The RAISE Act is a bill that was introduced to Congress by two Republican Senators on August 1, 2017.
If passed, the RAISE Act would reduce legal immigration.
The RAISE Act stands for Reforming American Immigration for a Strong Economy Act. Senators Tom Cotton and David Perdue introduced the bill. According to The National Law Review, the bill has the support of President Trump, but it does not have the support of every Republican Senator, and therefore, is unlikely to move forward.
How does the RAISE Act affect EB-5 investors?
The RAISE Act would eliminate the EB-5 Program. It would end all employment based visa categories. This system of employment based categories would be replaced with a points based system.
In order to immigrate the United States under the points based system, applicants would need 30 points. One way to earn points under the new system is to invest in a new commercial enterprise in the U.S.
- You earn 6 points if you invest foreign currency worth between $1.35 million and $1.8 million in a U.S. new commercial enterprise.
- You earn 12 points if you invest foreign currency worth at least $1.8 million in a U.S. new commercial enterprise.
Investing any amount less than $1.35 million earns applicants 0 points under this new system. Therefore, potential EB-5 applicants who planned to invest the minimum $500,000 in a new commercial enterprise would not earn any points.
Additionally, the RAISE Act also requires applicants to actively manage the investment. Whereas, one of the key benefits of the EB-5 Program is the minimal management required.