There are several reasons why it makes sense for prospective EB-5 to invest sooner than later. Those reasons include potential retrogression in the set-aside categories and the triggering of the grandfather clause in the EB-5 Reform and Integrity act of 2022 (RIA). Additionally, there is also the strong likelihood that the EB-5 investment amount will increase in 2027.
The RIA fundamentally changed how the EB-5 investment amounts are set and adjusted. Instead of leaving investment thresholds to regulatory discretion, Congress placed the amounts directly into statute and created an automatic inflation adjustment mechanism. As a result, the minimum investment amounts are no longer static. They are designed to increase periodically based on inflation.
Currently, the minimum investment amounts are $800,000 for investments in a Targeted Employment Area (TEA) or qualifying infrastructure project. These figures have applied since the law’s enactment in March 2022 and remain in effect through the end of 2026.
How the Five-Year Inflation Adjustment Works
The statute requires that investment thresholds be adjusted every five (5) years based on inflation. The first adjustment is scheduled to take effect on January 1, 2027, with subsequent adjustments every five years thereafter.
The calculation is tied to the Consumer Price Index for Urban Consumers (CPI-U). Specifically, the government measures the cumulative inflation from March 15, 2022 (the date of enactment), through the end of the five-year period. The adjusted amount is then rounded down to the nearest $50,000 increment.
Importantly, the TEA investment level is not adjusted independently. Instead, it is set at 75 percent of the adjusted standard investment amount. Once the calculation is complete, the Secretary of Homeland Security, through U.S. Citizenship and Immigration Services, publishes the updated figures in the Federal Register before they become effective.
This mechanism is automatic. It does not depend on agency discretion, political changes, or new legislation. If inflation has occurred over the five-year period, the investment thresholds will increase accordingly.
Are We Likely to See a $900,000 TEA Minimum in 2027?
Based on inflation trends since 2022, it is quite possible that the TEA threshold will increase to approximately $900,000 in 2027. Because the TEA amount is fixed at 75 percent of the standard minimum, the key question is how high the standard amount, which is currently $1,050,000, rises after applying cumulative CPI-U inflation.
If inflation from 2022 through late 2026 is substantial, as recent economic data suggests, the standard amount could increase significantly. Once adjusted and rounded down to the nearest $50,000, that revised figure could result in a TEA minimum that rounds to $900,000.
The exact figure will not be known until the official CPI-U data for the full adjustment period is finalized and the government publishes the new thresholds. While $900,000 is a realistic projection, it is not yet confirmed.
