Keep the Gold Card price where it separates choices
There is a simple design principle at play. If the new Gold Card costs about one million dollars it will sit on top of the existing EB-5 program and erase the reason EB-5 exists. Make the Gold Card expensive enough and it becomes an option for the ultra rich who want residency without running a business. Make it too cheap and applicants will simply write a check to Washington instead of investing in American projects that hire people and pay taxes. Policy should create distinct pathways, not a single checkout line to residency.
What EB-5 actually delivers for America
EB-5 is not a handout. Foreign investors put money into U.S. projects and must create jobs to qualify. The capital goes into real estate, factories, infrastructure and other ventures that hire Americans. According to figures often cited by supporters, EB-5 produced tens of billions in investment over recent years, supported millions of jobs and generated large sums in wages and GDP. That is private capital doing public good without federal spending. If you like projects that produce workers, wages and tax receipts, EB-5 checks those boxes.
Why a one million dollar buyout would hollow out EB-5
If residency can be bought for roughly the same price as an EB-5 investment many applicants will choose the easiest path. They will send money to the federal ledger and move on. That is not investing in communities. It is clearing a bureaucratic toll booth with cash. The result would be fewer developments, fewer jobs and less local activity. Washington would book a one time payment and the long term flow of private capital into towns and cities would slow down or stop.
Money that goes into projects keeps working
An EB-5 investor does not simply pay for a visa and vanish. Their capital builds or expands businesses that hire people, spread wages across communities and create recurring tax revenue. Those businesses can grow, pay more taxes and trigger additional private investment. That ripple effect is how a single dollar of private capital can turn into much more economic activity. Turning that capital into a one time federal payment loses that multiplier effect and delivers a smaller net benefit for ordinary Americans.
Think national debt but do not forget jobs
There is a valid debate about using revenue to reduce the national debt. If Congress wants to use some funds for that purpose it is a choice worth considering. But swapping EB-5 capital for federal receipts is a trade that favors a short term ledger entry over long term job creation. Debt reduction is one objective. Growing payrolls and local tax bases is another. Good policy should aim for both when possible, not force a choice that sacrifices workers and communities for a single lump sum payment.
EB-5 is funded by investors, not taxpayers
EB-5 money is private money. That means the federal government does not have to spend taxpayer dollars to get the jobs and projects it produces. That is a rare thing in modern Washington. Programs that leverage private capital to do public work deserve careful protection. If Congress made EB-5 permanent it would send a signal of stability that helps developers and local planners make long term investments. Stability matters when building factories, housing and infrastructure that take years to plan and complete.
Don’t confuse capital-importing visas with labor-importing visas
Not all visas are the same. EB-5 imports capital and creates jobs. Other visa programs can import labor and, in some cases, depress wages or discourage training of domestic workers. Policy should reward investment that increases opportunities for Americans. If lawmakers are serious about growing wages and protecting jobs they should expand pathways that bring capital and clamp down on abuses of programs that simply bring cheaper labor into the market.
Set policy so markets and workers both win
There is a straightforward fix. Keep EB-5 intact and expensive enough to keep the Gold Card distinct. Price the Gold Card high so it becomes an option for ultra wealthy applicants who want a shortcut. Preserve EB-5 so investors who will build businesses and hire Americans have a reliable path. That creates choice and keeps private capital working in communities instead of disappearing into a federal bank account. Good trade policy is about returns, not quick transactions.
WE’D LOVE TO HEAR YOUR THOUGHTS! PLEASE COMMENT BELOW.
Leave a Comment