What's happened
President Trump has proposed a new $5 million 'gold card' visa aimed at wealthy immigrants, replacing the EB-5 program. The initiative is expected to generate significant revenue for the U.S. government, but experts question its feasibility and potential demand. The program's details remain unclear as it awaits congressional approval.
What's behind the headline?
Economic Implications
- The gold card visa could potentially generate over $1 trillion if 250,000 applicants pay the $5 million fee, as suggested by Commerce Secretary Howard Lutnick.
- However, experts like Kristin Surak from the London School of Economics warn that similar programs in other countries have seen limited interest, often attracting only a few hundred applications annually.
Demand Concerns
- Current EB-5 visa data shows an average of 8,823 visas issued per year, raising doubts about whether the gold card will attract enough wealthy applicants.
- The high cost of the gold card may deter many potential immigrants, especially since many EB-5 applicants are not ultra-wealthy.
Political Context
- The proposal aligns with Trump's broader immigration strategy, which has focused on limiting pathways for undocumented immigrants while creating new avenues for wealthy individuals.
- The real estate industry, which has benefited from the EB-5 program, may resist changes that threaten their funding sources, indicating potential political pushback against the gold card initiative.
What the papers say
According to the New York Times, the gold card program is causing panic among EB-5 investors, with many rushing to apply before potential changes take effect. Sarah Kessler notes that the EB-5 program has been crucial for real estate developers, providing cheaper capital compared to traditional financing methods. In contrast, Axios highlights that realistic demand for the gold card may be limited, with experts suggesting that more Americans might seek to emigrate than foreigners looking to immigrate to the U.S. Tyler Cowen from Bloomberg argues that while the gold card could boost government revenue, it must not eliminate more affordable immigration pathways. The Independent raises concerns about the feasibility of attracting 250,000 applicants, given the current backlog of EB-5 applications. Overall, the sources present a mixed view on the viability and implications of Trump's proposed gold card visa.
How we got here
The proposed gold card visa is intended to replace the EB-5 investor visa program, which has been in place since 1990. The EB-5 program allows foreign investors to obtain U.S. residency by investing between $800,000 and $1.05 million in job-creating projects. Trump's plan aims to streamline this process while increasing the investment threshold significantly.
Go deeper
- What are the details of the gold card visa?
- How does the gold card compare to the EB-5 program?
- What are experts saying about the demand for this visa?
More on these topics
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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The United States EB-5 visa, employment-based fifth preference category or EB-5 Immigrant Investor Visa Program, created in 1990 by the Immigration Act of 1990, provides a method for eligible Immigrant Investors to become lawful permanent residents—info
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Howard William Lutnick is an American billionaire businessman, who succeeded Bernard Gerald Cantor as the head of Cantor Fitzgerald. Lutnick is the chairman and CEO of Cantor Fitzgerald and BGC Partners.
