President Donald Trump has unveiled a new proposal to reform the way rich foreigners can become American citizens. He suggests the introduction of a “gold card” visa costing $5 million. The card would be a replacement for the current EB-5 Immigrant Investor Program. The aim is to entice wealthy people to invest in America.
The Current EB-5 Program
The EB-5 program started in 1990. It enables foreign investors to obtain a green card if they invest a large sum of money in U.S. companies. In particular, they have to invest at least $1.05 million, or $800,000 in high-unemployment areas. Their investment must result in the creation or retention of at least 10 full-time jobs for U.S. employees. This program has been criticized over the years as being cumbersome and vulnerable to fraud.
Introducing the ‘Gold Card’ Visa
President Trump’s new plan seeks to make it easier. The “gold card” visa would be priced at $5 million. Card holders would enjoy green card benefits and an easy route to U.S. citizenship. There would be no particular job creation requirement, unlike the EB-5 program. The administration hopes this will appeal to rich people who can make a big impact on the U.S. economy.
In a statement, President Trump stated, “We are going to be selling a gold card. We are going to be putting a price on that card of about $5 million.” He further stated that this card would grant green card benefits and a path to citizenship. The President hopes that rich individuals will immigrate to the U.S. by buying this card.
Potential Benefits
The government finds a number of benefits in this new visa. First, it may raise considerable revenue. If a large number of people buy the “gold card,” it may help to cut down the federal deficit. Second, it is meant to bring in people who will make huge financial contributions. Such people are likely to spend, pay taxes, and generate employment. Commerce Secretary Howard Lutnick stated that the program might bring in as much as $5 trillion, which would help cut down the national debt.
Criticism and Issues
There are, however, criticisms of the proposal. Others say that it benefits the rich and could draw in people of dubious backgrounds. For instance, when questioned if Russian oligarchs would be able to get the card, President Trump said, “Yeah, possibly. Hey, I know some Russian oligarchs that are very nice people.”
Critics also fear that the proposal could weaken the historic immigration system. By opening up citizenship to purchase, it could give the impression that American citizenship is on the auction block to the highest bidder. Plus, without mandates for job creation, there is concern about how much economic gain the program really has.
Comparison to Other Countries
Investor visa schemes are not an exclusive feature of the United States. Most nations provide similar avenues of residency or citizenship for affluent citizens. The United Kingdom, for example, provides a Tier 1 (Investor) visa, which calls for a big investment. The schemes are frequently accompanied by rigid rules to prevent abuse and allow economic benefits.
Next Steps
The “gold card” visa plan is in its infancy. President Trump said more information will be forthcoming in two weeks. The administration will have to overcome several issues, such as screening applicants and making sure the program serves the U.S. economy. It’s also uncertain how this plan will be accepted by Congress and the public.