As January 20th approaches and the Trump administration draws to a close, Eb-5 investors may be wondering what effects, if any, the incoming Biden administration will have on the EB-5 program. However, examining Biden’s record as a legislator and plans from his Presidential campaign reveals investors have nothing to fear.
Interestingly, Joe Biden had a hand in the creation of the EB-5 program. The EB-5 program was originally formed in 1990 through the passage of the Immigration Act of 1990. At the time, Joe Biden was a United States Senator from Delaware, and was one of 81 Senators who voted to pass the Immigration Act of 1990.
During the Obama Presidency, when Joe Biden served as the Vice President, the Obama administration spoke positively about the EB-5 Regional Center program, noting the benefits the EB-5 Regional Center program provided to U.S. national priorities, including job creation and development in economically depressed and rural areas. However, the administration failed to deliver on permanent reauthorization of the Regional Center program and on needed integrity and anti-fraud reforms.
How Will the Biden Administration Affect the EB-5 Program?
While Joe Biden has not recently spoken out in favor of the EB-5 Regional Center program, a review of his website will give insight into how the incoming Biden administration will prioritize the EB-5 Regional Center program:
- Modernizing America’s Immigration System. According to his website, “Biden will immediately begin working with Congress to modernize our system […] growing our economy and expanding economic opportunity across the country by improving and increasing opportunities for legal immigration […].”
- Welcoming Immigrants. The Biden plan notes, “[i]mmigrants bring tremendous economic, cultural, and social value to their new communities. Even in cities hit hard by the loss of manufacturing jobs, immigrants are a key driver of entrepreneurship and population growth.”
- Economic Impact. The Biden plan further states, “[f]or generations, immigrants have fortified our most valuable competitive advantage–our spirit of innovation and entrepreneurship. Research suggests that ‘the total annual contribution of foreign-born workers is roughly $2 trillion.’ Key sectors of the U.S. economy, from agriculture to technology, rely on immigration. Working-age immigrants keep our economy growing, our communities thriving, and country moving forward.”
The EB-5 Regional Center program stimulates the U.S. economy by adding jobs and is a premier source of foreign direct investment with no cost to the U.S. taxpayer. It aligns with the incoming Biden administration’s stated goals for economic development and its ‘Build Back Better’ motto.
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