from certain countries and regions, the Reserved Visas mean shorter waiting times, making rural projects quickly become a focal point in the market.
Following RIA implementation, eligible applicants in the U.S. with available visa quotas can concurrently file for EB-5 applications, adjustment of status (I-485), work permits (EAD), and travel permits (Advance Parole).
This system is commonly known as Concurrent Filing, allowing eligible individuals to work, reside legally, and apply for international travel permits while waiting for case processing, becoming one of the most notable reforms under RIA.
The RIA established a stricter regulatory system than before, including enhanced information disclosure obligations for regional centers, regular audit systems, strengthened background checks, increased project transparency, and the establishment of the EB-5 Integrity Fund to support audits, investigations, and anti-fraud efforts.
While these measures cannot guarantee that all projects are risk-free, overall, they have raised the standard of the EB-5 market and enhanced investor protection.
The RIA added multiple investor protection measures, such as provisions for investors to potentially retain their application eligibility under certain conditions if a regional center loses its qualification. The law also increased penalties for non-compliant organizations and responsible individuals.
The reform philosophy is not only about regulating regional centers but also emphasizes maintaining integrity in operations and safeguarding the legitimate rights of investors.
After RIA implementation, a new concern for applicants arose – the Grandfathering clause. According to current law, investors who submit qualifying applications before September 30, 2026, may continue to receive legal protection under certain conditions, even if regional center project authorizations change in the future, making 2026 an important timeframe for many EB-5 applicants.
However, it is important to note that the Grandfathering clause does not guarantee approval or waive other statutory requirements for applicants. It protects cases that meet the requirements to continue being processed.
The RIA indeed improved the application environment for some applicants through reforms like reserved visas for rural projects, concurrent filing for adjustment of status, and long-term regional center authorizations, enhancing the stability of the system.
Although the RIA did not lower the fundamental legal requirements of EB-5, such as investment amount, source of funds verification, job creation requirements, and immigration agency scrutiny of application materials, it matured and standardized the EB-5 system rather than making it more relaxed.
The implementation of the 2022 “EB-5 Reform and Integrity Act” marks a new stage in the development of the U.S. EB-5 immigrant investor program. The significance of the RIA for applicants lies not only in the additions of rural projects, concurrent filings, or reserved visas but also in establishing a more stable, transparent, and regulated legal framework.
However, legal reforms do not eliminate investment risks. Selecting the right project, reviewing regional center backgrounds, keeping up with policy changes, and devising application strategies based on individual circumstances remain crucial factors in determining the success of EB-5 applications.
This article serves as a general overview of immigration laws and practical observations and does not constitute legal advice or specific legal recommendations for any case. The actual outcomes of cases depend on individual facts and applicable laws. For matters involving personal cases, consulting a qualified immigration lawyer is recommended.