Trump Unveils “Gold Card” Visa: A New Immigration Policy for Wealthy Investors
- International Affairs North America
Shreya Naskar- 0
- 10 minutes read
In a major shift in U.S. immigration policy, President Donald Trump has announced a new “Gold Card” visa program, aimed at attracting high-net-worth individuals by offering them a pathway to U.S. citizenship in exchange for a substantial financial investment. This program is designed to replace the existing EB-5 Immigrant Investor Program, which has existed since 1990.
What is the “Gold Card” Visa?
The “Gold Card” visa is a residency-by-investment program that allows foreign nationals to secure U.S. residency and eventual citizenship by investing a minimum of $5 million in the American economy. Unlike the EB-5 program, which required investors to create at least 10 full-time jobs, the new policy removes this requirement, making the process simpler and more attractive to wealthy individuals. The EB-5 Immigrant Investor Program has faced criticism over the years due to its complex application process, fraud concerns, and slow processing times. Trump’s administration argues that the “Gold Card” visa will streamline the process and bring in wealthier investors who can contribute significantly to the U.S. economy without the burden of job creation requirements. The EB-5 Immigrant Investor Program was created in 1990 by the U.S. Congress to stimulate the American economy through foreign investment and job creation. It provides a pathway to U.S. permanent residency (Green Card) for eligible foreign investors who contribute to economic growth by investing in U.S. businesses.
Key Features of the EB-5 Program
- Investment Requirements: Investors must invest a minimum of $1 million in a new or existing U.S. business. If investing in a Targeted Employment Area (TEA) (rural areas or regions with high unemployment), the minimum investment is $500,000.
- Job Creation Mandate: The investment must create or preserve at least 10 full-time jobs for U.S. workers within two years. Jobs must be direct (within the business) or indirect (through economic impact in a Regional Center project).
- Path to Green Card: Investors and their immediate family (spouse and children under 21) receive a conditional Green Card for two years. After proving that the investment has met job creation requirements, they can apply for permanent residency (unconditional Green Card).
- Regional Center Program: In 1992, the EB-5 Regional Center Program was introduced, allowing investments in government-approved projects. This option lets investors contribute to large-scale projects like real estate, infrastructure, and renewable energy, where indirect job creation is also considered.
Challenges and Reforms
Fraud and Misuse: Cases of fraud, misuse of funds, and failure to deliver promised jobs led to increased government scrutiny. Processing Delays: Long waiting times, especially for investors from China, India, and Vietnam, led to demand for reforms. Reforms: In 2019, the minimum investment amount was raised to $900,000 for TEAs and $1.8 million for non-TEAs, but in 2022, it was lowered to $800,000 for TEAs and $1.05 million for non-TEAs under the EB-5 Reform and Integrity Act.
Current Status and Future of EB-5
The EB-5 program remains a key option for high-net-worth individuals seeking U.S. residency. However, it faces competition from alternative investor visa programs, including Donald Trump’s proposed “Gold Card” visa, which aims to replace EB-5 with a simpler and higher investment threshold. Despite its challenges and evolving policies, EB-5 continues to be a vital tool for economic growth and foreign investment in the U.S.
Key Differences Between EB-5 and Gold Card Visa:
- Investment Amount: EB-5 requires $1 million (or $500,000 in targeted areas); Gold Card requires $5 million.
- Job Creation: EB-5 mandated at least 10 U.S. jobs; Gold Card removes this requirement.
- Processing Time: Expected to be faster under the Gold Card visa.
- Targeted Investors: Focuses on ultra-high-net-worth individuals rather than mid-level investors.
Implications of the “Gold Card” Visa
Trump’s proposal is expected to boost foreign direct investment in the U.S., particularly in real estate, infrastructure, and businesses. However, critics argue that this approach favours the wealthy while limiting opportunities for middle-class investors who previously benefited from the EB-5 program. Additionally, immigration advocates question whether selling residency and citizenship to the highest bidder aligns with the values of the U.S. immigration system. On the other hand, supporters believe it will strengthen the economy and attract global talent.
Future Outlook
While the program has been announced, its implementation timeline and legislative approval process remain unclear. Legal experts suggest that replacing an established immigration program like EB-5 may face political and legal challenges, requiring congressional approval before it can take effect. As more details emerge, the “Gold Card” visa is set to be a significant topic of debate in U.S. immigration policy, shaping the future of investment-based immigration in the country.