The recent media reports on a possible “Golden Visa de Trump” program have raised many unanswered questions about investment immigration. While no details are known, apparently this initiative aims to replace the traditional Visa program for EB-5 investors.
The EB-5 investors’ visa program allows foreign investors to obtain permanent residence (Green Card) in the United States with an investment of USD minimum $ 1,050,000 and the creation of 10 or more jobs in an American company. Historically, Mexican investors have represented one of the most numerous groups of applicants of the EB-5 visa.
The differences between the EB-5 visa and Trump’s golden visa
The implementation of a new Golden Visa program or the reform of the EB-5 program is aligned with Trump’s efforts to focus immigration policy on the economic contribution instead of focusing on family ties or humanitarian needs.
With Trump’s golden visa, a foreign investor would pay the US government a fee of 5 million dollars in exchange for a residence card with which he can later get an American citizenship. There are some important differences between Trump’s golden visa and the EB-5 program. First, the amount of the investment is quintupple, from approximately 1 million dollars to 5 million dollars. Second, the EB-5 program requires that the investment be made in an American company that generates 10 jobs for US workers, while Trump’s golden visa requires a direct payment to the US government, avoiding the requirement to invest in an American company that guarantees job creation.
Legal restrictions
President Trump reported that he will replace that he will use an executive order to replace or significantly modify the EB-5 program, which doubts his legality. Any significant change implemented only through an executive order can face immediate legal challenges, which could generate uncertainty for the first investors.
The United States Constitution gives Congress the responsibility of creating and modifying immigration laws. The EB-5 program was created by Congress through the 1990 Immigration Law. Replace the EB-5 program with a new visa such as the “Trump Golden Visa” would require a new congregational legislation, which has not been done to date. Executive orders can determine how existing laws approved by Congress are implemented, but cannot create new immigration categories that conflict with the existing statutes.
The Trump administration has tried to change immigration laws through executive measures, with disparate results in the courts. Although Trump’s golden visa proposal could simplify the investment process since it eliminates the requirement of creating jobs, Mexican investors must be cautious, since this new program would have to overcome legal challenges to survive.
About the author:
*Jasmin Singh is an immigration lawyer, based in the United States, specialized in immigration laws.
LinkedIn: Jasmin Singh
The opinions expressed are only the responsibility of their authors and are completely independent of the position and the editorial line of Forbes Mexico.
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