One of the most discussed issues in the post-RIA EB-5 landscape is the discrepancy between two critical dates:
- Grandfathering deadline: September 30, 2026
- Program sunset date: September 30, 2027
This one-year gap has created understandable concern among investors, migration agents, and project sponsors. In Part 2 of our webinar-based blog series, we unpack what happened, why the dates differ, and what advocacy efforts are underway to correct it.
How the Grandfathering Gap Happened
When Congress passed the Reform and Integrity Act in 2022, it introduced a long-sought concept: once an investor files, they are protected—even during a future program lapse.
But as Aaron Grau explained during the webinar, the mismatch in dates was not intentional. Instead, it emerged from the tight legislative timeline that surrounded the passage of the RIA.
“If I had to bet, I’d say it was an error,” Aaron noted. “We were running out of time to get the bill passed, and revising the text wasn’t an option.”
Congressional staff were unwilling to reopen the bill, leaving the discrepancy intact.
Why the Fix Is Possible—and Likely
According to Aaron, aligning the dates is achievable:
- It would be a simple, one-digit statutory amendment: Changing “2026” to “2027” in the grandfathering provision.
- Policymakers already understand the issue: Once explained, Hill staffers recognize the lack of policy rationale for the mismatch.
- There is growing commitment to resolving it: Several congressional offices have expressed interest in championing the fix.
- It would likely be addressed in FY 2027 appropriations: That process unfolds in mid-2026—meaning the fix could occur close to the deadline but still take effect in time.
However, Aaron emphasized that this is not a technical correction. It is a substantive amendment, though small in scope.
What Investors Should Expect Between Now and 2026
While the timing may feel tight, the tone from IIUSA is cautiously optimistic. The industry has already begun laying the groundwork to ensure Congress understands the necessity of this fix.
What stakeholders can do now:
- Join IIUSA (regional centers, developers, attorneys)
- Engage in grassroots efforts led by the association
- Provide local connections to mayors and civic leaders who can support the economic impact message
- Stay informed on appropriations developments in 2026
“Political capital is essential,” Aaron emphasized. “The more unified the industry is, the stronger our voice.”
Why Aligning the Dates Matters
- Investor confidence: Uncertainty around deadlines may lead to a filing surge in 2026 unnecessarily.
- Program continuity: The gap creates a “lame duck” window that is contrary to congressional intent.
- Advocacy strategy: Fixing the date allows stakeholders to focus fully on long-term reauthorization in 2027.
- RIA policy integrity: The entire purpose of grandfathering is to protect investors from future lapses.
A mismatched deadline undercuts that purpose.
Key Takeaway: A Fix Is Within Reach
The message from IIUSA is clear: The 2026–2027 gap is solvable, and advocacy efforts are already underway. Investors should take comfort in the fact that the discrepancy was never policy-driven, and Congress appears receptive to aligning the deadline with the program’s sunset.
Stay tuned for Part 3 of our series, where we break down post-RIA filing trends and the surge of new EB-5 demand.
