Last year, China was the second-largest source of immigrants to the United States, with a total population of approximately 2.72 million, while India ranked third. Will major changes to U.S. immigration policy alter the data in future reports? Undoubtedly. So, what are the contents of the 'most significant immigration reform in half a century' in the United States? Below is a summary of the details of the new policy proposals.
What are the contents of the new policy proposals?
1. Establish a merit-based system
Following the policies of Canada and Australia, a merit-based system will be established to select immigrants based on criteria including English proficiency, financial status, and job skills.
2. Drastic cuts to family-based immigration
End the 'chain migration' policy for green card applications, limiting it only to immediate family members such as minor children. This will restrict family-based immigration for other relatives, including adult children, parents, and siblings.
3. Abolish the green card lottery
Currently, the U.S. issues 50,000 green cards annually through a lottery system for countries with relatively low immigration rates to the U.S., including those born in Hong Kong, Macau, and Taiwan. Due to concerns regarding fraud and a lack of economic or humanitarian justification, this program is to be abolished.
4. Limit the total number of refugees
The proposal requires limiting the number of refugees granted green cards annually to 50,000.
If this bill passes, the new policy will have both advantages and disadvantages. The benefit is that the previous lottery system might have allowed less diligent individuals to stay, while more hardworking people were forced out of the U.S. simply because they were not as 'lucky,' which is inherently unfair. A merit-based system allows hardworking individuals to be rewarded for their efforts rather than leaving their fate to an uncertain lottery system.
The obvious drawback is that by restricting the immigration of parents and adult children, it forces individuals to consider whether to stay and work in the U.S. after graduation and when to apply for a U.S. green card much earlier. Due to the impact of domestic family planning policies, the majority of students studying abroad in recent years are only children. Most international students may choose to stay and work in the U.S. for a period after graduation, but many ultimately choose to return home due to their attachment to their parents.
Unlike previous presidents who focused more on international humanitarianism, Trump's governing philosophy is based on national interests, adhering to the 'Hire American, Buy American' principle. As a businessman, Trump is always considering interests. While firmly opposing immigration that abuses U.S. welfare, consumes U.S. resources, or endangers national security, he is more welcoming to immigrants who can bring tangible benefits to the U.S.—that is, wealthy or talented immigrants, such as high-tech professionals, top talent in Silicon Valley, and investment immigrants.
From the perspective of Trump's encouragement and support for legal immigration policies, this could potentially benefit EB-5. As a legal investment immigration program, EB-5 is protected by U.S. law. Investment immigration not only brings more capital and wealth directly to the U.S. and stimulates the U.S. economy, but it also creates more job opportunities, which can be said to be very much in line with Trump's philosophy—'Make America Great Again!'
2017 was known in the industry as a major year for EB-5 U.S. investment immigration reform. On one hand, the EB-5 bill, which had been extended repeatedly for many years, expired again on September 30, 2017; on the other hand, the U.S. government and EB-5 related interest groups were unprecedentedly aligned on the pace of reform, and the urgency for reform was growing day by day.
So, what is the impact of this reform on EB-5?
1. The increase in investment amounts, especially such a significant increase, will inevitably be a huge blow to the EB-5 industry;
2. We predict that the market can still accept an increase to $800,000 for TEA areas. However, once it exceeds $1 million, we believe that the enthusiasm of Indian investors for EB-5 projects will significantly decline, which might leave some vacancies for Chinese investors;
3. Given the excessively long waiting periods for investors from mainland China, many applications have begun to use children as the primary applicants. However, the DHS bill may not allow minors to serve as primary EB-5 applicants.