US President Donald Trump had removed another traditional US policy by announcing a replacement of EB-5s visas with what he calls a “gold card” visa, ending the 35-year-old visa.
In 1990, US congress created EB-5s to generate foreign investment by allowing people to become permanent US citizens if they invest about $1 million in a company that has 10 employees or more.
However, Trump claimed that this gold card will push those who receive the golden card to spend more money on purchasing and paying taxes, while companies will hire more employees.
Commerce Secretary Howard Lutnick also stated that by raising the price of admission, the rate of fraud that is often seen in EB-5s will decrease.
According to the Homeland Security Department, approximately 8,000 people have become US citizens due to these EB-5s during the 12-month period ending on September 30, 2022.
However, the Congressional Research Service reported that in 2021, many investors were likely to commit fraud, including earning funds illegally, to obtain these visas.
Although Trump did not mention the requirements for job creation, he did recommend the government to sell 10 million “gold cards” to reduce the deficit.
He stated that this card will motivate wealthy individuals to invest handsomely to get talented people into the US.
Furthermore, he also stated this card would require congressional approval to determine the citizenship’s qualification.
