Key Takeaways:
- The USCIS fee schedule will see significant increases, particularly for EB-5 form filing fees, starting from April 1, 2024.
- The fee increases pose challenges for service providers and increase the financial burden on EB-5 users.
- The Department of Homeland Security is conducting a separate fee study for EB-5 to establish fees that support expedited processing.
Understanding the USCIS Fee Schedule Final Rule and the Impact on the EB-5 Program
Immigration investors, take notice: significant changes are on the horizon for the EB-5 visa program. The Federal Register has recently published a Final Rule that outlines the modifications set to be implemented in the USCIS fee schedule. This adjustment, which will be effective from April 1, 2024, includes substantial increases to EB-5 form filing fees. In this post, we’ll dive into the ramifications of these changes for stakeholders and analyze the details of the upcoming fee adjustments.
EB-5 Fee Increases: A Strategic Implication
One of the standout changes in the Final Rule involves the increase of EB-5 form filing fees. These increased fees serve as a double-edged sword: they present a fleeting opportunity for EB-5 marketing with a message to ‘File now before the fees go up!’ At the same time, this poses challenges for service providers who must navigate the surge of applicants seeking to beat the fee spike and plan for the potential decline afterward.
Moreover, these fee hikes will bolster the USCIS coffers but also increase the financial burden on EB-5 users, particularly considering the ongoing issue with limited visa availability. The longevity of these new fees will be determined by whether they’re blocked by litigation or superseded by another rule—an event that occurred with the last USCIS fee increase attempt, which was canceled due to a successful legal challenge in 2019/2020.
The Future of EB-5 Fee Regulations
It’s worth noting that the Department of Homeland Security (DHS) is concurrently conducting a separate fee study for EB-5, mandated by the EB-5 Reform and Integrity Act. This assessment was due by March 2023 and aims to establish fees that support expedited EB-5 processing. However, as stated in the Final Rule, “that effort is still in its early stages.”
DHS has merely “initiated a working group to begin drafting the rule” necessary to facilitate timely processing, which can be seen as an initial step in a possibly lengthy process. This echoes the adage from the show ‘Yes Minister’—that policy effectiveness is determined by the implementation process undertaken by the department.
A Closer Look at the New EB-5 Filing Fees
The fee changes detailed in the Final Rule are outlined below:
- Form I-526/I-526E: The fee has jumped from $3,675 to a staggering $11,160.
- Form I-829: Filing fees have risen from $3,750 to $9,525.
- Form I-956: The fee, previously $17,795, is now set at $47,695.
- Form I-956F: This also sees an increase from $17,795 to $47,695.
- Form I-956G: The fee has risen modestly from $3,035 to $4,470.
These adjustments reflect a significant increase in the USCIS’s projection of EB-5 fee revenues, from previous anticipations of $80.7 million to an updated estimate of $139.7 million.
DHS’s Fee-Setting Methodology
The DHS follows a “full cost recovery model” when calculating filing fees. Even though the Final Rule reveals an increase in the expected volume of EB-5 fee-paying receipts, DHS chose to maintain the proposed high fees, indicating an increase in “cost reallocation” to itself rather than passing anticipated economies of scale onto customers. The USCIS appears to leverage the EB-5 program fees to fund immigration services that are provided on a fee-exempt, fee-reduced, or fee-waived basis, underpinned by the principle that those with a greater ability to pay should shoulder a larger cost burden. This is supported by the understanding that “immigrant investors and regional centers have the ability to pay more than most USCIS customers.”
Implications of Increased EB-5 Fees for Investors and Stakeholders
The substantial increase in EB-5 filing fees undoubtedly affects the decisions of prospective investors and regional centers. The Final Rule statement noted with satisfaction:
“Increasing the fee-paying receipt forecasts for these workloads conversely increased the estimated revenue generated by EB-5 fees. DHS also revised the USCIS budget to reflect these changes.”
It’s important, however, to recognize that the anticipated increase in USCIS fee revenue from the EB-5 program—amounting to approximately $44,746,040 in “annual transfer payments from EB-5 investors and regional centers to USCIS”—is theoretical. The reality may differ significantly, especially since the current visa allocation does not line up with the increased projections of the receipt volume.
For stakeholders within the EB-5 domain and those considering stepping into this investment avenue, it has become imperative to understand not only the cost implications but also the timing requirements for filing petitions. As USCIS fee schedule changes are set to take effect in 2024, interested investors are advised to seek legal counsel and prepare their applications in a timely manner before the impending increases.
Prospective EB-5 visa applicants can find more information about the changes on the USCIS website or by reaching out to an experienced immigration attorney for personalized guidance. Being well-informed about these developments is crucial for making strategic investment decisions that align with individual long-term immigration goals.
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Glossary: Understanding the USCIS Fee Schedule Final Rule and the Impact on the EB-5 Program
- EB-5 Visa Program: The EB-5 visa program is an immigration program that allows foreign investors to obtain a U.S. green card by investing a certain amount of capital in a new commercial enterprise that creates jobs for U.S. workers.
USCIS: The United States Citizenship and Immigration Services (USCIS) is the government agency responsible for overseeing lawful immigration to the United States, including the administration of immigration benefit applications and petitions.
Final Rule: In the context of immigration, a Final Rule refers to a regulation that has completed the rule-making process and has been published in the Federal Register. It outlines changes or updates to existing immigration policies or procedures.
Fee Schedule: The Fee Schedule refers to the list of fees charged by USCIS for various immigration processes, including visa applications, petitions, and benefit requests.
Form Filing Fees: Form filing fees are the fees required to be paid when submitting various immigration forms or applications to USCIS. These fees cover the cost of processing and adjudicating the submitted forms.
Stakeholders: In immigration, stakeholders refer to individuals or groups who have an interest or are impacted by a particular immigration policy or program. This can include investors, immigration attorneys, regional centers, and other entities involved in the EB-5 visa program.
Visa Availability: Visa availability refers to the number of available visas that can be issued within a specific immigration category, such as the EB-5 visa category. Limited visa availability means that there are restrictions on the number of visas that can be granted each year.
Litigation: Litigation refers to a legal dispute or lawsuit. It is a process through which individuals or organizations seek remedies or resolutions to legal issues in court.
Department of Homeland Security (DHS): The Department of Homeland Security is a U.S. federal agency responsible for ensuring the security of the United States and managing various aspects of immigration, including immigration policies, visa programs, and border security.
EB-5 Reform and Integrity Act: The EB-5 Reform and Integrity Act is legislation aimed at making reforms to the EB-5 visa program to ensure its integrity, efficiency, and effectiveness. It includes provisions related to visa allotment, investment requirements, and program oversight.
Filing Fees: Filing fees are fees paid to USCIS when submitting immigration forms or applications. These fees cover the cost of processing, adjudicating, and providing immigration services related to the submitted forms.
Projected Fee Revenues: Projected fee revenues refer to the estimated amount of money that USCIS expects to collect from filing fees for immigration forms or applications. It reflects the anticipated income generated by the payment of these fees.
Full Cost Recovery Model: The full cost recovery model is a methodology used by DHS to calculate filing fees for immigration processes. It involves determining the full cost of providing immigration services and allocating that cost to fee-paying applicants in order to cover the expenses incurred by the agency.
Expedited Processing: Expedited processing refers to a faster processing timeline for immigration applications or petitions. It may be available in certain circumstances, such as emergencies or situations involving significant public interest.
Cost Reallocation: Cost reallocation refers to the redistribution of expenses or costs within an organization or agency. In the context of USCIS fees, it means that a greater portion of the costs associated with immigration services is being borne by fee-paying applicants, rather than being subsidized by other revenue sources.
Immigrant Investors: Immigrant investors are foreign individuals who invest capital in an approved EB-5 project in the United States with the goal of obtaining a U.S. green card through the EB-5 visa program.
Regional Centers: Regional centers are entities designated by USCIS that facilitate investment and job creation in a specific geographic area. They play a key role in the EB-5 visa program by connecting immigrant investors with qualifying investment opportunities.
Petitions: In immigration, petitions refer to formal requests or applications submitted to USCIS to request immigration benefits or status. This can include petitions for visas, green cards, or other immigration benefits.
Timing Requirements: Timing requirements refer to specific deadlines or timeframes within which certain actions or submissions must be completed in the immigration process. In the context of the EB-5 program, it refers to the need to file petitions before the effective date of fee increases.
Overall, the glossary provides definitions for immigration-related terms and acronyms used in the content to enhance the understanding of the topic discussed.
So there you have it, folks! The USCIS fee schedule changes are making their mark on the EB-5 program, with significant fee increases on the horizon. It’s a mixed bag of challenges and opportunities for investors and service providers alike. But fear not, for there’s always more to explore on visaverge.com. So why not hop on over and discover all the insights and resources you need to navigate the world of immigration? Go on, you know you want to!
This Article in a Nutshell:
Changes are coming for the EB-5 visa program. The USCIS fee schedule will soon see increases to form filing fees. The adjustments, effective from April 1, 2024, will impact stakeholders. The fee hikes will affect users and service providers. The Department of Homeland Security is also working on separate fee regulations. Important to be aware of timing and costs. Seek legal counsel and stay informed.
