Over the weekend of May 5 Nicole Kushner Meyer—the sister
of Trump son-in-law Jared Kushner—was in Beijing seeking
Chinese investors for one of the Kushner family’s real estate projects.
Meyer made sure the wealthy attendees noticed the Kushners’ connection to the
White House and emphasized that investing in the project, a luxury apartment
complex in New Jersey, could win them the EB-5 visa, which allows rich
foreigners to buy themselves green cards. The Kushner gambit brought media
attention to the little-known program, a feature of the immigration system that
President Trump seems not to have criticized. But the program’s been around for
nearly three decades and has been tainted with corruption from the start.
Here’s a description in The Politics of Immigration, Chapter 4, “Yacht
People.”
Manhattan, an EB-5 “high unemployment area.” Photo: Shutterstock |
The Immigration Reform Act, signed by President George H. W.
Bush on November 29, 1990, created a new category of visa for millionaire
investors. Up to 10,000 immigrant visas a year were made available under the EB-5 category to anyone investing $1 million into a U.S. business and creating
at least ten jobs for U.S. citizens. The investment can be smaller—$500,000—if
made in rural or “high unemployment areas.”
“We’ve done a great job on boat people,” Harold Ezell,
former Immigration and Naturalization Service (INS) western regional
commissioner, said in 1991. “I see no problem with a few yacht people.” After
leaving his INS post in 1989, Ezell began marketing investor visas to wealthy
foreigners. Ezell was one of a number of government officials who pushed for
the investor visa program, then left for the private sector to reap profits
from it, as revealed in a February 2000 Baltimore Sun exposé.
Those profits were boosted when INS deputy general counsel
Paul Virtue issued legal opinions in 1993 and 1995 loosening the rules for the
investor visas. The controversial rules were reversed in late 1997, and the
scandal led the U.S. Justice Department’s inspector general to launch an
investigation in 1998 into the “appearance of impropriety” in the behavior of
high-level government employees. The investigation concluded that Virtue had
arranged special access to key agency officials for a private company, American
Immigration Services (AIS). The Inspector General’s office closed the case
without taking further action in October 1999, and its report was kept secret.
The program started off slowly but grew each year, from 179
visas issued in 2005 to over 3,000 in 2012. In 2014 the number of visas issued
reached the 10,000 maximum for the first time, with 9,128 of them going to
Chinese nationals. One favorite “high unemployment area” has been Manhattan’s
West Side, where some 1,200 Chinese millionaires have invested in the $20
billion Hudson Yards project. The Atlantic noted in 2015 that the
project actually “is on the edge of one of the richest neighborhoods in the
country.”
[We’re occasionally posting excerpts from the
new edition of The Politics
of Immigration: Questions and Answers, which is due out on May 22. You can
pre-order here or from your favorite bookseller.]
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