On March 21, 2025, IIUSA and DHS submitted a second joint status report detailing their ongoing but unsuccessful efforts to resolve their legal dispute over the EB-5 investment sustainment period rules. A joint status report is a document filed in court by both parties in a lawsuit to update the judge on the status of settlement discussions and outstanding issues that need to be resolved.
IIUSA’s Position:
IIUSA proposed temporarily pausing the lawsuit if USCIS removed the disputed policy regarding the sustainment period regulation from its website and committed to a timeline for creating new regulations.
Although IIUSA believes the current investment rule was not implemented correctly, they do not wish to disrupt investors who relied on it in good faith. For those who invested after the settlement, IIUSA suggests that they should be subject to the new rules USCIS establishes through the formal rulemaking process.
USCIS rejected this proposal and instead suggested putting the case on hold indefinitely without confirming when or if new rules would be finalized. IIUSA believes this would leave investors and the industry in limbo, so they are asking the court to move forward and decide on the case.
DHS/USCIS’s Position:
DHS, which oversees USCIS, wants to pause the lawsuit while they go through the process of creating new regulations. They estimate that a proposed rule could be released in November 2025 but have not committed to a firm deadline.
DHS also argues that setting strict timelines would be difficult and that making new rules apply to past investors could create legal issues. They believe continuing to follow the rulemaking process will eventually resolve the lawsuit.
Although, USCIS confirmed that no further offers can be expected in the negotiation process. However, if the court does not agree, DHS has offered to revise its website guidance to reflect existing laws better.
Our office is closely monitoring this ongoing lawsuit and will continue to provide updates as they become available.
For further questions or legal assistance, please contact Rakesh Patel, at rpatel@patellegal.com, Jacqueline Trevino, and jtrevino@patellegal.com.