Public domain, via Wikimedia Commons

Senator Patrick Leahy (D-Vt) Public domain, via Wikimedia Commons

For the second time in less than 12 months, the EB-5 Immigrant Investor Program was extended as part of a federal spending bill that kept the government functioning.

Back in December Congress passed a spending bill that would run out at the end of last month. During the debates on the bill leading up to its approval, several members in Congress advocated reforming the program in order to address allegations of fraud. However, the EB-5 program was extended until September 30 with no changes.

The EB-5 Immigrant Investor Program allows those living in other countries to obtain a U.S. visa by investing a minimum of $500,000 into a new business venture that must create or preserve at least 10 full-time jobs for U.S. workers.

When Congress began working to prevent a government shutdown in September and pass another continuing resolution, discussion came up again of the EB-5 program and possible changes. Suggested reforms included raising the minimum investment to $800,000 and rewriting how the program evaluates Targeted Employment Areas (TEA), which are areas that an EB-5 investment would be most beneficial. These are supposed to be areas that are economically challenged, however, investors have found ways to get around the requirement that allows them to pour their money into more prosperous areas.

But none of those revisions passed, and the program was extended again, this time through December 9. The EB-5 program has been controversial in recent years as evidence of fraud has surfaced. In Vermont, a fraud investigation ended with a $13.3 million settlement.

Senator Patrick Leahy (D-Vt) has been an outspoken supporter of the program, but last month he spoke on the Senate floor and said it should not be continued without reforms.

“If this flawed program is not reformed, I believe it should end,” Leahy said. “I can no longer support a straight extension of this program.”

Several bills in both the House and the Senate have been introduced in the last year to reform the program. So far, none of them have passed either side of Congress. Do you think the EB-5 program should be extended? If so, does it need to be reformed? Let us know in the comments.