Forbes recently ran a story on the controversial EB-5 program titled “Here’s One Immigration Policy that Should Withstand President Donald Trump.” The EB-5 program enables wealthy foreigners to obtain lawful permanent residence for themselves, and their immediate family members, by “investing” $500,000 or more in a U.S. based development project. Enacted by Congress in 1990, the program was intended to generate jobs for U.S. workers and attract investment funds to the United States.
Advocates of the program tout it as a capital-raising miracle that carried the U.S. through the 2008-2009 financial crises. But the program has been plagued by allegations of fraud and abuse. Nevertheless, Forbes dismisses these accusations stating, “There has [sic]been allegations of fraud in the system…. Still, to say that the EB-5 program is loaded with money laundering and scandal is far off the mark. ”
Actually, it’s Forbes that is far off the mark. The program has not been short on scandal. The Department of Homeland Security’s Office of the Inspector General (DHS OIG) and the Government Accountability Office (GAO) have issued reports criticizing USCIS for lax security procedures and failing to provide adjudicators with the information needed to detect high risk cases. DHS OIG investigated former USCIS Director, now Deputy Secretary of Homeland Security, Alejandro Mayorkas for pressuring USCIS employees to approve questionable EB-5 cases. And U.S. Immigration and Customs Enforcement produced an internal memorandum (that was leaked to the press) expressing concern that the program could be exploited by criminals, money launderers and foreign intelligence services.
As for claims that EB-5 stimulates capital flow and creates jobs: In October of 2016, the GAO published a report finding that most funding in EB-5 projects comes from domestic capital sources, with only 29 percent coming from alien investors. And the Center for Immigration Studies examined EB-5 data for 2010 (the year with the largest number of EB-5 applicants) concluding that, “for every $100 of increased foreign investment that year, the EB-5 program contributed about one penny.” In addition, others have pointed out that there are no reliable statistics for the number of positions created by EB-5 projects, since the program relies on fuzzy job-counting methodologies.
EB-5 is a pilot program that was set to expire in September 2016 and requires further authorization to continue. Congress extended the program until after the new administration takes office. And the program’s fate remains unclear – Donald Trump (with his son-in-law Jared Kushner) has used EB-5 dollars to fund building projects and reportedly likes the concept. But if our new President is serious about securing our borders and making sure Washington doesn’t revert to business as usual, he will formally ask Congress to stop selling visas to wealthy foreigners. The risks outweigh the rewards. It’s time to drain the EB-5 swamp.
19 Comments
Matt the echoes of the Roman Empire can also create great countries through migration: United States of America
Except now we take in the welfare dependent, not the people who succeeded on their own hard work because they had no choice. And don’t try and say Americans take more welfare than foreign born and their US born children. Study after study shows differently.
Leland you are not different than a 0 place to the left of integers
Hahaha!!! Did you ever took math n your parents gave you some average common sense in your childhood hahahaha!!!!!!!!!!!!!!………So now there are more illegals than American S…. Go n take a cold shower u r delusional …But if courses Ian not telling u anything new….
Took= take. Bbbbb
Has FAIR submitted a response to Forbes — in the form of a Letter to the Editor, column, clarification, equal space etc? This should not go unchallenged.
Flying Syrian refugees and their families 7000 miles to the US, setting them up in housing, utilities, medical care, welfare, aren’t Americans so compassionate. If someone wants to come and invest heavily in the US, they are miles ahead of those 100,000+ refugees that Obama has imported at the taxpayer’s expense.
True but it doesn’t have to be one or the other. It can be neither. Lots of time they are not contributing significant money and as pointed out some of it is fraud. If something is worthwhile it will get financed.
Bring in Syrian refugees is not in America’s interest, they can not be vetted and possibly some are IRIS terrorist. The best way to handle the Syrian refugee issue is to establish safe zones in Jordan or Saudi Arabia. Like the Somali refugees, Syrians will not integrate into society with our culture and legal values. In fact, a recent Pew poll among Muslims in the United States revealed that they want Sharia law not the U.S. Constitution. This Syrian refugee program must be permanently prohibited. .
Matt O’ Brian, i’d love to hear your thoughts on the L1A program.
BFD! Most ALL countries do that. If you have money, you are welcomed with open arms. This has not changed since the civilization of man. Inviting people that make money into your country is superior to inviting illiterate uneducated peasants from third world countries ( then supporting them with taxpayers money) such as what Obama has done to America.
Is this the program where the foreigner buys an American hotel or a franchise restaurant, or a gas station and then pays no taxes for 7 years? And, then they sell it to a family member and continue for another 7 years tax free?
THIS IS UNFAIR COMPETITION TO AMERICANS WHO TRY TO RUN SUCH BUSINESSES AND WIND UP LOSING THEIR SHIRTS BECAUSE OF THE UNFAIRNESS.
END THE PROGRAM AND SEND THE PEOPLE BACK TO THEIR COUNTRY OF ORIGIN.
BTW, HIGHLY RECOMMEND THAT ALL AMERICANS BOYCOTT THESE BUSINESSES. SUPPORT AMERICANS.
I agree 100 an 50% , stop the program an send them all back to their home country, GAME OVER. they loose
This is a great insight into what is occurring. Just a way of getting other members of your family into the USA. We see it a great deal in Glendale, California. ) < :
Speaking of Too Much In-Sourcing With Way Too Many Green Cards Issued
Hey Toyota…..Trump don’t like your Mexican Manufacturing Planned, Cancel and move it to America or face 35% Tariffs.
Oh BTW, a $5/hr Mexican auto worker only saves about $1000 factory cost a unit over a Detroit $27/hr UAW worker per car made….Hades, the MASSIVE rebates the UAW Big Three offer off MSRP over Toyotas more than covers union American labor costs not transmitted at the dealer anyway….LOL ….also, made in America Toyotas in southern states don’t pay $27/hr either, these non-union jobs are more like $15/hr….
I have noticed that for a long time. Making those cars in Mexico doesn’t make prices any lower. A lot of people are doing 5 and even 6 year loans now when 3 or 4 used to be normal.
My 2014 Dodge Charger Was Proudly Designed By Cheap American Engineers [cheaper than Japanese or EU engineers]
I’m an engineer and could care less if they assemble ’em on the moon. No one cares about my profession, why should I care about theirs…LOL
I drove my 2011 six cylinder Charger 3 years until someone smashed it the parking lot….sold it for $600/yr devaluation or about $2000 less than I paid new [$22000]….but American cars don’t hold their value or a much better value for the money….LOL
Forbes is for more immigration any way they can get it. This is nothing more than citizenship for sale.
Actually what do you really do w/500k or even 1M or 2M? To create jobs . .