From tightening the squeeze on issuing H-1B visas allowing highly skilled foreign workers into the country to the recent immigrant family separations issue, the Trump Administration has made its stand very clear on how it plans to save American jobs. Whether anyone agrees with it or not, some of the recent actions by the administration are a good indicator of the things to come.
The EB-5 visa program seems to be the next bone of contention. In a rare moment of bipartisan display, senators from both parties want the EB-5 overhauled or eliminated because of concerns around fraud and national security. EB-5 visa program offers wealthy foreign nationals to get legal residency status in the United States if they are willing to invest in projects that create jobs locally.
In a hearing on Tuesday, Judiciary Committee Chairman Chuck Grassley of Iowa got support from Democrats and Republicans in criticizing the EB-5 visa program aka the “Golden Ticket” allowing foreign nationals to reside in the U.S. provided they are willing to create at least 10 jobs and make an investment of $500,000 or more.
The EB-5 visa program was launched in 1990 with an eye to spur the economy, especially in rural corners of the country and low-income areas. This visa program is extremely popular with Chinese investors and several real estate developers have benefitted from the cash investments. EB-5 visas have a cap of 10,000 per year.
Chairman Grassley has argued that EB-5 program is riddled with instances of “fraud, corruption and threats to national security” and that he’s trying to get this program revamped but his efforts have been met with resistance by supporters of this program.
Some instances of U.S. nationals using the invested money for personal gains instead of job creation have come to light, reports Chairman Grassley. He even talked about how Iranian operatives had tried to misuse the program and instances where Chinese nationals were misled into investing in real-estate projects in the name of EB-5 visa program.
One of the top democrats of the Judiciary Committee, Senator Dianne Feinstein from California said it is unfair to sell visas to rich people and at the same time put curbs on others who are struggling to make it to the U.S. “It’s wrong to sell American citizenship,” she said. “The wealthy can cut to the front of the line. This on its face is fundamentally un-American.” Feinstein also argued on the lines that the EB-5 program has led to several instances of fraud.
During the hearing, L. Francis Cissna, USCIS Director, admitted to EB-5 fraud cases and called for improved vetting and on-site checks to eliminate the problem.
Under the EB-5 visa program, foreign investors can reside legally in America if they make an investment of $1 million into a commercial enterprise which ends up creating at least 10 jobs locally. This investment needs to be made in a “targeted employment area” i.e. in an area with low-income, high unemployment or a rural community. The minimum investment has now been lowered to $500,000.
The Kushner family used EB-5 funds to build the Trump Bay Street apartment tower in New Jersey, which opened in November 2016 right before Jared Kushner’s father-in-law, Donald Trump, was elected president. Last year, Kushner’s sister was criticized for mentioning the family’s Trump ties while pitching wealthy Chinese to get visas by investing in another Kushner apartment complex.
An example where this program has been misuses pertains to Jared Kushner, the son-in-law of US President Donald Trump. It is alleged that the Kushner family utilized EB-5 funds to build the Trump Bay Street apartment tower in New Jersey, before Trump’s election as the POTUS. Even in 2017, Kushner’s sister was criticized for pitching to the Chinese how they can get visas by investing in an apartment complex owned by the Kushner family. Subsequently, the U.S. Securities and Exchange Commission and federal prosecutors have issued subpoenas to Kushner Cos. requesting for details about these specific cases.