Context:
President Donald Trump has announced a visa program called “Gold Card” for foreign investors seeking permanent residency in the United States and ultimately American citizenship.
More on the News
- The proposed “gold card” or “golden visa” will replace the existing EB-5 (employment-based, 5th preference) visa.
- The “gold card” can be bought for $5 million as a route to American citizenship.
- As per current scenario, US issues 10,000 EB-5 visas annually, with each country allocated a maximum of 7%.
- The EB-5 visa program has been criticised for permitting abuse and fraud.
- President Trump stated that the gold card would attract wealthy people and the money would be used to pay off the US’ debt.
- The gold card may allow companies like Apple to sponsor applicants with exceptional talent.
- There is scepticism that it will attract wealthy individuals at it could entail double taxation – at home and in the US. Also, significant changes to immigration policy require US Congress’ approval where the proposal may not get enough backers.
About Investment Visas:
- “Residence by investment” or “golden visas” enable high net-worth individuals to acquire temporary or permanent residency in a foreign country.
- It is a means to stimulate the economy by attracting foreign investments and augmenting government income.
- More than 100 countries around the world offer golden visas.
- Golden passports, or “citizenship by investment,” on the other hand, provide full citizenship rights.
Comparison with EB-5 Visa Program
| EB-5 Visa Program | Gold Card Visa Scheme |
| Green Card is issued | Gold Card is issued |
| Grants US residency with citizenship possible only by fulfilling certain conditions (e.g. 5 years of continuous residence) | Grants US residency and direct path to citizenship |
| Require investment of $800,000 (Rs 7 crore) to $1 million dollars (Rs 8.71 crore) | Require direct payment of flat fee worth $5 million (Rs 43.5 crore) |
| Investment should create at least 10 jobs | Need not create jobs |
| Longer processing time | Expedited residency and citizenship |
Concerns Raised
- Security Risks: Golden visas often facilitate tax evasion, money laundering and corruption, leading countries like UK and Netherlands to end or tighten their visa policies.
- Against Meritocracy: The program amounts to putting American citizenship on sale and favouring money over merit.
- Foreign Influence: Analysts warn that wealthy foreigners like Russian oligarchs could use gold cards as means to influence US’ domestic and foreign policy.
Challenges Ahead
- Legislative Challenges: A significant change in immigration policy would require approval by Congress. Despite Republican majorities, some may resist the idea of “selling” citizenship due to opposition from Democrats.
- Judicial Intervention: Legal challenges to visa programs may arise due to the complexities in the structure and functioning of the program specifically related to administration and potential impact.
- Public Opposition: Widespread public opposition and protest can take place due to concerns over equality and commodification of citizen rights among Americans.
Implications for Indians
- Reduce Residency Pathway: EB-5 program has become popular among Indians with 733 Indians getting residency through this route in FY24. Its scraping will close this route.
- Widened Diaspora Disparities: It would potentially widen the gap between affluent Indians who can afford to pay $5 million and skilled immigrants who cannot, influencing the broader Indian-American community dynamics.
- Longer Wait for other Visas: Gold card visas could increase the green card wait time for holders of other visas like the H-1B work visa.