The United States Citizenship and Immigration Services (USCIS) has stated “entities seeking to be designated as a regional center are required to file Form I-956, Application for Regional Center Designation”. This essentially means all current EB-5 regional centers previously approved would have to reapply causing processing delays that could last for several years. Behring Regional Center has filed a lawsuit challenging this designation, citing possible conflicts with the Administrative Procedure Act. Behring claims that USCIS is violating the Administrative Procedure Act and that its latest guideline defies Congress’s apparent purpose.

In a letter submitted by IIUSA, the industry representative, the group expressed serious concerns about the agency’s redesignation statement’s and requested a meeting with USCIS officials to discuss them. IIUSA and its members recognize the necessity of regional center Reform and Integrity Act (RIA) compliance, but also think there is a way for regional centers to show compliance without further delaying the industry’s return. There are just too many economic development projects and jobs at stake to put off much longer.

The EB-5 Integrity and Reform Act, which was included in the fiscal 2022 omnibus budget package, raised the minimum investment requirements to $800,000 for targeted investments and $1,050,000 for regular investments. The bill also established safeguards for regional center businesses, such as increased reporting requirements. The regional center initiative was expected to resume in May, according to investors. However, new guidelines published in April on the USCIS website compels current regional center operations to re-certify by submitting new business plans, alarming industry advocates

This decision has already compelled Behring to postpone $450 million in development projects slated for the next two years. Investors have also requested that their payments be withdrawn since they no longer see a path to a green card through the EB-5 program.

“USCIS’s Announcement deauthorizing regional centers hinders innovative projects, frustrates foreign investment by rising risks to unreasonable levels, and removes any final lifelines that regional centers can give to prospective investors,” according to the complaint.”

According to Behring, current wait periods for licensing of new centers run from five to nine years, making it unlikely that any regional center operations would be reauthorized before the Integrity Act’s expiry in 2027. The latest developments will likely have a significant impact on the ability of businesses to attract investment, the group said. New construction projects may be canceled, which could also create a drag on the economy.

Meanwhile, according to the lawsuit, immigrant investors who have waited years for their green card petitions to be accepted are facing rejection since they will not be associated with recognized regional centers.