The EB-5 Reform and Integrity Act of 2022: Overview

The EB-5 Immigrant Investor Program, a cornerstone of U.S. investment-based immigration, underwent significant changes with the enactment of the EB-5 Reform and Integrity Act of 2022 (RIA). This legislation, passed as part of the Consolidated Appropriations Act, 2022, aimed to restore stability, enhance integrity, and provide necessary funding extensions to the program after a period of lapse.

Key Objectives and Immediate Impact

The RIA sought to address long-standing criticisms of the program, primarily focusing on transparency, investor protections, and ensuring that investments genuinely benefit the U.S. economy. A crucial immediate impact was the extension of the program's authorization, preventing its expiration.

Restoration of Regional Centers

One of the most significant provisions was the immediate reauthorization of Regional Centers, which had expired in June 2021. The RIA extended authorization through:

• September 30, 2027, for projects filed under the standard EB-5 process.
• September 30, 2026, for projects filed under the EB-6 Pilot Programs (though these pilot programs were not explicitly renewed in the same manner).

Enhanced Integrity and Compliance Measures

The Act introduced substantial new requirements designed to bolster oversight and prevent fraud within the Regional Center structure.

Increased Oversight and Reporting

Regional Centers now face stricter compliance burdens, including mandatory annual certifications and detailed reporting requirements to U.S. Citizenship and Immigration Services (USCIS).

Specific compliance mandates include:

1. Annual compliance reports detailing investments and job creation figures.
2. Mandatory site visits by USCIS auditors.
3. Stricter vetting processes for Regional Center principals and employees.

New Investor Protections

The RIA introduced measures intended to safeguard the capital invested by EB-5 applicants, particularly concerning the handling of funds prior to final approval.

Investors are now afforded greater transparency regarding the status of their capital deployment and the associated risks, moving away from opaque investment structures that previously characterized some centers.

Changes to Visa Allocation and Processing

While the fundamental visa allocation structure remained largely intact, the RIA clarified processing procedures and addressed the backlog.

Set-Asides and Visa Set-Asides

The Act codified the set-aside visa numbers for Targeted Employment Areas (TEAs) and infrastructure projects, providing certainty for these specific investment categories:

• 20% of the annual visas reserved for TEAs.
• 10% of the annual visas reserved for infrastructure projects.
• 7% of the annual visas reserved for individual employment creation visas (non-Regional Center).

Processing Transparency

The legislation mandates that USCIS establish clear processing goals and timelines. Furthermore, it addresses the issue of interfiled petitions, particularly for investors whose initial I-526 petitions were filed before the RIA enactment but who might benefit from the new rules.

For example, an investor who filed before the RIA could potentially benefit from the new TEA set-asides if their petition was pending:

if (petition.filingDate < Act.effectiveDate && petition.status == 'Pending') { applyNewSetAsideRules(petition); }

Conclusion

The EB-5 Reform and Integrity Act of 2022 represents a pivotal moment for the program. By reauthorizing Regional Centers, imposing rigorous integrity measures, and codifying visa set-asides, the RIA sought to restore confidence in the EB-5 pathway while ensuring that immigrant investment aligns more closely with U.S. economic priorities. Compliance and transparency are now paramount for all participants in the reformed program.