The D.C. Circuit Court of Appeals ruled Thursday that more than 600 existing EB-5 regional centers must pay new annual monitoring and fraud reporting fees mandated by Congress in 2022, affirming a lower court decision that rejected the centers' exemption claims.
In *EB5 Holdings Inc. v. Joseph Edlow* (D.C. Cir. 2026), a three-judge panel led by Circuit Judge Karen LeCraft Henderson upheld the district court's conclusion that pre-2022 regional centers are not exempt from the new fee requirements imposed as part of congressional reforms to the immigrant investor program.
The case centers on the EB-5 program, which Congress established in 1990 as an employment-based, fifth preference visa program for immigrants who invest capital into regional centers that promote economic growth by creating jobs and spurring investment. For more than 30 years, the program has provided permanent resident visas to qualifying immigrant investors.
The legal dispute arose after Congress overhauled the EB-5 program in 2022 in response to widespread reports of abuse within the system. As part of these reforms, lawmakers mandated that regional centers participating in the program must contribute an annual fee specifically designated for monitoring and reporting fraud.
The central question before the appeals court was whether the 600-plus regional centers that had been active since before the 2022 reforms should be exempt from paying these new annual fees. The regional centers, represented by appellants including EB5 Holdings Inc., argued they should not be subject to the new fee requirements.
The district court for the District of Columbia initially ruled against the regional centers, concluding they were not exempt from the new fee obligations. The regional centers then appealed this decision to the D.C. Circuit, where the case was argued on Oct. 7, 2025.
Brad Banias represented the appellants and argued their case before the three-judge panel. The federal government was represented by Alexandra McTague, Senior Litigation Counsel for the U.S. Department of Justice, along with Yaakov M. Roth, Acting Assistant Attorney General, Glenn M. Girdharry, Assistant Director, and Alessandra Faso, Senior Litigation Counsel.
The appeals court panel consisted of Circuit Judges Henderson and Rao, along with Senior Circuit Judge Rogers. Judge Henderson authored the unanimous opinion for the court.
In affirming the district court's decision, the D.C. Circuit effectively upheld Congress's authority to impose the new fee structure on all participating regional centers, regardless of when they began operating. The court's reasoning suggests that the 2022 reforms apply broadly to all regional centers seeking to continue participating in the EB-5 program.
The decision represents a victory for the federal government's efforts to strengthen oversight and fraud prevention within the EB-5 program. The annual fees are specifically earmarked for monitoring and reporting fraud, addressing concerns that led Congress to overhaul the program in the first place.
The EB-5 program has long been a significant pathway for foreign investment in the United States, allowing immigrants to obtain permanent residency in exchange for substantial capital investments that create American jobs. However, the program has faced scrutiny over the years due to various abuse allegations that ultimately prompted the 2022 congressional intervention.
The new fee requirements are part of broader reforms designed to enhance program integrity and prevent fraudulent activities that have plagued the EB-5 system. By requiring all participating regional centers to contribute to fraud monitoring and reporting efforts, Congress aimed to create a more robust oversight framework.
For the hundreds of regional centers that have been operating since before 2022, the court's decision means they must now factor these additional annual fees into their operational costs. This could potentially impact the economics of some regional center operations and the investment opportunities they present to prospective immigrant investors.
The ruling also clarifies the scope of Congress's 2022 reforms, establishing that the new requirements apply uniformly to all regional centers regardless of their establishment date. This interpretation supports the federal government's position that comprehensive reform requires universal participation in the enhanced oversight mechanisms.
The case was initially filed in the U.S. District Court for the District of Columbia as case number 1:23-cv-01180 before proceeding to the D.C. Circuit as appeal number 24-5237. The appeals court's decision, issued on Feb. 13, 2026, concludes this phase of litigation over the fee requirements.
The decision may influence how other aspects of the 2022 EB-5 reforms are interpreted and implemented, as regional centers and the federal government continue to navigate the updated regulatory framework governing the immigrant investor program.