US court strikes down steep EB-5 fee hikes; restores pre-April 2024 charges
In a major relief for foreign investors who had opted for the investment-linked green card (EB-5) program, a US district court has struck down the steep filing-fee hikes imposed in April 2024, reinstating the earlier fee schedule with immediate effect.
The ruling issued recently by US District Judge Charlotte Sweeney held that the US Citizenship and Immigration Services (USCIS) had unlawfully increased EB-5 fees without completing the statutory ‘fee study’ required under the EB-5 Reform and Integrity Act (RIA). A class action suit is on the cards to recover the excess fees paid by investors.
Matthew Galati, one of the attorneys who represented American Immigrant Investor Alliance (AIIA) and other plaintiffs in this case, said the judgment underscores that US immigration agencies are not above the law. “These fee raises were brazenly illegal and at odds with the RIA,” Galati said, adding that the ruling “restores the EB-5 fees to their pre-April 2024 levels.”
To illustrate: the fee forfiling Form I-526E (initial EB-5 application), which in April 2024 was hiked by 204% to $11,160 will now be reinstated at $3,675. Similarly, the fee for Form I-829 (to remove conditions on permanent residency) will now be reset to $3,750 from the existing $9,525. However, a new fee rule proposed by the Department of Homeland Security once it is finalised and implemented could change things again in the coming months, as this rule proposes a fee of $9,625 and $7,860 respectively.
The EB-5 programme offers foreign nationals a path to a US green card by investing $800,000 to $1.05 million in job-creating projects and generating at least 10 full-time American jobs. Over 90% of investors now participate through regional centres that pool capital into large developments. Despite the high investment, interest from Indian H-1B workers and high-net-worth individuals has grown because EB-5 provides a far shorter wait time than traditional employment-based green cards where the wait runs into decades. Successful applicants first receive a two-year conditional green card before applying to remove conditions and obtain permanent residency.
AIIA has obtained data under the Freedom of Information Act, according to which from April 1, 2022 to January 31, 2025 the total number of I-526/I-526E petitions filed were 9,878, of which 1,790 (18%) were from India. While Indians were the second largest contingent, China led significantly with 5,162 petitions (constituting 52%).
Ishaan Khanna, president at AIIA pointed out that the judgment is notable for two reasons: “The court explicitly held that AIIA had legal standing to represent EB-5 investors harmed by the fee hikes—rejecting the government’s argument that the Alliance could not sue because it is not itself an investor. Second, the judge quoted AIIA’s argument that it was preposterous to claim investors suffered no injury when USCIS doubled fees without completing the mandatory fee study—a point the court endorsed in its order.” Khanna added out that the Department of Justice has confirmed that the old fee schedule—pre-April 1, 2024—is now legally in effect.
What's next?The litigation is ongoing, even as the ruling has placed a stay on the fee hikes. Plaintiffs and the government are required to submit a joint status report by Jan 2026. With hundreds of investors having paid the higher fees, AIIA is now exploring a potential class-action lawsuit seeking restitution for overpayments made since April 2024. There may also be further legal twists as the Department of Homeland Security could appeal the stay to the 10th Circuit Court of Appeals.
The ruling issued recently by US District Judge Charlotte Sweeney held that the US Citizenship and Immigration Services (USCIS) had unlawfully increased EB-5 fees without completing the statutory ‘fee study’ required under the EB-5 Reform and Integrity Act (RIA). A class action suit is on the cards to recover the excess fees paid by investors.
Matthew Galati, one of the attorneys who represented American Immigrant Investor Alliance (AIIA) and other plaintiffs in this case, said the judgment underscores that US immigration agencies are not above the law. “These fee raises were brazenly illegal and at odds with the RIA,” Galati said, adding that the ruling “restores the EB-5 fees to their pre-April 2024 levels.”
To illustrate: the fee forfiling Form I-526E (initial EB-5 application), which in April 2024 was hiked by 204% to $11,160 will now be reinstated at $3,675. Similarly, the fee for Form I-829 (to remove conditions on permanent residency) will now be reset to $3,750 from the existing $9,525. However, a new fee rule proposed by the Department of Homeland Security once it is finalised and implemented could change things again in the coming months, as this rule proposes a fee of $9,625 and $7,860 respectively.
The EB-5 programme offers foreign nationals a path to a US green card by investing $800,000 to $1.05 million in job-creating projects and generating at least 10 full-time American jobs. Over 90% of investors now participate through regional centres that pool capital into large developments. Despite the high investment, interest from Indian H-1B workers and high-net-worth individuals has grown because EB-5 provides a far shorter wait time than traditional employment-based green cards where the wait runs into decades. Successful applicants first receive a two-year conditional green card before applying to remove conditions and obtain permanent residency.
AIIA has obtained data under the Freedom of Information Act, according to which from April 1, 2022 to January 31, 2025 the total number of I-526/I-526E petitions filed were 9,878, of which 1,790 (18%) were from India. While Indians were the second largest contingent, China led significantly with 5,162 petitions (constituting 52%).
Ishaan Khanna, president at AIIA pointed out that the judgment is notable for two reasons: “The court explicitly held that AIIA had legal standing to represent EB-5 investors harmed by the fee hikes—rejecting the government’s argument that the Alliance could not sue because it is not itself an investor. Second, the judge quoted AIIA’s argument that it was preposterous to claim investors suffered no injury when USCIS doubled fees without completing the mandatory fee study—a point the court endorsed in its order.” Khanna added out that the Department of Justice has confirmed that the old fee schedule—pre-April 1, 2024—is now legally in effect.
What's next?The litigation is ongoing, even as the ruling has placed a stay on the fee hikes. Plaintiffs and the government are required to submit a joint status report by Jan 2026. With hundreds of investors having paid the higher fees, AIIA is now exploring a potential class-action lawsuit seeking restitution for overpayments made since April 2024. There may also be further legal twists as the Department of Homeland Security could appeal the stay to the 10th Circuit Court of Appeals.
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