USCIS Proposes Major EB-5 Rule to Implement Integrity Reforms

Key Point  

• The Department of Homeland Security has proposed a sweeping overhaul of EB-5 regulations to implement the EB-5 Reform and Integrity Act of 2022. 

EB-5 Integrity Rule Expanding Oversight 

The Department of Homeland Security (DHS) has published a proposed rule that would formally implement the EB-5 Reform and Integrity Act of 2022 (RIA), codifying significant program integrity, fraud prevention and national security measures across the EB-5 Immigrant Investor Program. 

The proposal represents the most comprehensive regulatory update to the EB-5 program in years and would substantially affect regional centers, project sponsors, promoters and immigrant investors. Public comments are due by August 31, 2026.

What Would Change?

The proposed rule would align USCIS regulations with the reforms enacted by the EB-5 Reform and Integrity Act of 2022 and establish a comprehensive compliance framework for all participants in the EB-5 ecosystem. Key provisions include: 

• Enhanced anti-fraud and national security safeguards 
• Expanded USCIS audit and enforcement authority 
• Stricter regional center oversight requirements 
• New promoter registration and disclosure obligations 
• Clarified investment, job-creation and capital source requirements 
• Formal investor protections following regional center terminations or project debarments 
• Revised procedures for petition adjudications, amendments and removals of conditions 

Increased Scrutiny on Regional Centers and Project Sponsors 

A major focus of the proposal is strengthening oversight of regional centers and related entities. 

Under the proposed framework, regional centers would be subject to: 

• Mandatory annual reporting requirements 
• Expanded recordkeeping obligations 
• Compliance monitoring and internal control standards 
• USCIS audits at least every five years 
• Site visits and project inspections 
• Ongoing eligibility reviews and Integrity Fund fee requirements 

USCIS would also continue requiring background checks and bona fide reviews of individuals involved with regional centers, new commercial enterprises (NCEs) and job-creating entities (JCEs). Individuals with disqualifying conduct could face suspension, debarment or permanent exclusion from the program. 

Expanded Enforcement Authority 

The proposed regulation would give USCIS broader authority to take action where public safety, national security, fraud or misuse concerns arise. 

USCIS would be authorized to: 

• Deny or revoke EB-5 petitions and benefits 
• Suspend or terminate regional centers 
• Debar NCEs, JCEs, promoters and other participants 
• Issue monetary penalties 
• Permanently bar individuals and entities that engage in fraud, criminal misuse or intentional material misrepresentation from future participation in the program 

Notably, the proposal would clarify USCIS authority to take action when benefits are linked to fraud, deceit, criminal misuse or national security concerns, even where those issues are discovered after an approval has been granted. 

Investment Thresholds Remain Consistent with the RIA 

The rule would codify the current EB-5 investment minimums established by the 2022 legislation: 

• $1,050,000 for standard EB-5 investments
• $800,000 for investments in Targeted Employment Areas (TEAs) and qualifying infrastructure projects
• $1,400,000 for investments in newly defined high-employment areas
• The proposal also confirms that investment thresholds will be adjusted for inflation beginning in 2027 and every five years thereafter. 

New Job Creation and Capital Requirements 

USCIS is proposing additional clarity around how investors can demonstrate compliance with EB-5 requirements. 

The rule would: 

• Maintain the requirement to create at least 10 qualifying jobs per investor
• Define direct and indirect jobs more clearly
• Limit reliance on indirect job creation methodologies
• Restrict certain construction-related job calculations
• Eliminate the use of jobs created through bridge financing that is later repaid with EB-5 capital as qualifying job creation evidence 

The proposal also reinforces source-of-funds requirements by requiring detailed documentation of both the lawful source and path of investment capital. Digital assets may be used as a source of funds if investors can adequately document ownership, lawfulness, and conversion into qualifying capital. 

New Requirements for Promoters 

The proposed rule would formalize registration requirements for direct and third-party promoters involved in EB-5 offerings. 

Promoters would be required to: 

• Register with USCIS 
• Disclose compensation arrangements 
• Maintain written agreements with EB-5 entities 
• Comply with anti-fraud requirements 
• Retain records related to promotional activities 

Promoters that fail to comply could face suspension or debarment from the program. Regional centers would also be required to discontinue relationships with barred promoters. 

Good-Faith Investor Protections Preserved 

One of the most significant investor-focused aspects of the proposal is the implementation of statutory protections for good-faith investors. 

If a regional center is terminated or an associated NCE or JCE is debarred, qualifying investors may be able to: 

• Retain their priority date 
• Amend their petition 
• Associate with a new regional center 
• Reinvest in a qualifying project without automatically losing eligibility 

Investors would generally receive a 180-day window to take corrective action following notice of termination or debarment.

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