[Congressional Record Volume 165, Number 125 (Wednesday, July 24, 2019)]
[Senate]
[Pages S5036-S5037]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                              EB-5 Program

  Mr. GRASSLEY. Mr. President, I come to the Senate floor to advise my 
colleagues about a new rule that the Department of Homeland Security 
published in the Federal Register this very day to finally bring some 
needed reform to the EB-5 green card program.
  As I mentioned in my remarks on this topic last week, this rule was 
first proposed in January 2017. Those of us who want to reform the EB-5 
program have been waiting 2\1/2\ years for this rule to become final, 
and we have been waiting much, much longer than that for some 
meaningful reforms to this fraudulent-laden program that we tried to 
get enacted into law in previous Congresses and couldn't get done 
because of being up against these very powerful, moneyed interests. I 
think the President and his team deserve a lot of credit for pushing 
these reforms across the finish line and getting a big win for rural 
America.
  As I have said on numerous occasions, Congress intended for the EB-5 
program to help spur investment in rural and high-unemployment areas 
when this program was established in 1990. Unfortunately, over the last 
30 years, big-moneyed interests have been able to gerrymander EB-5 
targeted employment areas in a way that redirected investment away from 
our rural and economically deprived communities and towards major 
development projects in Manhattan and other big cities. Therefore, 
instead of providing much needed investment for rural America, as 
originally intended, EB-5 has become a source of cheap foreign capital 
for development projects in already prosperous areas of America.
  For the first time, this rule will bring much needed change so that 
condition cannot continue. Under the rule, States will no longer be 
allowed to game and gerrymander targeted employment areas. Instead, the 
Department of Homeland Security will make targeted employment area 
designations directly based on revised requirements that will help to 
ensure rural and high-unemployment areas get more of the investment 
they have been deprived of for far too long under this program, as it 
has been misdirected.
  Again, this is a major win for rural America and high-unemployment 
areas, and I want to sincerely thank President Trump and the people in 
the administration who worked on this rule for making this happen and 
looking out for the interests of my constituents in Iowa and other 
rural States and for areas of high unemployment.
  This rule also addresses the minimum investment threshold amounts 
that are required for the EB-5 projects around the country.
  This is the very first time the investment thresholds have been 
adjusted since the program was created in 1990. Think of the inflation 
since that time.
  For projects that are outside of targeted employment areas, the 
threshold will be raised from $1 million to $1.8 million. For projects 
in targeted employment areas, the threshold will be raised from 
$500,000 to $900,000. The minimum investment amount will be 
automatically adjusted for inflation every 5 years.
  It is ridiculous that our country's major green card program for 
investors has been operating with investment amounts that haven't been 
adjusted a single time in 30 years. That makes no sense, and I am glad 
the President and his team have taken necessary action to restore a 
little common sense to the EB-5 program.
  There is more work that needs to be done on the EB-5 program, and we 
will

[[Page S5037]]

have to do that by legislation, but the President and his 
administration deserve a lot of credit for finally implementing these 
first reforms that I and several other colleagues have championed for 
years.
  I, more than most, understand the power and influence that big-
moneyed EB-5 interests have historically had in Washington, and how 
they have used that power and influence to consistently thwart any 
attempt to reform this program in such an obvious way that it is 
needed.
  Their unrelenting efforts to stymie EB-5 reform over the years 
absolutely epitomize the swamp culture that so many voters rejected in 
the last Presidential election, and getting rid of that swamp culture 
is exactly what the President campaigned on. This is a perfect example 
of his carrying out a campaign promise.
  They are also representative of a culture in Washington that too 
often disregards the interests of the little guy in rural Iowa in favor 
of the interests of the rich and the powerful. Again, I applaud the 
President and his team for standing up to these rich and powerful 
interests.
  I am happy to say that, with the publication of this rule, the little 
guys in rural America finally got a win in the EB-5 program. I now look 
forward to working with the President and my colleagues to build off of 
this win and bring further reform to the EB-5 program in the future. 
Thank you, President Trump.