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Alerts

U.S. District Court Vacates EB-5 Modernization Regulations

by Carolyn Lee
Jun 23, 2021

June 23, 2021 — The lawsuit Behring Regional Center LLC v. Chad Wolf (3:20-cv-09263-JSC) was decided yesterday, June 22, 2021. The order of the United States District Court (Northern District of California) vacated the November 2019 EB-5 regulations (“Modernization Regulations”) and remanded to the U.S. Department of Homeland Security (“DHS”).

The order set aside DHS Secretary Mayorkas’s ratification or adoption of the Modernization Regulations. However, the Court declined to enjoin or prohibit Secretary Mayorkas from reinstating the rule. Accordingly, the Modernization Regulations may be brought back. Appeal by the government is also possible.

This development sets up complex considerations, particularly given the June 30, 2021 Regional Center Program sunset.

Stay tuned.

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