HOT: US COURT REMOVES THE RULE 2019, EB-5 MAY RETURN TO 500.000 USD
EB-5 investment – According to yesterday’s ruling, the EB-5 Modernization Rule, which increased the value of the EB-5 program’s minimum investments in 2019, is no longer in effect.
The Northern District Court of California yesterday made a judgment in favor of Behring Regional Center in its case against Chad Wolf (Acting Secretary of Homeland Security – DHS).
Submitted last December, the Regional Center lawsuit alleges that DHS violated federal law by enacting an arbitrary and capricious rule when it enacted the EB-5 Modernization Rule in November 2019. Plaintiff, represented by leading immigration law firm Greenberg Traurig, also alleges that DHS did not have the necessary legal authority to issue the Rule.
The Modernization Rule, among other effects, raised the minimum investment requirement for the U.S. EB-5 investment from $500,000 and $1 million to $900,000 and $1.8 million. million US dollars.
The wrong action – EB-5 investment
The court made a judgment in favor of the Behring Regional Center and found that former acting DHS Secretary Kevin McAleenan acted improperly under the Federal Employment Reform Act when it enacted the Rule. Consequently, the court further ruled that the 2019 Modernization Rule must be rejected, which means invalid.
The Court further made a judgment that the March 2021 approval of the Modernization Rule by current DHS Secretary Mayorkas failed to “correct” the original improper implementation.
Currently, the DHS side may not have decided to appeal and has not asked the judge to uphold the decision.
(*) According to the regulations of the United States, the decision of the district court can be reviewed by the litigant in the court of appeal. If the decision of the appellate court is still unsatisfactory, the litigant has the right to appeal to the supreme court.
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