Recent Policy & Legal Developments

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The U.S. investment migration landscape has seen pivotal reforms in the last three years, with the EB-5 and E-2 programs both undergoing regulatory tightening, procedural modernization, and enhanced compliance oversight. These developments reflect a broader shift in U.S. immigration priorities toward integrity, economic contribution, and national security.

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The most transformative legislative update to the EB-5 program occurred with the EB-5 Reform and Integrity Act of 2022, which reauthorized the Regional Center Program through 2027 and introduced stringent new obligations for stakeholders. These include:

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• Increased minimum investment thresholds: $800,000 for Targeted Employment Areas (TEAs) and rural projects; $1,050,000 for standard investments.
  
• Enhanced due diligence, including third-party audits, fund administration oversight, and background checks for regional center operators and project principals.
  
• Reserved visa set-asides: 20% of annual EB-5 visas for rural investments, 10% for high-unemployment areas, and 2% for infrastructure projects.
  
  

Notably, the Act also permits concurrent filing of I-526 (immigrant petition) and I-485 (adjustment of status) for applicants already in the U.S., allowing early work and travel authorization—a major improvement for HNWIs on temporary visas.

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The E-2 program, though not subject to congressional reauthorization, has evolved through adjudication trends and policy guidance. In 2023, the Department of State updated the Foreign Affairs Manual to stress more stringent evaluations of “substantial investment,” business viability, and marginality concerns. The requirement for a clear “intent to depart” was also reemphasized, underscoring the nonimmigrant nature of the E-2.

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Additionally, E-2 access has narrowed due to changes in treaty interpretation and the 2023 Citizenship Transparency Policy, which requires E-2 applicants with recent second citizenships (e.g., via Grenada) to demonstrate substantial ties to the treaty country. This has introduced a de facto waiting period of 3 years in some cases, though litigation is ongoing.

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Together, these reforms reflect a recalibration of U.S. investment migration policy—preserving access for serious investors while curbing abuse and enhancing transparency.

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