New EB-5 visa Bill pushes housing investment as US seeks cheaper homes

US Senator's proposal would extend the lower EB-5 investment threshold to rental and rehabilitation projects, with quicker processing for green card petitions tied to affordable housing

Arizona Senator Ruben Gallego recently proposed using an employment-based visa route to draw more foreign investment into the United States housing market, with a new Bill focused on expanding the role of the EB-5 immigrant investor programme in construction and rehabilitation projects. The move comes as Washington looks for ways to ease an affordability crunch created by years of underbuilding and high mortgage rates.

 

Gallego, a Democrat whose visits to key states this year prompted questions about a possible 2028 presidential run, introduced the legislation on Thursday. The proposal would amend the EB-5 programme to channel more capital specifically into housing supply.

 

 

“By steering more EB-5 investment towards housing, we can boost the housing supply, bring down costs, and create good jobs for American workers,” said Gallego, 46.

 

What the Bill proposes for EB-5?

 

The EB-5 programme allows foreign nationals to obtain permanent resident status by investing in a new commercial enterprise and creating at least 10 full-time jobs. The minimum investment stands at $1.05 million, or $800,000 for infrastructure projects or for ventures in a targeted employment area such as rural regions or places with high unemployment.

 

Gallego’s Bill would make the lower $800,000 threshold available to projects centred on the production, preservation, or rehabilitation of rental properties, as well as homes intended to be purchased only as principal residences. The Bill also sets out faster processing for applications connected to affordable housing.

 

Why the housing issue is politically charged?

 

Affordability has become a central concern ahead of the 2026 midterm elections. A run of Democratic victories in major local elections last month reflected how rising household costs remain a key pressure point for voters. Both parties are pushing proposals they believe could help bring prices down.

 

It is unclear whether the Republican-controlled Senate will take up the measure, though some industry groups have already offered backing. “This legislation gives builders, nonprofits and local partners the tools they need to bring projects online faster and at lower cost,” said Kevin Brown, president of the National Association of Realtors in a statement. He said the Bill would “help spur new construction, preserve existing affordable units, create jobs and expand the pathway to stable, attainable housing”. 

 

How the EB-5 rules work today?

 

The EB-5 category is capped at about 7 per cent of employment-based green cards issued each year and is subject to per-country limits. Nearly 12,000 people received conditional permanent resident status through the programme in fiscal year 2023.

 

In November, USCIS withdrew its 2024 fee increases for EB-5 petitions after a federal court in Colorado ruled the changes unlawful. Some fees had risen by more than 200 per cent. With the reversal in place, most payments must now match the earlier, lower levels.

 

• The fee for Form I-526, Immigrant Petition by Standalone Investor, has dropped from $11,160 to $3,675.

• Lower charges now apply across other EB-5 forms.

• Petitions postmarked on or before November 26, 2025, may still carry the higher fees, but anything filed afterwards will need to meet the reduced amounts.

 

USCIS has published updated forms and fee tables on its website. 

 

Why Indian interest is rising?

 

The American Immigrant Investor Alliance (AIIA) reports a sharp rise in demand from Indian nationals since April 2024, linking the increase to tighter controls on student and temporary work visas under President Trump.

 

“In the first four months of FY2025 alone, Indian applicants filed more than 1,200 I-526E petitions across reserved categories—more than any prior full year,” said Nicholas Mastroianni III, president and chief marketing officer of United States Immigration Fund, which operates EB-5 regional centres. 

 

AIIA figures released through the Freedom of Information Act show that Indian petitions since October 2022 have crossed 1,790.