Trump's Gold Card Gambit: A Threat to the EB-5 Program?

A Controversial Introduction: Gold Card vs. EB-5

The Trump administration’s proposition of the “gold card” has stirred the waters in the domain of US residency investments. With a $5 million price tag for expedited residency, many eyes are on how it competes with the existing EB-5 program—especially in light of Mona Shah’s observation that eliminating EB-5 outright would require an act of Congress.

New Path, Contrasting Stakes

The gold card sets itself apart with its nature as a non-refundable donation, unlike EB-5’s investment model, where capital can eventually return to investors. This paradigm shift raises questions about its appeal, despite offering tax benefits that attract high-net-worth individuals by limiting liability to US-derived income. Yet, as Shah suggests, the substantial financial ask could deter widespread adoption.

A Parallel Existence?

Shah anticipates that both the gold card and EB-5 will coexist, running parallel paths despite their differences. Still, the gold card’s substantial financial requirement and lack of investment return are formidable hurdles for potential applicants accustomed to the more affordable and investment-reliable EB-5.

Trump’s Policy Dance Around EB-5

Though the Trump administration’s rhetoric underscores dissatisfaction with EB-5, Shah remains skeptical about legislative elimination, citing its entrenched legal foundation. What remains a concern, however, is the administration’s potential to diminish the program’s effectiveness through policy—indirectly stymying it with procedural bottlenecks and arbitrary rejections.

A Growing EB-5 Demand Despite Challenges

Curiously, the announcement has amplified EB-5 interest, especially within its regional center program currently authorized until 2027. Investors are rushing to secure their standing within existing protocols, driven by the looming need for reauthorization. Mona Shah, however, remains cautiously optimistic, warning that Trump’s policies could, subtly yet effectively, challenge the program’s survival without direct intervention.

According to IMI Daily, the gold card proposal has stimulated interest in alternative residency paths, potentially reshaping the landscape of US immigration investment.