Comment: EB5 Political Calculations

An Op-Ed last weekend in the New York Observer "Real Estate Developers’ Plea to Trump: Don’t Roll Out New EB-5 Regulation" by Brian Darling argues that it is in the political interest of the Trump administration to squash the upcoming EB5 regulation. Please find an analysis below.

Political Arguments Against the New EB5 Reg

Political Calculations Supporting the New EB5 Reg

This regulation kills jobs in New York, LA, Miami and other major urban centers

Those in the administration pushing the regulation know that the regulation changes the location of the jobs from affluent urban areas to rural areas. President Trump cannot hope to win New York or California—he is trying to appeal to Wisconsin and Iowa by moving jobs there.

The administration should be worried about angry voters who are upset about the President not keeping his promise to create American jobs

The angry voters that affect the President's reelection effort are rural voters in Wisconsin and Iowa who are suffering due to the trade wars. The administration sees using this EB5 regulation to move jobs to rural states as a way of keeping Mr. Trump's promise to create American jobs--for rural voters who will make or break his re-election efforts.

Additional investment of $1 Billion is a value to New York, Los Angeles and Miami

$1 Billion of investment has a massive impact on the economies of rural areas that Trump needs to win for his re-election.

This is an Obama era regulation; ergo, it must be stopped

The administration stopped all Obama era regulations except this one. This regulation was pushed forward deliberately because it will help re-elect President Trump.

EB-5 is a merit based immigration system

EB-5 continues to remain a merit based immigration system under the regulation


The administration is already in a full 2020 re-election mode and seems to be evaluating issues such as the decisions on the new EB5 regulation based on the above considerations.

Let us know your thoughts by writing to us at editor@ilw.com.

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News: When to File Your Adjustment of Status Application for Family-Sponsored or Employment-Based Preference Visas: August 2019

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