Existing EB-5 Regional Centers need to re-certify, this is a spanner in the investment linked green card programme

MUMBAI: It was only last month that the US Congress reauthorized the 'EB-5 Regional Center Program', albeit with an increase in investment thresholds and more safeguards for investors.
However, an update on its website by the US Citizenship and Immigration Services (USCIS) on April 11, stating that all existing regional centers are no longer authorized and require re-designation has sent alarm bells ringing in this sector.
Lately, the EB-5 program has become increasingly popular among US based Indians owing to a short wait of ten odd years as compared to a decades long wait of obtaining an employment-based green card. High net-worth individuals in India have also invested in the EB-5 program.

Traditionally, under the EB-5 program 90% of investments are routed via regional centers that pool together investments and sponsor job creating projects; as opposed to the other available route of direct investment, where the investor sets up his own business in the US.
Invest in the USA (IIUSA), a trade association for the EB-5 Regional Center Program has voiced its concern over the requirement to re-certify and has sought a meeting with USCIS officials.
Requiring existing regional centers to re-designate is a process that will take many months or even years. “Such an extensive delay would thwart clear Congressional intent to reauthorize and reactivate a compliant Regional Center Program that provides so many obvious economic benefits to our nation,” states IIUSA in its letter to USCIS officials.
IISUA suggests that: On or after May 14, 2022, an existing regional center, in good standing as of June 30, 2021, on filing the requisite compliance documents and fees should be deemed redesignated and authorized to do business unless and until terminated by USCIS.
Meanwhile, one regional center – Behring, has filed a lawsuit in a US district court challenging the USCIS requirement relating to redesignation of existing EB-5 regional centers. This move is in violation of the Administrative Procedure Act and it contradicts the clear intent of the Congress, states Behring in its lawsuit complaint.