|The Wall Street Journal – TO AMERICAN WORKERS
September 8, 2015
May we draw your attention to certain special interest groups that are misleading Congress at the expense of American workers? As follows:
The Immigration Act of 1990 created the Immigrant Investor Program as the fifth preference category for employment-based immigration, also known as EB-5. The EB-5 category requires an alien investor to (1) invest a minimum of $500,000 in a U.S. project and (2) create 10 jobs by hiring 10 American citizens or legal residents. However, due to a lack of investors’ interest at the time, the Regional Center Pilot Program was subsequently introduced in 1992 to soften the 10 jobs requirement by alternatively allowing for “indirect jobs.” Indirect jobs are calculated via a subjective analysis by a third-party economist. This allowance of indirect jobs for computing EB-5 job creation, in most cases, results in only five or fewer Americans actually being hired. In short, this Regional Center (“RC”) program has reduced American job creation by at least 50%.
The world has since changed. Now, there is much more investor interest for the EB-5 Green Card. This year the annual quota of 3,000 families (or 10,000 visas) is out-demanded by 15,000 families in the queue. But the outdated RC law continues to allow the 10 “indirect jobs” instead of requiring that at least 10 Americans be hired as a result of each EB-5 investment.
So now, the right thing to do is to let the RC Pilot program expire, as it is supposed to, on September 30, 2015, and let the original 1990 EB-5 program maximize job creation in America, as there are more than enough direct job projects in the country to take up the annual quota of EB-5 visas.
Yet, such an obvious solution is heavily resisted in Congress because a number of special interest groups have utilized the RC as a cheap source of capital, without having to create the 10 real jobs per investment. To date, there is a bill in the Senate and
three bills in the House of Representatives, all advocating to continue the RC program. They call themselves “job creation” bills when in fact they reduce the number of real jobs, by extending the RC program and not maximizing American job creation. The Senate bill (S.1501) even allows certain RC projects to be grandfathered-in to existing RC regulations at the $500,000 minimum investment level, when all other investors are required to meet the new $800,000 investment threshold, effectively making any new law futile, as the grandfathered-in projects will consume the EB-5 quota for years to come.
We at MAJA “More Jobs” (More American Jobs Alliance found at www.maj-a.us) support the EB-5 Immigrant Investor program because it creates real jobs for American workers.
However, we do not support the Regional Center Program, which should be allowed to expire. If an alien investor is to obtain an EB-5 Green Card, he should be required to create 10 real jobs for 10 American workers and nothing less.
To learn more about how you can support American job growth,
visit us online at www.maj-a.us
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