LCR has gained insight that Congress will pass a new Continuing Resolution to extend the Federal spending deadline from February 18 until March 11, 2022. Since it appears the Omnibus spending bill is the likely vehicle for an amendment reauthorizing the regional center program, this new CR will add another short delay.
We recognize this is frustrating, but we are encouraged by the amount of activity on EB-5 reauthorization across multiple Congressional offices.
While we cannot predict what Congress will pass and are discouraged when we see others in the industry using rumors to promote their products or build membership, we can share a few insights that we hope you too will find encouraging:
- Key staff of Senators Grassley and Leahy are collaborating on an update to S.831. This legislation has been presented and debated in Congress and was only defeated by one vote on June 24, 2021.
- In the Senate Appropriations Committee, Senator Leahy, the Democratic majority Chairman, and Senator Shelby, the Republican minority leader, are both retiring next year. They are highly motivated to leave their mark on the Senate after 35 years of working together. They can secure part of their legacy through a multi-year Omnibus spending bill. This type of legislation is often termed as ‘must pass’ because of its importance to both political parties.
- Senator Cornyn, the Republican senior senator from Texas, and his staff are very supportive of these activities. In June, the Senator advocated from the Senate floor for the passage of S.831 when it was presented for unanimous consent.
- We believe that the Majority Leader of the US Senate, Senator Schumer of New York, will be supportive of the reauthorization efforts of Senators Grassley and Leahy.
- Both Republican and Democratic leadership in the Senate and the House want to pass an Omnibus spending bill in early March, which includes increases in Defense spending to support Ukraine.
These points demonstrate there is positive momentum and why LCR believes that the EB-5 Regional Center program is on a path towards reauthorization in March.
Clearly, a lot can happen in Congress as it negotiates a $1.4T spending bill spread over 5,000+ pages. Still, we know members of Congress from both parties want a reauthorization of the EB-5 Regional Center program which improves the program’s integrity provisions and provides additional funding to address processing times.