$800,000 shortcut: Wealthy Indians buying their way past H-1B hurdles; Donald Trump’s ‘Gold Card’ adds twist

MUMBAI: With a waiting queue running into several decades for an employment-linked Green Card, a growing number of Indians continue to resort to a faster way to live permanently in the US.

The investment-linked Green Card program (EB-5) comes in handy for those H-1Bs who can afford it—despite the significant investment involved, a wait-time of a few years compares favourably with an endless wait for the coveted Green Card. The EB-5 program also finds favour among high networth individuals (HNIs) in India, who are looking at securing their children's future in America. Investors initially obtain a conditional Green Card, which is later converted into a permanent Green Card.

Applicants are required to invest $800,000 (about Rs 7.1 crore) or $1,050,000 (about Rs 9.3 crore), depending on the project's type and/or location, and must create or preserve at least 10 full-time American jobs. Most investors route their funds through regional centers (USCIS-designated entities) that pool EB-5 capital into large-scale projects. Over 90% of EB-5 investments in recent years have been made through these centers rather than via direct investments.

Gold Card versus EB-5

Soon after being sworn in as US president, Donald Trump announced he would launch a ‘Gold Card'; commerce secretary Howard Lutnick added this could replace the EB-5 program with Gold-Card funds going directly to the US govt. This led to jitters among the EB-5 investors and those aspiring for a Green Card under this investment-linked route.

Recently, on Sept 19, Trump signed an executive order to introduce the ‘Gold Card' visa program. Individuals wishing to qualify for Gold Card must make an unrestricted gift of $1 million (about Rs 8.4 crore) to the US Department of Commerce. If a corporation or similar entity makes the gift on behalf of the individual, the required amount rises to $2 million (about Rs 16.8 crore).

The modalities of the Gold Card are yet to be rolled out. A key difference between the two programs lies not just in the amounts to be paid, but the fact that the Gold Card entails a ‘fee', whereas the EB-5 program requires an ‘investment'—with a return on capital.

As things stand, the long-term future of the EB-5 program remains unclear. Immigration attorneys point out that the EB-5 Regional Center (RC) Program has been reauthorised until 2027 by the EB-5 Reform and Integrity Act (RIA) of 2022. Those who have invested, or plan to invest, before Sept 2026 will be protected from future lapses in the programme owing to the RIA's grandfathering clause. The clause seems to have eased initial jitters among aspiring investors. Many of India's high networth families are turning to this path to secure long-term US residency for their kids. Mid-career professionals already in the US on H-1B visas—where Green Card backlogs stretch to decades—are increasingly joining them.

EB-5's rising momentum

According to US Citizenship and Immigration Services (USCIS) data, the EB-5 program drew $4.1 billion in the first three quarters of FY2025— nearly matching investment for the entire previous year.

Since the EB-5 Reform and Integrity Act (RIA) came into effect in 2022, around 1,050– 1,150 Indians have filed EB-5 applications, according to USCIS filing data. This places India as the second-largest EB-5 applicant group globally, accounting for roughly 20– 22% of all new post-RIA filings. The demand has remained consistent month-to-month, driven by both H-1B families already in the US facing decades-long Green Card wait times and by high networth families in India planning long-term residency and education pathways for their children.

"Most people still believe that once their child gets into a decent US university, they can build a career there," said Piyush Gupta, vice-president of CanAm Enterprises, which operates several licensed regional centers. However, uncertainties arising out of ever-changing and tightening H-1B policies prompts many to explore EB-5, he added.

For Prahlad Purohit, a 43-year-old Google engineer from Mumbai, the decision was driven by family rather than finance. After nearly a decade in the US, he feared his two India-born children would lose their dependent status when they turned 21. "My son couldn't even apply for internships because he wasn't a resident," Purohit said over a call from San Francisco. "Both my children grew up here, they don't know the system in India. That's when I chose EB-5."

Speaking to TOI on a Zoom from Mountview, California, he recalls how he selected his investment. "It's like the Wild West, with many claiming they're the best and promising exorbitant returns on top of the Green Card—from almond farms to hotel chains," he said. "I finally chose a real estate development in Manhattan that was building a corporate skyscraper."

For those outside the US, financing the investment from India involves navigating complex regulatory limits. Immigration lawyer Sukanya Raman, who works with Davies & Associates, said: "The current Liberalised Remittance Scheme (LRS) allows only $250,000 (around Rs 2.1 crore) per person per year to be sent abroad," she said.

The EB-5 program requires an investment of $800,000 or $1,050,000. "Thus, in most cases, working members of a household give a tax-free monetary gift to their family members. Funds are clubbed together to meet the investment required under EB-5."

Under the Regional Center Program, investors' funds are pooled into large-scale development projects — from renewable energy plants to hotels, restaurants and logistics hubs. These centers act as intermediaries between American developers and foreign investors, lending money at lower interest rates than banks. "Developers find EB-5 capital attractive because it's cheaper, while investors meet the job-creation requirement," Gupta said.

But the financial risk is real. Once invested, the money must legally remain "at risk". Investors are first granted conditional residency for two years, during which USCIS verifies payroll records and project accounts before approving permanent Green Cards. "If the project fails before any work begins, or if it doesn't create enough jobs, the Green Card can be denied," Raman explained.

That uncertainty doesn't deter everyone. "We focus on sectors with consistent demand—student housing, battery storage, oil terminals—where economic cycles have less impact," Gupta said.

Yet, even the best due diligence can't erase all risk. One early EB-5 participant, who requested anonymity, recalled investing in a solar manufacturing firm in 2010. "When cheap Chinese panels flooded the market, the company folded," the investor said. "We recovered only about 40% of our capital—but at least the Green Cards came through."

Despite the high approval rate for applications, the EB-5 route remains a high-stakes bet: a blend of financial investment, immigration strategy, and faith in the American market. As Gupta put it, "For many of our clients, this isn't about returns—it's about certainty. They'd rather invest in a project than a house, if it means their family never has to rely on the H-1B visa lottery again."