John Burson  edited Friday, December 12, 2025

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New EB-5 Visa Bill Proposes Lower Investment Threshold for US Housing Projects

EB-5 investment visa program expansion targets rental and rehabilitation projects with $800K threshold and faster green card processing

Arizona Senator Ruben Gallego has introduced groundbreaking legislation that could reshape the EB-5 visa program and EB-5 investment visa requirements, redirecting foreign capital toward solving America's housing crisis. The proposal, announced on December 5, 2024, comes at a critical time when housing affordability has emerged as a top concern for American voters ahead of the 2026 midterm elections.

Understanding the EB-5 Visa and Investment Program

The EB-5 visa program, officially known as the EB-5 immigrant investor visa program, has long served as a pathway to US permanent residency for foreign investors willing to contribute capital to American businesses. Under current EB-5 investment visa requirements, applicants must invest a minimum of $1.05 million in a new commercial enterprise that creates at least 10 full-time jobs for US workers.

A reduced investment threshold of $800,000 exists for EB-5 visa projects in targeted employment areas (TEAs)—regions with high unemployment or rural locations—as well as infrastructure projects. The EB-5 program caps visas at approximately 7 percent of all employment-based green cards issued annually, with per-country limits applied.

In fiscal year 2023, nearly 12,000 individuals received conditional permanent resident status through the EB-5 investment visa program, demonstrating its continued popularity among foreign investors seeking US residency.

What the New EB-5 Visa Bill Proposes

Senator Gallego's legislation introduces several significant changes designed to direct EB-5 investment visa capital specifically toward housing supply:

Expanded Lower Threshold Eligibility: The EB-5 visa bill would extend the $800,000 reduced investment amount to projects focused on the production, preservation, or rehabilitation of rental properties, as well as homes intended for purchase as principal residences only. Currently, this lower EB-5 investment threshold is limited to TEAs and infrastructure projects.

Expedited Processing for Affordable Housing: EB-5 visa applications connected to affordable housing developments would receive priority processing, potentially reducing the typically lengthy wait times for EB-5 immigrant investor visa approval.

Focus on Supply Increase: By steering EB-5 program capital toward construction and rehabilitation, the legislation aims to address the fundamental housing shortage that has driven prices beyond reach for many American families.

"By steering more EB-5 investment towards housing, we can boost the housing supply, bring down costs, and create good jobs for American workers," Senator Gallego stated when introducing the bill.

The Housing Affordability Crisis

The timing of this proposal reflects the urgency of America's housing situation. Years of underbuilding, combined with elevated mortgage rates, have created what experts describe as an affordability crunch affecting millions of households across the country.

Recent Democratic victories in local elections highlighted how housing costs have become a decisive factor for voters. Both political parties are actively seeking solutions, recognizing that whoever addresses this issue effectively could gain significant electoral advantage.

Industry groups have responded positively to the proposal. Kevin Brown, president of the National Association of Realtors, noted that the legislation "gives builders, nonprofits and local partners the tools they need to bring projects online faster and at lower cost." He emphasized that the bill could "help spur new construction, preserve existing affordable units, create jobs and expand the pathway to stable, attainable housing."

Recent Fee Reductions Make EB-5 Visa More Accessible

The proposed EB-5 investment visa legislation comes on the heels of important changes to EB-5 visa filing fees. In November 2024, US Citizenship and Immigration Services (USCIS) reversed substantial fee increases following a federal court ruling in Colorado that declared the hikes unlawful.

The rollback represents significant savings for EB-5 visa applicants:

• Form I-526 (EB-5 Immigrant Petition by Standalone Investor): Reduced from $11,160 to $3,675—a decrease of more than 67 percent
• Other EB-5 investment visa-related forms: Also saw substantial reductions

These lower EB-5 visa fees apply to all petitions filed after November 26, 2024, making the EB-5 immigrant investor visa pathway considerably more affordable just as the new housing-focused legislation gains attention.

Surge in Indian EB-5 Visa Applications

Data from the American Immigrant Investor Alliance (AIIA) reveals a dramatic increase in EB-5 visa interest from Indian nationals, particularly since April 2024. This surge in EB-5 investment visa applications appears linked to tighter restrictions on student and temporary work visas implemented during the Trump administration.

The numbers are striking: in just the first four months of fiscal year 2025, Indian applicants filed more than 1,200 I-526E petitions across reserved EB-5 visa categories—exceeding the total from any previous full year. Since October 2022, Indian EB-5 investment visa petitions have surpassed 1,790, according to Freedom of Information Act data released by AIIA.

Nicholas Mastroianni III, president and chief marketing officer of United States Immigration Fund, which operates EB-5 visa regional centers, confirmed this trend: "In the first four months of FY2025 alone, Indian applicants filed more than 1,200 I-526E petitions across reserved categories—more than any prior full year."

This growing demand from India for the EB-5 investment visa program, combined with the proposed housing-focused changes, could significantly reshape the EB-5 visa program's impact on both immigration patterns and US housing development.

Political Prospects and Industry Support

Whether the bill will advance through the Republican-controlled Senate remains uncertain. However, the support from major industry groups like the National Association of Realtors provides important momentum. The bipartisan nature of housing affordability concerns could potentially bridge political divides.

Senator Gallego, at 46 years old, has been mentioned as a possible 2028 presidential contender, with recent visits to key states fueling speculation. His focus on housing through immigration policy represents an innovative approach to a complex problem affecting millions of Americans.

Implications for Prospective EB-5 Visa Investors

For foreign nationals considering the EB-5 investment visa route to US permanent residency, this proposed legislation could offer several advantages:

• Lower Financial Barrier
  The $800,000 EB-5 visa investment threshold represents a $250,000 savings compared to the standard EB-5 investment visa requirement—a 24 percent reduction that could make the immigrant investor program accessible to more applicants.
• Faster Processing
  Priority processing for housing-related EB-5 visa applications could significantly reduce wait times, allowing families to plan their relocations with greater certainty.
• Alignment with National Priorities
  Investing in housing through the EB-5 investment visa program addresses a critical American need, potentially providing applicants with greater confidence in their investment's social impact and long-term viability.
• Job Creation Opportunities
  Construction and rehabilitation projects naturally generate employment, helping EB-5 visa applicants meet the 10-job creation requirement more readily.

Looking Ahead

As the EB-5 visa bill moves through the legislative process, prospective EB-5 investment visa applicants should monitor developments closely. Even if the legislation doesn't pass immediately, it signals growing recognition that the immigrant investor visa program can be leveraged to address domestic challenges like housing affordability.

The combination of reduced EB-5 visa filing fees, expanded eligibility for lower investment thresholds, and expedited processing could transform the EB-5 investment visa program into a powerful tool for addressing America's housing crisis while maintaining its role as a pathway to permanent residency for foreign investors.

For those considering the EB-5 visa route, consulting with experienced immigration attorneys and financial advisors remains essential to navigate the EB-5 investment visa program's complexities and ensure compliance with all requirements.

 
 
 

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