Comment: Who Is Delaying Reauthorization

It is NOT true that ALL of the EB5 industry is naive about the politics of EB5 reauthorization in the Senate - our information and analysis thereof reveals that only 96% of the EB5 industry is naive. These 96% are naive because they are falling for the deliberate strategy of the other 4% by drinking the kool-aid peddled by the 4%. 

The 4% driving the industry strategy are convinced that Grassley-Leahy would be the end of the road for their EB5 dreams. About 2% believe RC reauthorization through Grassley-Leahy would be a long-term dead-end, when USCIS inevitably resurrects the November 2019 modernization regulations, and forces them out of the EB5 market. The other 2% believe that Grassley-Leahy would be an immediate death to them, since they cannot comply with Grassley-Leahy at all. Both components of the 4% are using sophisticated decoys like the Industry Consensus language (which they know has no chance of passing) to stop any movement of Grassley-Leahy at any cost. 

Why is the delay of reauthorization in the interest of 4% of RCs? Because most political pundits expect a massive Republican victory at the 2022 elections with Republicans regaining control of both chambers of Congress. This would mean getting to negotiate with Republican heads of committees rather than Democratic. As an aside, an added benefit is that Sen Leahy is not running for reelection, so will be gone–breaking the close bipartisan cooperation between Senators Grassley and Leahy shaping EB5. The 4% hope (likely forlorn) is that they can obtain a much better deal from Congress in 2023.

To get a sense of the political power wielded by these 4% of RC players, it appears that two or more RCs are spending $100,000 to $250,000 per month EACH to lobby Congress. It is not a surprise that knowing that their very existence is at stake and with their deep pockets, they are doing what they can to protect their own interests. In the repeatedly delayed RC reauthorization, we are seeing the effects of political influence that can be purchased with gobs of money. (To the best of our knowledge no RC in the remaining 96% of RCs is spending more than $15,000 per month, hence these 96% become vulnerable to the kool-aid peddled by the 4%.)

The strategy of delay is well thought out, cynical, expensive and produces painful collateral damage to the rest of the EB5 industry/EB5 investors. 

  • The strategy of delay is not a knee-jerk reaction, nor a quick and dirty initiative - it is well gamed, carefully put together, masterfully orchestrated and, so far, fabulously successful.
  • The folks behind the strategy of delay are fully aware that they are playing a losing hand, since they know the reality of where the votes are on the Senate floor, and since USCIS has already expressed its inclination to banish urban RCs from future EB5 monies. Instead of losing gracefully, and engaging in other business pursuits, they are instead retreating inches at a time following a scorched-earth strategy.
  • This strategy of delay is not cheap, millions of dollars have been spent so far by those to whom Grassley-Leahy is a threat, and millions more are at the ready - since these millions are merely a drop in the bucket compared to their EB5 profits, past and future.
  • EB5 investors, together with the majority of RCs, and even the entire EB5 ecosystem, are all just pawns in the game of delay delay delay - the fact that this strategy of delay is destroying careers/lives and personal/corporate futures is viewed as an acceptable side effect by the folks pulling the strings.

Will these folks - the 4% of RCs - succeed in delaying reauthorization into 2023? We suspect not because: 

  • There is considerable support in the Senate for the Grassley-Leahy bill, so that bill will be the basis of anything that eventually passes in Congress on EB5. 
  • The Grassley-Leahy bill is open to small tweaks to accommodate many interests.
  • There are multiple possible vehicles for enacting Grassley-Leahy into law, including DHS appropriations.

RC reauthorization will likely occur in Q2/Q3 2022. 

Stay tuned to ILW for the latest news and analysis of the RC reauthorization drama.

Article: The EB-5 Regional Center Program Should Stay Expired as a Better Alternative Already Exists by Kurt Reuss

Article: White House Announcement: Biden-Harris Administration Actions to Attract STEM Talent by David H. Nachman, Esq., Ludka Zimovcak, Esq., Snehal Batra, Esq. and Samantha Chasworth, Esq.

Blogging: Biden Makes It Easier for STEM Professionals to Get Opt, Work Visas & Green Cards by Carl Shusterman

News: USCIS Provides Clarifying Guidance for O-1 Petitions With a Focus on STEM Fields

Focus: The EB-5 Book -- Inventory Clearance Sale 75% Off

The EB-5 Book; Editors: Matt Gordon and Sarah A. Schroeder

  • Specific focus on Enforcement and Compliance.
  • Articles by Shae Armstrong, Jeanne Calderon, Michael T. Clark, Laura Danielson, Michael Dunn, L. Batya Schwartz Ehrens, Gary Friedland, Robert P. Gaffney, Adam Gale, Steve Ganis, Sherman Golden, Douglas Hauer, Jennifer Hermansky (Jen), Parisa K. Karaahmet, Mark Katzoff, Lily Li, Brandon Meyer, John Neill, Angelo A. Paparelli, Chun Yun ("Elizabeth") Peng, John Roth, Paul Ruby, Reid Thomas, Robert S. Winner, and Ben Zou.

Buy Now! Online

Headline: Justice Department Settles with Insurance Agency to Resolve Immigration-Related Discrimination Claims Click here
Headline: My Turn: Immigration: Law and limits matter Click here
Headline: 'Avalanche' of recent immigration cases adds to record U.S. backlog, report finds Click here
Headline: Biden Administration Announces Expansion of Immigration Policies to Benefit STEM Students, Scholars and Researchers Click here
Headline: Is Biden Shifting on His Immigration Goals, or Doubling Down? Click here

Immigration Business Plan
ImmigrationBusinessPlan.com has been drafting immigration business plans daily exclusively to support E-2, L-1, EB-5 visas since 2004. What sets us apart is the fact we are a boutique firm and not a factory. Given our strong expertise in U.S. business immigration, we even draft part of RFE letters for law firms. We are storytellers. U.S. business immigration is our subject. Our business plan is our voice. Our mission is to pave the way for your clients' visa approval. Supporting Visa Applicants & Lawyers Nationwide for Over A Decade. Find out more: Call us at 888-278-7775, Email us at: info@ImmigrationBusinessPlan.com Visit us at ImmigrationBusinessPlan.com

Letters of the Week: Aton

ComingsNGoings: Submit Your Announcement
If you have a professional announcement such as: New Position, Honors And Awards, Mergers & Acquisitions, New Office Address, New Appointment, New Associate, New Attorney, New Partner, that you wish to share with the Immigration Daily community, send your professional announcement to: editor@ilw.com comingsNgoings announcements is a free service


An Important disclaimer! The information provided on this page is not legal advice. Transmission of this information is not intended to create, and receipt by you does not constitute, an attorney-client relationship. Readers must not act upon any information without first seeking advice from a qualified attorney. Copyright 1995-2017 American Immigration LLC, ILW.COM. Send correspondence and articles to editor@ilw.com. Letters and articles may be edited and may be published and otherwise used in any medium. The views expressed in letters and articles do not necessarily represent the views of ILW.COM.
Publisher: Sam Udani ISSN: 1930-062X
Advisory Board: Jason Dzubow, Rami Fakhoury, Matthew Kolken, Chris Musillo, Lory Rosenberg, Greg Siskind, Joel Stewart, Margaret Wong
    Posting comments is disabled.

    Immigration Daily

    Archives

    Processing times

    Immigration forms

    Discussion board

    Resources

    Blogs

    Twitter feed

    Immigrant Nation

    Attorney2Attorney

    CLE Workshops

    Immigration books

    Advertise on ILW

    EB-5

    移民日报

    About ILW.COM

    Connect to us

    Questions/Comments

    SUBSCRIBE

    Immigration Daily