Latest / IMI Podcasts / “Nothing Is As Simple As Trump Makes It Out To Be”: Experts Analyze Gold Card Plan

Transcript

“Nothing Is As Simple As Trump Makes It Out To Be”: Experts Analyze Gold Card Plan · IMI Podcasts

• 0:00
  SPEAKER_00: President Donald Trump has announced plans to replace the EB5 program with a new gold card, requiring a$5 million payment directly to the U.S.
• 0:08
  SPEAKER_00: government.
• 0:08
  SPEAKER_00: The proposal, which would offer a path to citizenship without taxes on foreign income, aims to attract wealthy global investors while generating substantial government revenue.
• 0:19
  SPEAKER_00: Commerce Secretary Howard Lutnik has now provided additional details, explaining that the administration will modify the EB5 rather than eliminate it.
• 0:29
  SPEAKER_00: He criticized the existing program as poorly overseen, poorly executed with investments that were often suspect and didn't really work out.
• 0:37
  SPEAKER_00: Leudnik indicated that he and Treasury Secretary Scott will design the EB5 investment model to create what he called a proper business.
• 0:47
  SPEAKER_00: David Lesperence, founder and managing partner of Lesperance and Associates, cautions that the program's implementation isn't as straightforward as it seems.
• 0:56
  SPEAKER_00: Quote, nothing is as simple as Trump makes it out to be.
• 1:00
  SPEAKER_00: Whether he can pass this by executive order or whether he needs to go to Congress is a constitutional issue, end quote, though he notes that with a compliant Republican majority in both houses, he can get it done.
• 1:13
  SPEAKER_00: Lesperan suggests that Trump might pursue both routes simultaneously to ensure implementation.
• 1:20
  SPEAKER_00: The administration's ability to bypass Congress remains questionable.
• 1:24
  SPEAKER_00: Rahul Sony, partner at Fragomen, points out that, quote, U.S.
• 1:28
  SPEAKER_00: federal immigration and nationality law is controlled by Congress and protected under the Constitution, quote, adding that Congress affirmatively reauthorized the EB5 Regional Center program through 2027 under the EB5 Reform and Integrity Act.
• 1:46
  SPEAKER_00: The program's long-term viability also depends on its implementation method.
• 1:50
  SPEAKER_00: If he Trump does it by executive order, a new president can cancel the program on day one, Lesperance warns.
• 1:58
  SPEAKER_00: He says a legislatively established program would provide more stability since a new administration would need to get congressional approval to kill it.
• 2:07
  SPEAKER_00: Philippe May, CEO of EC Holdings, expresses simple optimism about the program's prospects with a straightforward, I hope so.
• 2:16
  SPEAKER_00: He believes the program will endure beyond Trump's presidency because the Democrats are not as bad as the socialists in Europe.
• 2:24
  SPEAKER_00: Hence, the program will probably survive in one form or another.
• 2:28
  SPEAKER_00: One of the gold card's most attractive proposed features, exemption from U.S.
• 2:33
  SPEAKER_00: taxes on foreign income, faces significant obstacles.
• 2:37
  SPEAKER_00: L'esperance dismisses this promise as pure sales puffery since such a feature requires significant changes to the tax code and is extremely unlikely to get through.
• 2:49
  SPEAKER_00: Katie Annanina, CEO of Plan B Passport, expresses more optimism about potential tax reforms.
• 2:56
  SPEAKER_00: Quote, I am very hopeful about the end of citizenship-based taxation, end quote.
• 3:02
  SPEAKER_00: She says this would be a quote, huge step toward restoring personal liberties and allowing individuals to choose with whom they share the fruits of their labor, end quote, adding that such a change would also boost the gold card sales.
• 3:17
  SPEAKER_00: Philippe May agrees that the tax component is crucial, stating the$5 million price tag is perfectly reasonable if foreign income is tax exempt, as President Trump hinted.
• 3:28
  SPEAKER_00: The gold card's success will depend partly on its advantages over existing options.
• 3:32
  SPEAKER_00: According to L'Esporance, if the EB5 continues alongside the gold card, then the gold card program must have some distinct advantage in order to remain competitive.
• 3:42
  SPEAKER_00: He suggests eliminating country quotas could provide a processing speed advantage in Asian and other backlog markets.
• 3:50
  SPEAKER_00: Sony notes that Trump announced the gold card on February 25th, proposing a pathway to U.S.
• 3:56
  SPEAKER_00: citizenship for a$5 million investment that would eradicate issues of fraud associated with the current EB5 program.
• 4:05
  SPEAKER_00: He says that unlike the current program, Trump quote, did not mention any requirements of job creation, as is the pinnacle of the current EB5 process, end quote.
• 4:16
  SPEAKER_00: Sony indicates the programs might coexist rather than replace each other, creating another route to permanent residency and citizenship for ultra-high net worth investors.
• 4:27
  SPEAKER_00: He notes the$5 million price far exceeds donation options in other countries, positioning it as a premium option in the global market.
• 4:36
  SPEAKER_00: The donation model appeals to some experts.
• 4:39
  SPEAKER_00: Anna Nina, who had correctly predicted the price tag long before Trump announced it, finds the amount reasonable for a donation and hopes the program doesn't shift to an investment model, which she feels would be the wrong turn.
• 4:54
  SPEAKER_00: Anna Nina believes the gold card presents a welcome alternative to the problematic EB5 program.
• 5:00
  SPEAKER_00: For years now, the EB5 has been known for fraudulent schemes.
• 5:04
  SPEAKER_00: She says both sides of the administration have tried to fix it, which, in my opinion, was impossible under the existing policy.
• 5:12
  SPEAKER_00: She finds the new proposal promising, stating that having the straightforward path to a gold card with the right to apply for naturalization makes sense to me.
• 5:22
  SPEAKER_00: The gold card's streamlined approach could avoid bureaucratic inefficiencies Annanina warns against.
• 5:28
  SPEAKER_00: She hopes they don't fall back into old habits and hire 87,000 new gold card agents to process applications, suggesting the program could be a nice side hustle for the government if properly managed.
• 5:42
  SPEAKER_00: Experts offer different perspectives on what current EB5 applicants should do.
• 5:46
  SPEAKER_00: Sony reassures those in the pipeline that their applications should remain protected.
• 5:52
  SPEAKER_00: The EB5 Reform and Integrity Act maintains grandfathering provisions for investors who file before September 2026, he explains.
• 6:02
  SPEAKER_00: He notes that under the Department of State's upcoming visa bulletin, all nationalities, including India and China-born nationals, remain current through certain expedited regional center projects, making this an excellent time to apply.
• 6:16
  SPEAKER_00: In a recent hearing, Trump said he didn't plan on banning nationalities, but instead focused on individuals.
• 6:22
  SPEAKER_00: May advises those already in process to continue, while Lesperin suggests that interested investors keep their powder dry until they see the details on the gold card and the future of the EB5 program so they can make an informed decision.
• 6:38
  SPEAKER_00: Anna Nina takes a more critical stance toward the existing program, stating her advice is and has always been to not go through EB5.
• 6:46
  SPEAKER_00: I've never been a fan of the program, investing$1 million only to be treated as a political asylum applicant.
• 6:52
  SPEAKER_00: The gold card could significantly reshape the investment migration industry in the U.S.
• 6:58
  SPEAKER_00: Sony observes that this shift parallels trends in other jurisdictions, noting that in 2022, the UK ended its investment-based residency program, the EU adjusted or shut down various residency by investment schemes, and several Caribbean citizenship by investment programs tightened their requirements.
• 7:19
  SPEAKER_00: For firms specializing in U.S.
• 7:21
  SPEAKER_00: investment migration, adaptation will be essential.
• 7:24
  SPEAKER_00: May predicts that firms which are focused on U.S.
• 7:28
  SPEAKER_00: investor migration only need to reinvent themselves.
• 7:32
  SPEAKER_00: Whether migration firms will offer the gold card without traditional commission structures remains an open question.
• 7:38
  SPEAKER_00: Anna Nina states she would offer it because, quote, I represent the client, not the government, end quote, and argues that government commission disrupts the incentives, and in an ideal scenario, the industry would be able to sustain itself without relying on the kickback.
• 7:55
  SPEAKER_00: May points out that there are always administrative fees for the legal and documentation work of RCBI firms.
• 8:03
  SPEAKER_00: Lesperence notes that if, quote, the EB5 visa program is killed, then the option of commissions from regional centers becomes moot, end quote.
• 8:12
  SPEAKER_00: He ponders the question, quote, does the U.S.
• 8:16
  SPEAKER_00: government need salespeople to sell the gold card, or can it successfully go directly to the consumer?
• 8:22
  SPEAKER_00: End quote.
• 8:23
  SPEAKER_00: He points out that, quote, stakeholders such as EB5 salespeople in regional centers would become irrelevant if Trump kills the EB5 visa program, end quote.
• 8:34
  SPEAKER_00: He says they, EB5 stakeholders, will be extremely unhappy, but Trump will probably ignore them also, unless they offer some other benefit to him.
• 8:44
  SPEAKER_00: Public opposition appears manageable.
• 8:46
  SPEAKER_00: Lespurance acknowledges that there will be some public backlash from those who philosophically oppose the sale of U.S.
• 8:53
  SPEAKER_00: green cards, but doubts that this resistance will be effective in stopping Trump.
• 8:57
  SPEAKER_00: May expects only the usual rumbling from the political left, but even that, in a very limited fashion, as the U.S.
• 9:05
  SPEAKER_00: left is not anti-RCBI like the far left in Europe.
• 9:09
  SPEAKER_00: An Anina believes the program's survival beyond Trump's tenure is likely, stating that after a three-year track record, she doesn't see a solid reason for the government to cancel the EB5 program and that the gold card can act as another income stream and just another immigration program.
• 9:30
  SPEAKER_00: This episode first appeared as an article by Ahmada Bas on IMIDaily.com.
• 9:36
  SPEAKER_00: Subscribe for free to the IMI newsletter for breaking news and updates from the investment migration industry.
• 9:42
  SPEAKER_00: And upgrade your membership to IMI Pro to get access to our exclusive professional community, citizenship catalog, investment migration company Rolodex, private briefings, and more members only content.