At the beginning of the month Congress renewed the EB-5 visa program, which was set to expire, for another four-and-a-half months when they passed their continuing resolution. This visa program has been impaired by fraud and abuse and while most of the lawmakers agree that the program needs to be reformed they could not agree on what type of reforms and so they punted the decision to the new incoming administration and Congress.
The EB-5 visa program allows foreign nationals to obtain or essentially “buy” green cards if they invest at least $500,000 in American businesses. The program was designed to help create jobs and increase foreign investment in the U.S. economy but many are questioning if this program is as effective as it has claimed.
A 2015 report GAO report found that the EB-5 Visa program is at risk for fraud and is not providing the economic benefits it was supposed to create. In September 2016 the GAO said that DHS has taken steps to address the fraud risks but the problem still remains.
“After another year, we have yet another missed opportunity,” said Senate Judiciary Committee Chairman Chuck Grassley, who has introduced legislation to reform the program last year.
“The EB-5 regional center program has been plagued by fraud and abuse,” he said. “It poses significant national security risks. There are serious allegations that the program may be facilitating terrorist travel, economic espionage, money laundering and investment fraud.”
Read more on this story at The Washington Times.
Updated: Fri, Jan 13th 2017 @ 11:50am EST