We are aware of a recent announcement by President Trump of a plan to create a “Gold Card” at a cost of $5 million. At the moment we are unaware of any specific details of the proposed Gold Card program, but are providing our preliminary thoughts based on the limited information currently available.
The EB-5 program has been a cornerstone of U.S immigration since the 1990s. The EB-5 program has been an extremely important part of the U.S economy bringing in billions of dollars to States and counties annually. The localization of the infusion of these funds is an important consideration as to why the EB-5 program has been extremely popular with Congressional representation.
-The current incarnation of the EB-5 program under the RIA has provided some consistencies and safeguards to the point where it has significantly reduced the concerns of fraud that were prevalent in the earlier days of the program.
Despite President Trump’s announcement on February 25th to end the EB-5 program and convert it to a “Gold Card” Program, Trump cannot unilaterally end the Program. The EB-5 program was created by Congress, and only Congress may abolish it and/or establish a new immigrant investor program as a replacement. The U.S. Constitution, in Article I, § 8(4), grants Congress the power to establish a “uniform Rule of Naturalization.” The Supreme Court has upheld this notion. Therefore, any attempt by Trump to unilaterally change or create an existing immigration program will be met with legal action. Importantly, EB-5 investors who have invested, or plan to invest, before September 2026 will be protected from future lapses in the EB-5 program as defined by the RIA’s grandfathering clause.
Forecast for future:
It appears that Trump will be behind a restructuring of the EB-5 program. What he calls an “end to the EB-5 program” is likely going to result in the end to the EB-5 program as we know it today by name. It is my opinion that the EB-5 program will be rebranded under perhaps a new umbrella of The U.S. Investment Program. This new Program will then include the basic structure of the EB-5 program as we know it, and perhaps add an additional branch allowing for an investor to infuse a significant amount of capital into the U.S federal government with perhaps a guarantee of an expedite to U.S citizenship attached. There is certainly room for both options. From the brief information we have received from the Trump statement, it certainly appears that this Gold Card would be a donation to the Federal government. Which, by itself, is not a bad thing, but would require some significant Congressional support. This is clearly in contrast to the EB-5 program which requires an infusion of an investment that creates employment in the various congressional districts. Both programs have arguable merit, and it seems extremely likely that there is room for both programs.
For now, the best approach for existing EB-5 applicants as well as those considering EB-5 is to focus on the existing rules and laws that are in place and feel confident that there are Congressional policies in place that offer protection to EB5 investors.
