US proposes 33% hike in EB-5 investment threshold for high-unemployment areas to $1.4 million

A growing number of Indian H-1B visa holders are seeking US permanent residency through the investment-linked EB-5 immigrant investor program. Most EB-5 investments are made through Regional Centres, which pool investor funds into large development projects. The surge in interest is driven not only by the prospect of greater certainty over their immigration status but also by a grandfathering provision that expires in Sept 2026.Against this backdrop, a recent proposal by the US Department of Homeland Security (DHS) to raise the minimum investment for projects in high-employment areas by 33% to $1.4 million, from the current $1.05 million, is likely to affect only prospective investors who have not yet initiated the EB-5 process.EB-5 investors must also create at least 10 full-time jobs for US workers. Under the DHS proposal, the minimum investment for projects located in Targeted Employment Areas (TEAs)—which include rural and high-unemployment locations—as well as qualifying infrastructure projects, would remain unchanged at $800,000. Since the overwhelming majority of Indian EB-5 investors invest through TEA Regional Centre projects, many may continue to qualify under the lower investment threshold if the proposal is finalised.

“For most prospective EB-5 investors, particularly those investing through Regional Centres in targeted employment areas, the proposal does not alter the $800,000 investment threshold. Instead, it strengthens regulatory oversight and provides greater clarity on how the program will operate,” Mitch Wexler, senior counsel at Fragomen, a global immigration law firm, told TOI.Although the EB-5 Regional Centre Program has been authorized until Sept 30, 2027, its long-term future remains uncertain as Congress will need to extend the program beyond that date. Immigration attorneys point out that under the EB-5 Reform and Integrity Act (RIA) of 2022, investors who file their EB-5 investor petition on or before Sept 30, 2026, are protected by the Act’s grandfathering provision, ensuring that the remain on track for an investment linked green card even if the Regional Centre Program subsequently lapses.If the DHS proposal is finalised, investors who file before the revised investment thresholds take effect would generally remain subject to the current investment amounts. Immigration attorneys say relatively few investors may ultimately be affected because many are already rushing to file before the Sept 30, 2026 grandfathering deadline.The proposed rule largely codifies provisions that Congress enacted through the RIA. It also strengthens oversight of Regional Centres by expanding audit powers, introducing more stringent compliance obligations, requiring biometrics for certain applicants and Regional Centre personnel, and tightening rules governing promoters and other parties involved in marketing EB-5 investments. The proposal has been published for public comment for 60 days, following which DHS will review the feedback before issuing a final rule.