Why in news?

US President Donald Trump introduced a new "gold card" immigration initiative, replacing the EB-5 visa program. For a $5 million investment, wealthy foreign investors can gain a path to U.S. citizenship and permanent residency.

The existing EB-5 program, established in 1990, requires a minimum investment of $1.05 million (or $800,000 in distressed areas) to create or preserve jobs.

It has faced criticism for fraud and misuse, including funding projects linked to Trump family businesses.

What’s in today’s article?

• EB-5 Visa Program
• Comparison: EB-5 vs. Gold Card
• Potential Benefits of the Gold Card Program
• Concerns Surrounding the Gold Card Program
• Challenges Ahead for the Gold Card Program
• Impact of Gold Card Program on Indian Investors

EB-5 Visa Program

• Established by the U.S. Congress in 1990, the EB-5 visa program aimed to boost the American economy through job creation and capital investment by foreign investors.
• Investment Requirements
  • The program grants green cards to immigrants who invest at least $1,050,000 or $800,000 in economically distressed areas, known as targeted employment areas.
• Capping
  • The EB-5 program was capped at 10,000 visas annually with 3,000 reserved for investments in high-unemployment areas.
• Criticism and Controversies
  • The program faced criticism for deviating from its intended purpose, with reports indicating that businesses and Trump family members used it to fund major property developments.
  • Calls for reform grew during Trump’s presidency.
• Renewal and Legal Challenges
  • The program was last renewed under President Joe Biden in 2022, with investment thresholds raised.
  • The Trump administration attempted to increase the minimum investment for targeted areas to $900,000 in 2019, but a federal judge overturned this decision in 2021.

Comparison: EB-5 vs. Gold Card

• EB-5 Program
  • Established in 1990 and managed by USCIS.
  • Grants Green Cards to foreign investors who invest at least $1.05 million ($800,000 in certain cases).
  • Requires the creation of at least 10 jobs for Americans.
• Gold Card Program
  • Likely does not require investment in American businesses or job creation.
  • Allows direct purchase of a Green Card for $5 million.
• Administration and Processing
  • United States Citizenship and Immigration Services (USCIS) is expected to regulate and issue Gold Cards.
  • Likely involvement of the Department of State and Department of Commerce.
  • Faster processing times anticipated to encourage participation.

Potential Benefits of the Gold Card Program

• Attracting Wealthy Investors
  • The straightforward residency pathway may encourage high-net-worth individuals to move to the U.S.
  • These investors could contribute to the economy through real estate, luxury markets, and business investments.
• Reducing Fraud Risks
  • The EB-5 program has faced allegations of fraud.
  • A direct, high-cost purchase model may help minimize misuse and regulatory loopholes.

Concerns Surrounding the Gold Card Program

• Citizenship for Sale
  • The program prioritizes wealth over merit, potentially disadvantaging skilled professionals.
  • It raises ethical and political concerns about fairness in immigration policy.
• Risk of Financial Misuse
  • Investment-based immigration programs can be exploited for money laundering and foreign influence.
  • Lack of strong regulatory oversight may increase these risks.
• No Economic Contribution Requirement
  • Unlike EB-5, the Gold Card does not mandate job creation or business investment.
  • Passive investors could gain residency without contributing to the U.S. economy.
• Historical Precedents and Policy Questions
  • A similar program in Canada was discontinued due to widespread misuse.
  • Key concerns remain: Should U.S. citizenship be available for purchase? Should immigration policy prioritize skills and economic contributions?

Challenges Ahead for the Gold Card Program

• Legislative Hurdles in Congress
  • Immigration policy changes require congressional approval.
  • While Republicans hold a majority, not all may support a program perceived as "selling" citizenship.
  • Democrats are expected to oppose the proposal.
• Potential Legal Challenges
  • Most visa-related legal issues arise from program administration rather than the policy itself.
  • It is uncertain what legal challenges the Gold Card may face.

Impact of Gold Card Program on Indian Investors

• In 2023, only 631 Indians obtained Green Cards through the EB-5 program.
• Given the $5 million (₹43 crore) price tag, the Gold Card may not be attractive to many Indian investors.
• Impact on applicants from other categories
  • Over a million Indians are among those waiting for green cards in the U.S., according to US government data.
  • In employment-based categories, the backlog for Indian applicants is projected to reach 2.19 million by 2030.
  • Any new category will add to their waiting period.