FREE Sign upLogin
Congress must reform the EB-5 cash-for-visas program

Congress must reform the EB-5 cash-for-visas program

EB-5 Visa, EB5 Visa, EB-5 Investment

One of the first new laws President Trump signed, an appropriations bill, contained a provision renewing the controversial EB-5 immigrant investor visa program.

Hours later, Nicole Kushner Meyer of the Kushner Cos. — the family-owned real estate development company that was, until very recently, run by Trump’s son-in-law and top adviser Jared Kushner — was urging wealthy investors in Beijing to consider putting $500,000 each into two luxury apartment towers the company is erecting in Jersey City.

The timing of these two incidents reeks of nepotism and crony capitalism. The entire episode should be scrutinized by the Office of Government Ethics.

It’s also squarely placed a spotlight on why the EB-5 program isn’t working. A bipartisan group of U.S. senators is studying ways to reform EB-5, which shouldn’t have been extended in its current form.

The EB-5 immigration program was established by Congress in 1990 to encourage foreign investment in the United States. It’s supposed to give wealthy foreigners a quick road to U.S. citizenship in exchange for subsidizing development in rural or blighted areas and creating American jobs.

In reality, the program has been riddled with fraud and abuse. Investors, overwhelmingly Chinese nationals, have to wait years for their visas, and their investment partnerships rarely power distressed developments or create the promised number of American jobs.

But the EB-5 program has proved to be an effective way to attract Chinese investment into luxury hotel and condominium projects. U.S. Sen. Dianne Feinstein, D-Calif., correctly noted that the program is a “stark conflict of interest for the Trump White House.”

That means Congress needs to speed up that study group — and pass a reform bill.


Source: http://www.sfchronicle.com/opinion/editorials/article/Congress-must-reform-the-EB-5-cash-for-visas-11133955.php

Mentions

States

  • New Jersey


Subscribe for News

Site Digest

Categories

Free eb5 consultation

Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.