The U.S. Department of Homeland Security (DHS) has released a long-awaited proposed rule to implement the EB-5 Reform and Integrity Act of 2022. This 358-page proposal aims to formalize existing practices while introducing several new provisions that could shape how investors participate in the EB-5 Immigrant Investor Program. Although many elements simply codify what is already in place, the rule introduces important clarifications and structural changes that may influence investor behavior and regional center operations.

Key Investment Thresholds

One of the most notable features is the introduction of a $1.4 million minimum investment for high-employment areas. However, for most investors, the requirements remain unchanged. Investments in targeted employment areas (TEAs) or infrastructure projects stay at $800,000, while the standard amount remains $1,050,000.

In practice, this new higher tier is unlikely to attract significant interest, as the vast majority of investors historically choose lower-cost TEA investments. The rule mainly aligns regulatory text with what has already been applied since 2022 rather than introducing entirely new pricing.

Future Inflation Adjustments

The proposal confirms that investment thresholds will increase with inflation starting January 1, 2027, and will continue to adjust every five years. This creates a clear incentive for investors to act sooner, as future entry costs are expected to rise.

Two-Year Sustainment Requirement

A major clarification concerns how long investment funds must remain at risk. The rule confirms a two-year sustainment period, starting from when funds are deployed into a job-creating entity.

This is widely viewed as beneficial for investors, as it allows them to recover capital sooner once job creation requirements are met, even if immigration processing delays continue. Previously, funds often had to remain invested longer due to visa backlogs, requiring redeployment into new projects.

Investor Protections in Case of Failure

The rule strengthens protections for investors if a regional center is terminated or fails. Under the new framework, “good faith” investors are given a 180-day window to move their investment to another compliant project, while keeping their priority date.

Acceptance of Digital Assets

Another notable point is the recognition of cryptocurrency as an acceptable source of funds. While no detailed regulations are introduced yet, DHS acknowledges its use and invites public input, signaling a more flexible and modern approach to investment sources.

Changes for Regional Centers

Regional centers will face stricter oversight through a tiered penalty system. Violations may lead to fines, suspension, or even termination. DHS is also proposing fixed penalties for routine issues, such as late filings.

Additionally, the rule requires mandatory registration of promoters, enhanced audits, and stricter fund administration. While many of these measures already exist in practice, their formal codification increases compliance expectations.

Cost and Industry Impact

DHS estimates compliance costs at around $47,000 annually per regional center, but industry experts believe the real figure is higher. Smaller regional centers are expected to feel the greatest burden, as fixed compliance costs are harder to absorb compared to larger organizations.

Despite this, the overall impact may be moderate since many of these requirements have effectively been in place since 2022.

Timeline and What Comes Next

The public comment period runs until August 31, 2026. After reviewing feedback, DHS will issue a final rule, potentially with revisions.

This timeline coincides with two critical deadlines:

• September 30, 2026: End of grandfathering protections
• January 1, 2027: First inflation adjustment

These overlapping milestones are expected to accelerate investor demand in the short term, followed by a possible slowdown afterward.

Summary

The proposed DHS rule largely formalizes the EB-5 framework established in 2022 while introducing targeted updates and clarifications. Key highlights include a new high-tier investment category, confirmation of a two-year sustainment period, stronger investor protections, and stricter oversight of regional centers.

While the rule does not radically transform the program, it increases clarity, reduces uncertainty for investors, and raises compliance expectations for operators. In the near term, upcoming deadlines and future cost increases are likely to drive a surge in applications, shaping the next phase of the EB-5 program.