A federal program to encourage wealthy foreigners to invest in the US is increasingly being used to fund large, luxury real estate projects rather than the rural and downtrodden district developments for which it was set up. The program is receiving billions of dollars, primarily from wealthy Chinese investors. It faces an uncertain future with the expiration date on some aspects of the EB-5 US visa program set for next month after a postponement by Congress in September.
The program offers permanent residency in the US to would-be immigrants able to invest a minimum of $500,000 in a business that results in the creation of no fewer than ten jobs. A large number of the projects receiving the money have been in real estate. Medical centers, manufacturing plants and charter schools have also received funds.
Washington industry group, the EB-5 Coalition, says that since the program began, in 2005, there have been around $15 million worth of investments made. Critics have attacked the program, describing it as a method for wealthy immigrants to be able to buy themselves a place in the US.
A new aspect has been added to the debate by the election of Donald Trump as the new President. Trump has made immigration reform a major tenet of his campaign, declaring that he wants to end illegal immigration but also cut down on legal immigration to ensure that Americans get the first chance of new jobs.