Investors File Lawsuit Against DHS to Stop EB-5 Regional Center Decertifications – Work Visas

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A group of investment and capital firms filed a lawsuit on May 24, 2022 against the Department of Homeland Security, arguing that when United States Citizenship and Immigration Services (USCIS) revoked the certification of existing regional EB-5 centers, they violated the Administrative Procedure Act and misinterpreted the EB-5 Reform and Integrity Act of 2022, which was enacted following an expiration of authority for the EB-5 Regional Center program. Plaintiffs say that by categorically decertifying more than 600 existing EB-5 Regional Centers and requiring them to recertify, USCIS “gutted” the program and determined that an entirely new Regional Center program had been created instead. than following Congress’s intent to reauthorize the program with a few. changes and allow existing regional centers to continue their work.

Alleging that USCIS’ action was “unlawful for a host of reasons,” the plaintiffs said the agency’s action meant that “all existing regional centers, which already have billions of dollars in invested capital , ongoing development projects and investors awaiting a decision on their visa applications, must effectively suspend all revenue-generating operations (while maintaining regulatory obligations to existing investors) indefinitely until the USCIS approves their new applications At current processing rates, it will take more than a decade for more than 600 programs to be redesignated.

The plaintiffs are represented by H. Ronald Klasko and Daniel B. Lundy, of Klasko Immigration Law Partners LLP, and Paul W. Hughes, Andrew A. Lyons-Berg and Alex C. Boota, of McDermott Will & Emery LLP.

This is the second lawsuit challenging USCIS’ assertion that all regional centers must be redesignated. A preliminary injunction hearing in Behring Regional Center LLC v. Mayorkas, # 3-22-cv-02487-VC (ND Cal.), will take place on June 2.


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