Last week, President Donald Trump floated a new immigration plan aimed at attracting wealthy foreigners to the U.S.
The proposal involves a “gold card,” which would allow investors to secure U.S. citizenship for a $5 million investment.
Trump suggested it could raise $1 trillion to reduce the national debt, and Commerce Secretary Howard Lutnick backed the idea, claiming it would replace the current EB-5 visa.
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However, immigration law experts warn that the proposal is far more complex than it sounds. Here’s why.
The Legal Roadblock: The President Cannot Create New Visas
One of the main issues with Trump’s gold card proposal is that a president cannot unilaterally create a new visa.
The U.S. president lacks the authority to introduce new pathways to citizenship or residency.
As Sharvari Dalal-Dheini, senior director of government relations at the American Immigration Lawyers Association, notes, this requires an act of Congress, not executive action.
The gold card would grant lawful permanent residency, a privilege that would require new legislation to be passed by lawmakers, a process that could take years.
The EB-5 Visa: Replacing or Modifying?
Trump’s plan aims to replace the existing EB-5 visa program, which allows foreign investors to fund U.S. projects in exchange for residency.
Immigration experts argue that any major changes to the EB-5 program would require congressional approval, as the program was established by law in 1990.
Lutnick has since suggested that the gold card would modify the existing EB-5 agreement, not entirely replace it.
However, immigration attorney Charles Kuck argues that Congress would likely oppose such a drastic change, especially since the EB-5 program has proven to be a substantial economic contributor.
The EB-5 Program’s Economic Impact
The EB-5 program has raised billions over the years, and Kuck believes that the proposed $5 million gold card would significantly limit the number of participants, as most investors would avoid U.S. taxation.
The complexity of ending the EB-5 program, combined with its significant financial impact, makes it highly unlikely to be replaced by a gold card.
Congressional Hurdles: Changing the EB-5 Program
Even if the gold card were to replace the EB-5 program, it is not clear how such a major shift would be approved through Congress.
While it’s possible to add a gold card provision as part of a larger immigration reform package, immigration lawyer Nicolette Glazer emphasizes that changing immigration law through budget reconciliation would be highly unlikely.
What About Existing Investors?
Thousands of people are currently waiting for their EB-5 visa approval. Many are concerned about how the gold card proposal might affect their pending applications.
According to Dalal-Dheini, abruptly altering the process could harm both the investors and the U.S. economy.
Uncertainty surrounding the future of these investments highlights a potential flaw in the gold card plan, as it might undermine investor confidence in the U.S. immigration system.
Unanswered Questions: Who Benefits from the Gold Card?
Trump’s proposal has raised additional concerns, particularly regarding the vetting process and the possibility that the gold card could attract criminal actors seeking safe passage to the U.S. Transparency International CEO Maíra Martini warned that selling U.S. citizenship could invite corruption.
Moreover, the proposal has also been criticized for focusing on the wealthiest individuals rather than those who could contribute more to the U.S. economy, such as skilled professionals or entrepreneurs.
The Future of Trump’s Gold Card Proposal
While Trump’s gold card idea may have gained attention for its boldness, experts warn that its execution faces numerous legal, economic, and practical challenges.
The plan would need congressional approval to succeed, and even then, its potential consequences are uncertain.
Despite these hurdles, immigration expert Dalal-Dheini sees a positive takeaway from Trump’s proposal: the acknowledgment that immigrants contribute significantly to the U.S. economy.
Whether or not the gold card ever materializes, the underlying idea that immigration fuels innovation and growth remains a point of bipartisan agreement.
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Written By HowNHowTo.com