Eliminating EB-5 Would Be a Political and Economic Challenge” – Frank Sariol Explains President Trump’s Proposal

Donald Trump’s announcement of the $5 million Gold Card as a replacement for EB-5 has generated intense debate among investors and immigration experts. Attorneys Frank Sariol, Mateo Galati, Kate Kalmykov, and Jennifer Hermansky warn about its legal challenges and the uncertainty surrounding its feasibility. This analysis explores the potential effects of the proposal and what it means for those seeking permanent residency in the U.S.

On February 25, 2025, President Donald Trump announced his intention to eliminate the EB-5 Program and replace it with a “Gold Card”, which would allow investors to obtain similar benefits to a Green Card in exchange for a $5 million investment.

However, immigration experts have expressed skepticism regarding the feasibility of this proposal.

Frank Sariol, an immigration attorney with more than 35 years of experience, questions the legality and effectiveness of this initiative. “I don’t think it will be that easy for President Trump to do what he wants to do. Essentially, he wants to abolish the EB-5 system, but this is a program approved by Congress and backed by the Senate,”

Mateo Galati, also an attorney specializing in immigration and EB-5, agrees that Trump’s plan lacks a solid legal basis and faces serious political challenges. “To overturn this law, Congress would need to pass new legislation. The idea of replacing EB-5 with a $5 million Gold Card is highly controversial and politically unlikely, he explains”.

The EB-5 program allows investors to obtain permanent residency in the U.S. with a minimum investment of $800,000 in projects that create at least 10 full-time jobs. Eliminating the program would not only face legal obstacles but also political and economic resistance.

“Donald Trump will face major political backlash if he tries to eliminate EB-5 because these investments help many states finance developments and create jobs,” Sariol adds.

1. Legal Barriers for the “Gold Card”

According to immigration law experts, the president does not have the authority to repeal EB-5 through executive order. Article 1, Section 8 of the Constitution grants Congress exclusive power over immigration laws, meaning that any proposal must go through a legislative process.

“Any attempt to eliminate EB-5 will face immediate legal action,” warn attorneys Kate Kalmykov and Jennifer Hermansky from Greenberg Traurig. They also emphasize that the EB-5 Reform and Integrity Act of 2022 ensures that all applications filed before September 30, 2026, must continue to be processed. This protects current investors and makes it unlikely that a “Gold Card” could immediately replace EB-5.

Frank Sariol considers the proposal legally unsound and facing serious political obstacles. “It’s not as simple as signing an executive order. The EB-5 program was approved by Congress and has Senate backing. Any attempt to eliminate it will face immediate legal challenges,”

Mateo Galati emphasizes: “The Executive Branch cannot create new visa programs by decree. Even if Trump takes unilateral action, he will face immediate legal challenges.”

2. Will There Be Demand for a $5 Million “Gold Card”?

Sariol also doubts that Trump’s proposed new program will succeed. “There aren’t enough millionaires willing to pay $5 million just to obtain residency in the U.S.,” he states.

Mateo Galati reinforces this point: “The idea that 10 million people would be willing to pay $5 million for a Gold Card is unrealistic. EB-5 has never reached its annual cap of 10,000 visas, even with a significantly lower investment threshold.”

Jennifer Hermansky points out that other countries offer more attractive alternatives for investors: “Programs like those in Portugal, Canada, and the United Kingdom require significantly lower investments and offer more attractive tax advantages. The U.S. would lose competitiveness if it raises the cost of its investor immigration program.”

Comparison with other investment programs shows that the U.S. could be at a disadvantage:

• Portugal: Residency with a €500,000 investment in real estate.
• Canada: Residency with lower investment requirements and more flexible tax conditions.
• United Kingdom: More accessible investment schemes with a clear immigration process.

3. Economic and Political Impact of the Change

The EB-5 program has been crucial in financing real estate and commercial projects in the U.S. If it were eliminated without a proper transition, it could negatively impact:

• Real estate developers: Many projects depend on EB-5 funding, and its elimination would put new construction projects at risk.
• Small businesses: EB-5 investments have created thousands of jobs, and a $5 million investment barrier could significantly reduce the number of investors.

Kate Kalmykov warns about the negative economic impact: “Eliminating EB-5 would mean losing a key source of foreign direct investment that has helped fund infrastructure and development projects in multiple states. Without a viable replacement, a critical funding gap would emerge.”

4. Political Opposition and Legal Challenges

According to Sariol, eliminating EB-5 would have serious political consequences for Trump. “Senators from states benefiting from the EB-5 program will not allow it to be eliminated without opposition.”

“This program has been crucial for development and job creation in many areas of the U.S.”

Additionally, legal challenges are likely if the “Gold Card” is implemented unilaterally.

“Trump has issued many executive orders that have been blocked in court. This could follow the same path,” concludes Sariol.

Galati adds that Congress is unlikely to approve the elimination of EB-5:

“The House of Representatives has a fragile Republican majority, and many senators will not want to negatively impact their states by eliminating a key source of funding.”

5. Strategies for Investors

Given the uncertain landscape, investors interested in the U.S. should consider:

Acting now: Submitting EB-5 applications before any potential changes.
Exploring other options: Canada and Portugal may offer viable alternatives.
Consulting legal experts: To ensure informed decision-making.

Kate Kalmykov suggests that investors should not wait to start their applications: “EB-5 remains the best option for foreign investors seeking U.S. residency. There is no guarantee that the program will stay the same in the future, so acting now is key.”

In conclusion, Trump’s Gold Card proposal has sparked controversy, but its viability remains highly uncertain. Legally, the president lacks the authority to unilaterally eliminate the EB-5 program, as it is a congressionally approved initiative backed by established law. Any attempt to repeal it without legislative support would face significant judicial and political obstacles.

Beyond legal challenges, the economic implications of replacing EB-5 with a $5 million investment threshold are substantial. The current EB-5 program has long served as a key driver of foreign direct investment, job creation, and real estate development across the U.S. Increasing the investment requirement to such a high level would likely deter potential investors, particularly when other countries offer more accessible residency-by-investment programs with competitive tax structures.

Politically, eliminating EB-5 without a clear and viable alternative would alienate stakeholders in states that rely on foreign investment for economic growth. The real estate and business sectors, which benefit from EB-5 capital, would strongly oppose abrupt changes. Moreover, any shift in immigration policy will depend on congressional negotiations, partisan interests, and legal proceedings—a complex process unlikely to be resolved in the short term.

For investors, the uncertainty surrounding the Gold Card proposal underscores the importance of acting proactively. While EB-5 remains in effect, those considering U.S. residency through investment should not delay their applications, as policy shifts could occur depending on future legislative developments. Strategic planning and legal consultation are crucial to navigating potential changes in the investor immigration landscape.

If you’re looking to make your EB-5 investment, discover Archer Place by BAI Capital—USCIS-approved and located in a TEA zone (across from the University of Florida). It qualifies for the minimum $800,000 investment and offers an annual return of 4.9% on your investment. Fill out our contact form, and an agent will reach out to you soon!