Leahy & Grassley Introduce Legislation To Improve & Extend Job-Creating Foreign Investment Program

Press Release

Senate Judiciary Committee Ranking Member Patrick Leahy (D-Vt.) on Wednesday introduced bipartisan legislation to extend and significantly improve the job-creating immigrant investor visa program, known as EB-5, which is set to expire in September. Leahy introduced the bill with Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa).

The American Job Creation and Investment Promotion Reform Act would reauthorize the EB-5 Regional Center program for five years and provide an overhaul of reforms to improve the program's integrity. Since launching in 1993, the EB-5 Regional Center program has generated billions of dollars in capital investment and created tens of thousands of jobs across the country. Leahy said that although certain projects have experienced problems in recent years, it is worth fixing the EB-5 program as it has transformed local economies in impoverished areas as well as in rural states like Vermont.

Leahy said: "The EB-5 Regional Center program faces some challenges, but I have not seen any flaw inherent to the program that could not be remedied. And I have seen over the last two decades how the EB-5 program creates jobs and provides access to capital in communities in Vermont and throughout the country, all at no cost to American taxpayers. While our immigration system as a whole is broken, and only comprehensive reform will remedy its many injustices, reforming and reauthorizing the EB-5 Regional Center program warrants our immediate attention because the program is set to expire in a matter of months."

Grassley said: "The EB-5 regional center program was created to benefit American communities through investment and job creation. In many instances the program has helped combat a stagnant economy. At the same time, though, we've seen too many occasions where national security has been put at risk and job creation has taken a back seat. Our bill strengthens oversight, ensures greater accountability and transparency, discourages fraud, and provides a higher priority for national security. I'm pleased to work with Senator Leahy on these much needed reforms, which will be the basis for reauthorization."

Vermont's Regional Center has been a successful private-public partnership between the State of Vermont and an increasing number of Vermont businesses, bringing economic development and job growth to the state since 1997. Vermont's projects have drawn business and tourism to the state, fueling local economies and creating jobs.

The bipartisan Leahy-Grassley bill builds on the EB-5 amendment unanimously approved by the Judiciary Committee two years ago during consideration of comprehensive immigration reform. The bill bolsters the Department of Homeland Security's authorities to administer the program, and provides investors with greater protections and more information about their investments. It also increases transparency and oversight and provides DHS the ability to proactively investigate fraud, both in the United States and abroad, using a dedicated fund paid for by certain program participants. The bill would also raise the amount of investment required and help to restore the program to its original intent, by ensuring that much of the capital generated and jobs created occur in rural areas and areas with high unemployment.

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