EB-5 Grandfathering Explained: Why 2026 and 2027 are Critical for Investors
The modern EB-5 landscape was reshaped by the EB-5 Reform and Integrity Act of 2022 (RIA). While the RIA brought stability and oversight to the program, it also introduced two critical non-negotiable deadlines that have profound implications for prospective investors. These two deadlines are September 30, 2026 and September 30, 2027. The distinction between these dates is essential for everyone considering the EB-5 path to a United States Green Card.
Grandfathering Clause and the 2026 Deadline
Historically, the EB-5 regional center program was subject to frequent and disruptive lapses in authorization. These lapses caused confusion and placed investors in limbo, which often resulted in the suspension or denial of their applications.
The Reform and Integrity Act sought to rectify this systemic problem by adding a grandfathering clause into law. This clause provides a crucial layer of protection for investors who file their I-526 (direct investment) or I-526E (Regional Center program) petitions before September 30, 2026. This protection is the guarantee that the investor's application will continue to be adjudicated regardless of whether the program is suspended, amended, or terminated.
Filing before September 30, 2026 locks in the investor's place in the program and insulates them from future political or legislative changes. This is the single most compelling reason for new investors to act with urgency in the beginning of 2026.
Importance of 2027
The grandfathering deadline is set for 2026, but the current authorization for the EB-5 regional center program extends until September 30, 2027. For those who file after the 2026 cutoff, their investment may be safe, but their path to a green card becomes contingent on Congress reauthorizing the program in 2027. If your investment is made after the grandfathering date, your green card could be in limbo.
RIA introduced a mechanism for the minimum investment threshold to be adjusted for inflation every five years, with the first adjustment scheduled for January 1, 2027. The current minimum investment amount is $800,000 for Targeted Employment Areas. Experts anticipate a significant upward adjustment at the start of 2027.
If investors file before September 2026, they effectively lock in the current lower investment amount, providing a substantial financial advantage before the increase takes effect.
The Urgency of Due Diligence
Once more potential investors become aware of the grandfathering deadline and the impending investment increase, we expect a significant surge in I-526/I-526E filings leading up to September 30, 2026. This anticipated rush underscores the need for immediate action, particularly given the complexity of the initial application phase.
The most time-consuming component of the EB-5 process is the preparation of the Source of Funds documentation. This process requires meticulously tracking the legal source and path of investment capital, which often involves complex financial histories, transaction tracking, and international transfer histories. This process takes time because it often doesn't come out clean. Tracking funds is a detailed and demanding task which requires substantial time commitments.
For potential investors, the next 18 to 24 months are not a period for passive consideration of the EB-5 program but for aggressive due diligence. Starting the process now—vetting a project and formally engaging experienced immigration counsel to begin the Source of Funds documentation—is the only way to ensure the petition is filed before the September 30, 2026 grandfathering deadline.
This proactive approach can secure adjudication certainty and the current more favorable investment threshold. The decision to start the process now will make all the difference between a protected and predictable path versus one that is filled with legislative uncertainty and higher investment thresholds.
Step-by-Step Process to Beat the 2026/2027 Deadline
Step 1: Locate an EB-5 Project
We are assuming the investor is going the Regional Center route because of processing times and ease. The EB-5 visa applicant must first find a suitable project after doing the necessary due diligence on the sponsoring regional center.
After finding a suitable project, regional center investors file Form I-526E. The initial petition also includes proving the Lawful Source of Funds. This documentation must trace the funds from their original source through any intermediate transactions and finally into the U.S. commercial enterprise.
The evidence typically includes:
• 5 years of tax returns
• Business registration documents
• Financial statements
• Bank records
• Any relevant legal or governmental documentation
The petition must demonstrate that the invested funds are "at risk," meaning the funds are committed to the enterprise and are not guaranteed to be returned.
Step 2: Two-Year Conditional Permanent Residency
After the approval of the I-526E petition, the investor and the investor's eligible family members (spouse and unmarried children under 21) are eligible to apply for conditional permanent residency. There are two paths available:
Path 1: Consular Processing (DS-260)
For investors residing outside of the United States, this involves filing the DS-260 immigrant visa application and attending a visa interview at a U.S. consulate in their home country.
Path 2: Adjustment of Status (I-485)
For investors already legally residing in the United States, they may file Form I-485, which is the application to register permanent residence or adjustment of status. They can file this concurrently with or after the I-526E petition as long as a visa is immediately available.
Successful applications after this process are granted a conditional green card which is valid for a period of two years. This signifies the beginning of the crucial job creation period and the final stage of the EB-5 process.
Step 3: The Conditional Period
The two-year conditional residency period is a time of monitoring and compliance. The investor must:
• Maintain their investment in the commercial enterprise
• Ensure the required job creation is met
• Ensure jobs created are full-time and sustained for the entire two-year conditional period
• Keep capital at risk and deployed throughout this time
Step 4: Removing Conditions (Form I-829)
The final step is the removal of the conditions on permanent residency. The investor must file Form I-829 (Petition by Investor to Remove Conditions) within the 90-day period preceding the second anniversary of receiving the conditional green card.
The I-829 petition serves as the final proof that the investor has fulfilled all program requirements. The investor must submit extensive evidence demonstrating three key points:
1. The investment was sustained throughout the two-year conditional period
2. The required 10 full-time jobs were created or maintained by the commercial enterprise
3. The commercial enterprise was established and operational as represented in the initial I-526E petition
If USCIS approves the I-829 petition, then the conditions are removed from the investor's green card and the investor and their qualifying family are granted unconditional permanent residency. USCIS often issues the permanent green card 4-6 months after the I-829 has been submitted.
Unconditional permanent residency allows the investor to live, work, and study permanently in the United States and eventually pursue U.S. citizenship, which is typically five years after obtaining conditional residency.
Investors typically get their EB-5 capital back around year 5 after their conditional residency ends and the I-829 petition is filed or approved.
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The opinions expressed on this website are solely those of the author/presenter. The information provided is for general informational purposes only and should not be considered professional or legal advice. Student EB5 and its contributors do not endorse or take responsibility for any actions taken based on the information presented here. Visitors are strongly advised to consult with qualified immigration attorneys and financial advisors before making any EB-5 investment decisions or taking any actions based on the content on this website.
