Last week, President Donald Trump introduced a new project under which he plans to bring wealthy foreigners to the United States. This new project involves a “Gold Card” that would allow investors to obtain U.S. citizenship in exchange for a $5 million investment.
“They’ll be wealthy, successful, and they’ll be spending a lot of money and paying a lot of taxes and employing a lot of people, and we think it’s going to be extremely successful,” Trump said last week in the Oval Office.
U.S. Secretary of Commerce Howard Lutnick said the “Trump Gold Card” would replace the EB-5 visa in two weeks. The EB-5 visa program was established by Congress in 1990 to encourage foreign investment.
How the Gold Card Differs from EB-5?
Lutnick clarified that while the Gold Card is essentially a green card (granting permanent residency), it would increase the cost for investors and eliminate the fraud and abuse that currently exist in the EB-5 program. Like other green cards, this new option would also provide a path to U.S. citizenship.
Since its launch in 1990, the EB-5 visa has allowed foreigners to obtain immediate green cards if they invested $1.8 million and created at least 10 jobs. This provided them a pathway to citizenship. Applicants for green cards otherwise usually have to wait several months or sometimes several years to get permanent residency.
According to the U.S. State Department, the EB-5 program is limited to 10,000 visas annually, of which 3,000 visas are reserved for individuals who invest in areas with high unemployment. However, Trump’s Commerce Secretary, Howard Lutnick, stated that the program is being exploited and is priced too low.
Trump Administration’s Justification
“The EB-5 program was filled with nonsense, fake claims, and frauds. It was a cheap way to get a green card. So, the president decided to abolish the program because it was ridiculous,” said Lutnick. “The gold card would increase the cost for investors and would eliminate fraud, while still offering a path to citizenship,” Lutnick stated. He also mentioned that “all applicants will be required to undergo a thorough vetting process to ensure that they are best global citizens.”
“It’s somewhat like a green card, but at a higher level of sophistication, it’s a road to citizenship for wealthy individuals and talented professionals. Wealthy people can sponsor talented individuals, meaning companies can pay for employees to enter the U.S. with long-term residency status,” he said.
Who Qualifies for a ‘Gold Card’ Visa?
Trump did not provide specific information about job creation criteria. Although the US Congress determines the criteria for citizenship, Trump says the “gold card” will not require Congressional approval.
Each application will cost approximately $5 million. Trump stated that his administration would provide more information in two weeks, at which point the visas would officially go on sale.
Green card holders, including EB-5 beneficiaries, typically have to live in the United States legally as permanent residents for up to five years before they can be eligible for citizenship. It is unclear whether gold card visa holders will have to wait less time to obtain citizenship.
Potential Risks and Controversy
Golden visa programs have been controversial globally because they may attract people looking to use them for illegal activities like money laundering or fraud. Additionally, they can contribute to increasing housing prices in big cities.
Similar concerns have been seen in many European countries, including Britain, the Netherlands, and Greece, which have ended their “Golden Visa” programs in recent years, as reported by Bloomberg.
Trump’s plan to introduce a golden visa without Congress approval could lead to legal and political controversies. However, he remains confident that the program will be successful and highly valued by wealthy investors.
(Credits: Al Jazeera & CNN)
