New regulations soon to be released will limit targeted employment areas (“TEAs”), which permit a $500,000 EB-5 investment. This is to eliminate “gerrymandering” districts. Creating oddly shaped political districts are often referred to as “gerrymandering”.
If gerrymandering is not used to discriminate minorities, then it is perfectly legal. Gerrymandering is used in projects to combine both high unemployment and low unemployment contiguous tracts.
Department of Homeland Security Secretary Johnson hopes to have new EB-5 regulations out by September. The USCIS has said the new regulations would be out by this summer. The TEA minimum investment amount will increase from 500,000 to 800,000.