November 11, 2019

November 11, 2019

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U.S. Senator Paul Seeks to Overturn Recent Obama-Era EB-5 Regulations

According to multiple media sources and independently confirmed, last week U.S. Senator Rand Paul (R-KY) circulated a “Dear Colleague” letter seeking co-sponsors to a process called the Congressional Review Act (CRA) to negate the recently proposed Obama-era EB-5 regulations.

The CRA provides Congress with a 60-day window to seek sufficient support – here, 30 senators – on a Resolution of Disapproval requiring simple majority passage in both bodies, and presidential signature to negate the regulations.

According to EB-5Investors.com, a huge proponent of the EB-5 Program, Sen. Paul is seeking to stop the EB-5 modernization regulation from increasing the EB-5 minimum investment amount in targeted employment areas from $500,000 to $900,000, and the EB-5 minimum investment amount in non-targeted employment areas from $1 million to $1.8 million. He also hopes to stop the regulation from taking away, or at the very least, restricting states’ abilities to designate targeted employment areas, the blog notes.

If the new rule were to go into effect, Sen. Paul said, “…this rule may undermine the very purpose of the program, which is to create jobs and grow the economy.” This is because raising the minimum investment amount could soon make many foreign investors ineligible for the program.

If fewer foreign investors qualify for the EB-5 Program, it could mean less foreign investment in the U.S. This could have a significant impact on the U.S. economy.

The Congress will return from recess in September. We expect intense end-of-year fiscal negotiations that will include extension of the EB-5 program, Sen. Paul’s efforts, and other attempts to provide for more thoughtful legislated reforms.

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About this Author

Robert Maples, Greenberg Traurig Law Firm, Northern Virginia, Washington DC, Government Policy
Director

Robert Y. Maples is experienced in the Washington, D.C. federal, state and public affairs arenas. He has also been an advocate for building pragmatic alliances to resolve major social issues and has pioneered strategies for addressing complex public affairs crises in collaborative versus confrontational contexts. He continues his advocacy of pragmatic alliances in furtherance of client/government collaborations among the Congress and federal agencies, and serves as state counsel on complex client public policy matters. He is experienced in complex problem solving in...

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