New EB-5 Visa Bill Targets Affordable Housing as U.S. Pushes for Cheaper Homes

A new EB-5 visa bill may be crucial to resolving one of the worst affordability crises the U.S. housing market has seen in decades. Senator Ruben Gallego of Arizona has proposed to use the EB-5 investment program to reroute foreign capital into affordable housing projects in the United States. This would put additional pressure on supply and possibly reduce rental and homeownership costs across the country.

Policymakers are increasingly using immigration-linked investment tools to boost the U.S. housing market as mortgage rates remain high and housing inventory remains extremely low. The way foreign investors contribute to the development of American real estate could be drastically altered by this new EB-5 visa reform.

What Is the New EB-5 Visa Bill All About?

By investing in a U.S.-based business that generates at least ten full-time American jobs, foreign nationals can apply for a U.S. green card under the EB-5 visa program. While projects in rural or high-unemployment areas are eligible for a lower $800,000 EB-5 investment, the standard EB-5 investment threshold is currently $1.05 million.

Senator Gallego’s new EB-5 visa Bill would expand that lower $800,000 threshold to include:

• Rental housing construction

• Affordable housing rehabilitation

• Housing focused on primary residences only

This move directly ties the EB-5 investment program to the supply of affordable housing in the USA, rather than luxury real estate or commercial-only developments.

Why This EB-5 Visa Change Matters for the U.S. Housing Market

The U.S. housing market has been under extreme pressure due to years of underbuilding and rising interest rates. Home prices and rents have soared in almost every major metro area, making affordable housing USA one of the most urgent political and economic issues today.

By aligning EB-5 visa investments with housing supply expansion, lawmakers believe they can:

• Increase the number of affordable rental units

• Create thousands of construction jobs

• Stabilize long-term home prices

• Reduce pressure on working-class renters

Senator Gallego stated that directing EB-5 investment toward housing would “boost supply, lower costs, and create good-paying American jobs”—a powerful message as the 2026 midterm elections approach.

Faster Green Cards for EB-5 Projects Tied to Affordable Housing

Another major highlight of the new EB-5 visa Bill is faster green card processing for investors whose funds are used specifically for affordable housing USA projects.

This means:

• Quicker EB-5 green card approvals

• Priority USCIS processing

• Faster capital flow into construction projects

This incentive could significantly accelerate the development of new housing units across multiple U.S. cities facing severe shortages.

Political Pressure Builds Around Housing Affordability

For voters across the country, housing affordability has emerged as a major concern. The extent to which rising housing costs are impacting public opinion is demonstrated by recent Democratic wins in local elections. There is currently pressure on both sides to provide quick fixes for the housing crisis in the United States.

Early indications indicate that some segments of the real estate sector are in favor of the EB-5 visa reform, despite the fact that Republicans currently control the Senate. The plan has already received support from the National Association of Realtors, which claims it will enable cities, nonprofits, and builders to develop projects more quickly and affordably.

Current EB-5 Visa Rules and Recent USCIS Fee Rollback

Under today’s rules, the EB-5 visa is capped at roughly 7% of all employment-based green cards each year. In fiscal year 2023 alone, nearly 12,000 investors received conditional permanent residency through the EB-5 investment program.

In a major win for investors, USCIS recently rolled back its 2024 EB-5 fee increases after a federal court ruled the hikes unlawful. As a result:

• Form I-526 fee dropped from $11,160 to $3,675

• Other EB-5 related fees were also reduced

• Filings after November 26, 2025, now fall under the lower fee structure

This fee rollback—combined with the proposed EB-5 visa Bill—could trigger a powerful surge in EB-5 investment across housing and infrastructure.

Why Indian Demand for EB-5 Visas Is Exploding

Interest in the EB-5 visa for Indian investors is rising at record speed. According to the American Immigrant Investor Alliance (AIIA), Indian citizens filed over 1,200 EB-5 petitions in just four months of FY2025, surpassing every previous annual record.

The surge is largely linked to:

• Tighter U.S. student visa scrutiny

• H-1B work visa uncertainty

• Green card backlogs for Indian nationals

With the EB-5 green card offering a more direct route to permanent residency, many high-net-worth Indian families are pivoting toward EB-5 investment in the USA, especially with housing-focused protections now on the table.

What This Means for the Future of the EB-5 Program

If passed, this EB-5 housing Bill could permanently reshape how the EB-5 visa program operates. Instead of being tied mainly to luxury hotels and commercial properties, the future of EB-5 investment may now be anchored in affordable housing USA and urban redevelopment.

This shift would deliver a rare triple win:

•  Investors get faster EB-5 green cards

•  Cities get more affordable housing

•  Workers get stable American jobs

Also Read: US to Increase H-1B Visa Vetting Over Free Speech and Censorship Concerns in 2025

Last Thoughts

One of the biggest changes to U.S. immigration-related investment policy in recent years is the proposed EB-5 visa bill. Legislators intend to cool the overheated U.S. housing market, generate jobs, and open up quicker routes to legal residency by transforming the EB-5 investment program into a direct engine for affordable housing in the United States.

The EB-5 visa is once again emerging as one of the most potent—and lucrative—immigration routes in the US due to lower USCIS fees, increased Indian demand, and growing political urgency surrounding housing.