End of EB-5 visa: Why the $5 mn US 'Gold Card' blow hits rich Indians hard
Trump’s administration has repeatedly criticised the EB-5 visa, which was first introduced in 1990 to boost the American economy through job creation.
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By Surbhi Gloria Singh — New Delhi
4 min read | Last Updated : Feb 26 2025 | 4:34 PM IST
In an unexpected move, US President Donald Trump on Wednesday announced a new immigration programme offering a direct path to US citizenship for foreign investors willing to pay $5 million (approximately ₹43.7 crore). The "Gold Card" will replace the employment-based EB-5 visa programme. This comes as a blow for Indians who had started seeing the EB-5 visa as an alternative to the H-1B visa.
Gold Card replaces EB-5
Speaking from the Oval Office, Trump said the new scheme would allow investors to secure permanent US residency through a financial contribution.
“We’re going to be selling a Gold Card,” Trump said on Wednesday. “We’re putting a price on that card of about $5 million, and that’s going to give you green card privileges.”
Commerce Secretary Howard Lutnick, who stood alongside Trump, said applicants would be able to pay the sum directly to the US government.
“The president said rather than having this sort of ridiculous EB-5 programme, we’re going to end the EB-5 programme. We’re going to replace it with the Trump Gold Card,” Lutnick said. “They’ll be able to pay $5 million to the US government—not to skip vetting, of course. We’re going to make sure they are wonderful, world-class global citizens.”
Why the US 'Gold Card' blow hits rich Indians hard
“The increase from $1 million to $5 million may be the most obvious difference between the EB-5 programme and Trump’s ‘golden visa,’ but it is definitely not the most dramatic change,” said Russell A Stamets, partner at Circle of Counsels, to Business Standard.
“If Trump gives golden visa holders an exemption on their worldwide income outside of the US, it will make the $5-million price tag look like chaar anna (insignificant amount) for rich people who might otherwise be subject to US global taxation,” Stamets said. “Paired with Trump’s dial back on anti-bribery and anti-corruption laws and oversight, the golden visa may prove very attractive for a certain set of the global wealthy.”
Varun Singh, managing director of XIPHIAS Immigration, on the other hand, said the move could push Indian investors towards alternative global residency programmes.
“The removal of the EB-5 visa programme would be a severe blow to Indian investors, the US economy, and bilateral ties. It has been an economic driver, with Indian investors contributing billions of dollars to real estate, infrastructure, and technology sectors in the US,” Singh told Business Standard.
EB-5 could move Indians to alternative immigration programmes
“The EB-5 visa provided Indian families with a direct path to permanent residency, bypassing the long wait for H-1B and EB-2/EB-3 green cards. Many Indians have waited decades for US residency due to country-specific limits. Eliminating EB-5 would leave thousands stranded in limbo,” Singh said.
“Indian investors may now turn to other global residency programmes such as Greece’s Golden Visa, Portugal’s Golden Visa, and investor schemes in the UAE and Canada,” Singh added. “These countries provide attractive residency options with lower investment thresholds and faster processing times, making them viable alternatives for Indian high-net-worth individuals.”
Trump’s stance against EB-5 visa
Trump’s administration has repeatedly criticised the EB-5 visa, which was first introduced in 1990 to boost the American economy through job creation. The programme grants green cards to foreign investors who put in a minimum of $1,050,000—or $800,000 in economically distressed areas—while creating or preserving jobs in the US.
“The EB-5 programme is nonsense and fraud,” Lutnick said. “It was a way to get a green card that was priced too low. So the president said, rather than keeping this ridiculous programme, we’ll replace it with the Gold Card.”
The EB-5 visa has previously been linked to high-profile real estate projects, including those involving Trump family members. The scheme came under scrutiny during Trump’s first term, leading to calls for reform.
The programme was last renewed under former President Joe Biden in 2022, with increased investment requirements. An attempt by Trump’s administration in 2019 to raise the minimum investment for targeted economic areas to $900,000 was struck down by a federal judge in 2021.
While Trump has positioned the Gold Card as a better alternative, critics argue that it primarily benefits the ultra-wealthy while closing the door on those who invested in the US through EB-5.
“The EB-5 was subject to certain abuses, but it required showing that investment would create US jobs. The golden visa sounds more like a concierge service,” Stamets said. “Of course, less wealthy people who hoped to build businesses and lives in the US may be locked out of the new golden visa.”
