- President Trump announced plans to replace the EB-5 visa program with a new $5M “gold card” for foreign investors seeking US residency.
- The administration claims the transition can happen without congressional approval, but legal experts suggest otherwise.
- The EB-5 program has funded major real estate projects, such as Hudson Yards and The Wharf, raising over $2B annually.
- The gold card may allow investors to sponsor other immigrants’ visas, with funds directed toward reducing the national debt.
President Donald Trump announced Tuesday that his administration will phase out the EB-5 visa program and replace it with a new investment-based immigration initiative called the “gold card.”
All That Glitters…
According to Commerce Secretary Howard Lutnick, the proposed program, which would require a $5M investment for US residency, is expected to launch within weeks, as reported by Bisnow.
“The EB-5 program was full of nonsense, make-believe, and fraud,” Lutnick said. “Rather than having this sort of ridiculous EB-5 program, we’re going to end it and replace it with the Trump gold card.”
The EB-5 visa program, which allows foreign nationals to invest $1M (or $800K in designated areas) in job-creating projects in exchange for a green card, helped fund major real estate developments, including Hudson Yards in New York and The Wharf in Washington, DC.
Congress reauthorized the program in 2022 and has facilitated over 100K green cards.
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Legal And Logistical Hurdles
Trump claims the EB-5 visa program can be replaced without congressional approval, but immigration attorney Marlon Hill disagrees.
“Congress has to approve these changes to these visa-eligible categories,” Hill said. “There are three branches of government, and certainly immigration law falls within the gamut of federal legislation.”
Despite this, congressional Republicans have largely supported Trump’s immigration policies, making legislative approval possible. However, the administration has yet to clarify how the transition would impact existing EB-5 visa holders or whether they must meet the new $5M investment threshold.
Real Estate Implications
The existing EB-5 program raised over $2B annually in recent years, much of it directed to large-scale real estate projects. While details surrounding the gold card remain unclear, the real estate industry will closely watch its potential impact.
Peachtree Group, which launched an EB-5 investment arm in 2023, suggested that the new program may ultimately supplement, rather than replace, EB-5.
“President Trump has expressed support for legal, investment-driven immigration, and we look forward to engaging with his administration to ensure that any new program complements existing initiatives like EB-5,” said Peachtree spokesperson Charles Talbert.
Trump also suggested that the gold card could allow wealthy investors to sponsor other immigrant visas, positioning it as a mechanism for attracting top talent while raising funds to pay down the national debt.
Bigger is Better?
While the proposed gold card residency program raises many questions, one thing is clear: by increasing the investment threshold from $1M to $5M, the gold card would make investor visas more exclusive.
Attorney Marlon Hill believes most current EB-5 participants could meet the new requirements if necessary. “If you can do $1M, you can do $5M—these are very sophisticated business folks,” Hill said. “I don’t see it being an extraordinarily big deal, other than the fact that we’re going to have a smaller percentage of people who are able to meet this threshold.”
With an ambitious timeline but legal uncertainty, the Trump administration’s proposed shift in investment immigration policy is set to spark intense debate in the coming weeks.
