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December 9, 2011
Senators show enthusiasm for EB-5 regional center program; questions raised about level of investment, length of term; a skeptic vs. Sen. Leahy
Atlantic Yards Report
The EB-5 program of investment immigration--at least via its most popular incarnation, the regional center program--has been booming, with the number of regional centers, privately owned (mostly) investment pools set up to recruit immigrants seeking green cards, growing from some 35 to 200 in three years.
However, the regional center program is a pilot program, extended five times for 19 years, and set to expire at the end of September 2012. So Congress has begun considering making the program permanent, and the Senate Judiciary Committee 12/7/11 held a hearing on a bill (Creating American Jobs Through Foreign Capital Investment Act) sponsored by Chairman Patrick Leahy (D-VT) to do just that.
The only cosponsor so far is Sen. Chuck Schumer (D-NY), but, as at previous Congressional hearings, most legislators seemed positive about a program Leahy called “as much of a win-win program as one could think of.”
Two of the three witnesses program boosters, and the few Senators skeptical seemed more exercised by the rare intersection between EB-5 and illegal immigration than questions of fraud and enforcement.
Still, one Senator put it plainly, that the program is selling green cards.
And the program’s one prominent critic, David North of the (right-wing) Center for Immigration Studies got his due, suggesting that the U.S. scrap the regional center program, that it delivers results that have been poorly documented, and that Senators should not be seduced by positive anecdotes. At the least, he said, the minimum investment--which hasn’t been raised since 1993--should be increased.
Sen. Chuck Grassley (R-IA) offered some skepticism, suggesting that “we need to enact reforms to make the EB-5 regional center program worthy of its goals.”
“At the end of the day, one fact remains,” Grassley declared. “The program is simply a way for wealthy investors to buy a green card, not only for themselves but for their families. No skills or management experience is needed. One only needs to write a check... While taking a financial risk... is admirable, evidence suggests that it’s not doing enough to spur job creation.”
But he didn’t drill down very far.
As usual, however, Norman Oder drills down much farther. Click through for more.
Posted by eric at December 9, 2011 11:47 AM