New proposed rules for EB5 visas were released today. Here’s a link 2025-19642.pdf and below is a summary.
If you have EB5 questions, please feel free to connect with us by phone or email- 206 292 5237 or info@watsonimmigrationlaw.com
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Here’s a summary of the proposed rule by the U.S. Citizenship and Immigration Services (USCIS) and Department of Homeland Security (DHS) titled “Employment-Based Immigrant Visa, Fifth Preference (EB-5) Fee Rule” (DHS Docket No. USCIS-2025-0139). Federal Register Public Inspection
Below I’ll highlight the main points and then pull out key details to be aware of.
Purpose & Major Provisions
- This is a Notice of Proposed Rulemaking under the EB-5 program (5th preference immigrant investor category). Federal Register Public Inspection+1
- DHS is proposing to adjust the fee schedule for the EB-5 program in order to:
- Align with the requirements of the EB‑5 Reform and Integrity Act of 2022 (hereafter “Reform Act”). Federal Register Public Inspection+1
- Provide USCIS sufficient resources to administer the EB-5 program, maintain integrity (fraud detection, audits, site visits), and support the investor-visa processing goals. Federal Register Public Inspection+1
- Major proposed changes include:
- Adjusting EB-5 program fees (for investor petitions, regional center applications, etc). Federal Register Public Inspection
- Establishing a new “technology fee” for the EB-5 program. Federal Register Public Inspection
- Codifying the EB-5 Integrity Fund fees and penalties (established by the Reform Act). Federal Register Public Inspection
- Establishing a new form: Form I-527 (Amendment to legacy Form I-526) for certain legacy investor petitions. Federal Register Public Inspection
- Clarifying how the derivatives (spouse/children) of investor applicants file their removal of conditions (Form I-829) when not included on the investor’s petition. Federal Register Public Inspection
Fee Schedule Changes
- The rule contains a table comparing current fees vs proposed fees for various EB-5 related forms. Federal Register Public Inspection
- Some examples:
- Form I-526 (Standalone Investor) and I-526E (Regional Center Investor) initial: Current $11,160 → Proposed $9,625 (−14%). Federal Register Public Inspection
- Form I-829 (Removal of Conditions) current $9,525 → proposed $7,860 (−17%). Federal Register Public Inspection
- Form I-956 (Regional Center Designation) initial: current $47,695 → proposed $28,895 (−39%). Federal Register Public Inspection
- New filing: Form I-527 has no current fee; proposed $8,000. Federal Register Public Inspection
- The technology fee: For I-526 / I-526E initial, an additional $95 technology fee is noted. Federal Register Public Inspection
- The proposed fee reductions suggest lower fees for many investors/applicants, though new fees and new forms mean some pay more (or new stakeholders pay). The reductions are shown as “% difference” in the table. Federal Register Public Inspection
Economic & Cost Impacts
- DHS estimates roughly 11,260 EB-5 program filings annually (about 10,805 current forms + ~457 new Form I-527) under the proposed schedule. Federal Register Public Inspection
- The average form fee (volume‐weighted) is estimated to decrease by about $2,259 (which is ~14.7% decrease) under the proposed schedule. Federal Register Public Inspection
- Over a 10‐year period, the monetized cost of compliance is estimated as about $42.1 million (undiscounted) or around $3.6 million annualized at 3 % discount. Federal Register Public Inspection
- Transfer payments (from applicants to DHS) are estimated at ~$830.7 million over 10 years, a reduction of ~$244.1 million from current levels. Federal Register Public Inspection
- DHS acknowledges many entities (regional centers, new commercial enterprises, job-creating entities) are likely “small entities” under the Regulatory Flexibility Act, so impacts on small businesses are discussed. Federal Register Public Inspection
Background / Legal Authority & Program Integrity
- The EB-5 program: originally established in 1990 to stimulate U.S. economic investment by immigrant investors; the regional center component dates to 1992. Federal Register Public Inspection
- The EB-5 Reform and Integrity Act of 2022 significantly reformed the EB-5 program: e.g., added statutory processing time goals, new investor/regional center rules, new integrity measures, new funding/fees mechanisms. Federal Register Public Inspection
- Legal authority for fee setting: DHS uses the Immigration and Nationality Act (INA) sections (e.g., 286(m) for USCIS fee authority) as well as the Reform Act’s specific fee study and processing time provisions. Federal Register Public Inspection
- On integrity: The Reform Act mandates audits of regional centers at least once every five years. USCIS outlines the fraud, national security, site‐visit and verification requirements it executes for EB-5. Federal Register Public Inspection
Fee-Setting Methodology & Approach
- USCIS conducted a fee‐study for EB-5 to project costs, volumes, completion/processing times and allocate program costs accordingly. Federal Register Public Inspection
- Major cost components: adjudication staff, supporting services, technology/IT, fraud prevention, site visits and verification, overhead, audits, program management. Federal Register Public Inspection
- The Reform Act directs fees to cover: (1) full recovery of costs of providing services; (2) cost of achieving the processing time goals; and (3) an equal amount to what other applicants (especially low/no-fee ones) pay to cover their cost share. Federal Register Public Inspection
- Interestingly: even though costs are rising, some proposed fees are lower than current ones because the prior fees included certain cost allocations; this rule omits some offsets (specifically cost for reduced/no‐fee benefit requests) which means proposed fees are lower despite higher cost base. Federal Register Public Inspection
Integrity Fund, Penalties & Technical Changes
- The Reform Act created an “EB-5 Integrity Fund” under INA section 203(b)(5)(J) (8 U.S.C. 1153(b)(5)(J)). Federal Register Public Inspection
- Funding mechanisms: Annual fee of $10,000 or $20,000 (depending on number of investors) paid by each designated regional center; $1,000 fee from each regional center petitioner with filing of Form I‐526E. The Secretary may increase these fees by regulation to ensure fund sufficiency. Federal Register Public Inspection
- Proposed penalties: If a regional center fails to pay by 30 days after due date → 10% penalty; by 60 days → 20% penalty; by 90 days → termination of regional center designation. Federal Register Public Inspection
- Technical clarifications: The rule defines how derivatives (spouses/children) file Form I-829 if not included in the investor’s petition; when investor is deceased; and the deadlines for separate filings. Federal Register Public Inspection
Public Participation & Process
- The rule invites public comments from interested parties; comments must reference DHS Docket No. USCIS-2025-0139 and be submitted via the Federal eRulemaking Portal. Federal Register Public Inspection
- Comments must be specific (reference portion of rule) and include data/information/authority supporting any recommended change. Federal Register Public Inspection
Why It Matters – Implications
- For prospective EB-5 investors: The reduced fees may lower the cost of petitioning (in some cases). But new fees (e.g., technology fee, Form I-527) may offset some of that.
- For regional centers: The reduction in designations/applicant fees is positive, but the integrity fund mandates and penalties increase compliance burden and cost/or risk of termination.
- For USCIS: The rule aims to provide a more sustainable funding model for EB-5 adjudications, integrity functions, and program oversight — especially as fraud/investor integrity has been an area of concern.
- For litigation/administrative risk: The “processing time” goals in the Reform Act (e.g., 240 days for I-526E, 120 days for TEA investments) remain aspirational; setting fees with those goals in mind may raise expectations. Federal Register Public Inspection
- For small entities/new commercial enterprises: Although the fee reductions help, there are new compliance burdens (especially for regional centers) and the rule acknowledges their status for the Regulatory Flexibility Act analysis.
Key Dates & Next Steps
- The “DATES” section: Comments must be submitted by 60 days after publication in the Federal Register. Federal Register Public Inspection
- The rule is scheduled to be published on October 23, 2025. Federal Register Public Inspection
- After comment period closes, DHS/USCIS will review and publish a final rule.
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