When Congress passed the EB-5 Reform and Integrity Act of 2022 (RIA), it marked the most comprehensive overhaul in the program’s 30-year history. Two years later, how well has it worked — and where does the industry stand today?
During CanAm’s recent EB-5 Advocacy Webinar, CanAm CEO Tom Rosenfeld joined immigration law leaders Ira Kurzban, Ron Klasko, and Enrique González to reflect on what’s changed since the RIA and what challenges remain. The consensus: EB-5 is delivering on its promise — but continued advocacy and prudence are essential.
EB-5 Has Achieved What Congress Intended
“We’ve been successful in meeting the policy goals of the Reform Act,” Tom Rosenfeld began. “There’s been a 1,500% increase in investment in rural areas. That’s exactly what Senators Grassley and Leahy wanted — and it’s meaningful.”
That single data point captures a profound shift in EB-5’s impact. For decades, most EB-5 capital flowed into large urban developments. Today, projects in rural and high-unemployment areas — from broadband infrastructure to advanced manufacturing and renewable energy — are leading the way.
This transformation is precisely what Congress sought: directing private investment to communities that need it most, creating jobs without taxpayer expense, and strengthening bipartisan support for the program.
“The idea that you can create U.S. jobs at no cost to taxpayers has always been EB-5’s strength,” Rosenfeld noted. “That message resonates more than ever in today’s economy.”
An Economic Environment That Demands Prudence
Even with this success, Rosenfeld emphasized that the current market environment poses unique challenges. “Today’s economics remind me of 2008 or 2009 — maybe not that terrible, but pretty close,” he observed.
High interest rates, inflation, and liquidity pressures have made traditional capital harder to access, driving new demand for EB-5 financing. Developers and sponsors increasingly look to EB-5 as a reliable, long-term capital source — especially for projects that can’t find funding through conventional means.
That dynamic is both an opportunity and a warning. “With that huge demand comes risk,” Rosenfeld said. “You have to do deals that make sense on their own. Strong sponsors. Real equity. Conservative projections. This isn’t a time not to do deals — it’s a time to be cautious and realistic.”
Policy Progress — and Remaining Hurdles
The panelists agreed that the RIA has brought stability and integrity to EB-5, while introducing new complexities.
- Grandfathering and Sunset Dates: The RIA reauthorized EB-5 through September 30, 2027, but its grandfathering protections expire one year earlier, in September 2026. Rosenfeld called this mismatch “one of the biggest technical issues we must fix.”
- Processing Backlogs: While rural investors benefit from priority processing, inconsistent adjudications and visa retrogression continue to frustrate applicants from high-demand countries.
- Agency Consistency: As Ron Klasko noted, USCIS must improve predictability. “We’re seeing the agency approve source-of-funds at I-526 and later deny it at I-829 — that’s inconsistent and wrong,” he said.
Despite these challenges, the RIA’s track record has been positive. “EB-5 is much closer today to what Congress envisioned in 1990,” Kurzban observed. “We’re seeing job creation in areas that genuinely need it — that’s what the program was meant to do.”
A Platform for Long-Term Strength
From bipartisan congressional support to record rural demand, the RIA has positioned EB-5 for a new era of legitimacy. But Rosenfeld and his fellow panelists cautioned that progress shouldn’t breed complacency.
“We can’t take stability for granted,” Rosenfeld said. “We need to keep showing lawmakers that EB-5 works — that it’s efficient, credible, and essential for economic development.”
That means continued data-driven advocacy, vigilance around compliance, and careful project selection — exactly the approach that has guided CanAm since the program’s inception.
Key Takeaways for Investors
- RIA is working. Rural EB-5 investment has surged more than 1,500%, achieving the law’s core policy goal.
- Economic headwinds demand diligence. High rates and tight liquidity make EB-5 capital more important — and careful deal selection more critical — than ever.
- Fix the sunset gap. Aligning the 2026 grandfathering deadline with the 2027 program reauthorization is a top advocacy priority.
- The future is strong. With bipartisan support and a proven impact record, EB-5 remains one of America’s most effective job-creation tools.
