On February 22nd, 2019, the Executive Office of the President, namely the Office of Information and Regulatory Affairs (OIRA), received new information for review regarding “EB-5 Immigrant Investor Program Modernization” regulations.
This is the eighth step in a nine-step process (from initiating events to final publication) that forms the foundation for informal rulemaking in the United States.
The Office of Management and Budget (OMB), being the office directly above the OIRA, has begun its review of these new regulations and will likely move forward to the ninth step in the process in 90 days if there are no unforeseen delays.
While the public is unaware of the minute details of this new regulation, as proposed, it could have financial implications on the investment of the EB-5 Investor Visa, increasing the minimum investment from $500,000 USD to $1,350,000 USD. Other possible changes in the program may include how TEAs are designated.
Informal rulemaking is a process that allows for amendments to current regulations to be deliberated on and reviewed without the proposed rule being subjected to a hearing (much like a trial) before approval and publication. Once an idea for an amendment or repeal is formulated, the proposed rule is then discussed, prepared, and reviewed by the OMB before publishing (steps one through five).
After publication, there is a period of 30 to 60 days in which the public can comment on the proposed ruling, which the committee takes into consideration before drafting the final rule and sending it back to OMB for its final review (steps six through eight).
Once reviewed by OMB, and in need of no further amendments, the agency must publish this new regulation in the Federal Register. Most rulings cannot take effect until submitted to Congress and the General Accounting Office (GAO), after which it is added to the Code of Federal Regulations.
For more information on the EB-5 investor visa and how this new ruling may potentially affect your application process, contact us for more details.