[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.