	Introduction

With the current economic downturn, Members of the 111 th Congress are likely to be faced with many policy options aimed at economic improvement. Foreign investors are often viewed as providing employment opportunities for U.S. citizens rather than displacing native workers. Yet, extending foreign investor visas provides several potential risks as well, such as visa abuses and security concerns. The central policy question surrounding foreign investors—and particularly legal permanent resident (LPR) investors—is whether the benefits reaped from allocating visas to foreign investors outweigh the costs of denying visas to other employment-based groups. Falling under the employment-based class of immigrant visas, the immigrant investor visa is the fifth preference category in this visa class. 111-83 , §548), extends the authorization of the Regional Center Pilot Program through September 30, 2012. Following the 2003 legislation, USCIS decided to develop a new unit to govern matters concerning LPR investor visas and investments. Since FY2004, an additional 1,901 immigrant investor visas have been issued. Nonimmigrant Investor Visas

When coming to the United States as a temporary investor, there are two classes of nonimmigrant visas which a foreign national can use to enter: the E-1 for treaty traders and the E-2 for treaty investors. The Department of Homeland Security (DHS) offers statistics on the admissions of nonimmigrants and their destination state. Table 3 indicates the destination states of nonimmigrant treaty trader and investor visa admissions into the United States for FY2008. According to published accounts, the Canadian investor visa was developed initially to attract investors from the British colony of Hong Kong. Both countries have shown an upward trend in immigrant investor visas since 2003. The investor visas offered by the United States operate on the principal that FDI into the United States should spur economic growth in the United States. According to the classical theory, if these investments are properly targeted towards the U.S. labor force's skill sets, it should reduce the migration pressures on U.S. workers. What is less clear from the empirical research is the degree to which potential migration provides any additional incentive for investment activity in the United States. For permanent migrants, however, the prospects for professional and social mobility are the main motivating factors. Administrative Efforts

In recent years, significant efforts have been made by administrative agencies to both promote investment by foreigners in the United States economy, and to close perceived loopholes for visa exploitation. A number of current investment projects are using LPR investor financing because it is less costly for the domestic investors. Current Legislation and Potential Issuesfor Congress

In the 111 th Congress, authorizing language in the Department of Homeland Security Appropriations Act, 2010 ( P.L. Philadelphia is one of the Regional Centers that has been most successful in attracting foreign investors through the EB-5 visa.
With the current economic downturn, Members of the 111th Congress are likely to be faced with many policy options aimed at economic improvement, including the possible consideration of amending visa categories for foreign investors. Foreign investors are often viewed as providing employment opportunities for U.S. citizens rather than displacing native workers. Yet, extending foreign investor visas provides several potential risks as well, such as visa abuses and security concerns. Thus, a potential policy question for Congress—and particularly legal permanent resident (LPR) investors—is whether the benefits reaped from allocating visas to foreign investors outweigh the costs of denying visas to other employment-based groups.
There are currently two categories of nonimmigrant investor visas and one category of immigrant investor visa for legal permanent residents (LPR). The visa categories used for nonimmigrant investors are: E-1 for treaty traders; and the E-2 for treaty investors. The visa category used for immigrant investors is the fifth preference employment-based (EB-5) visa category. According to Department of Homeland Security (DHS) statistics, there were 230,647 nonimmigrant treaty trader and investor visa arrivals in the United States in FY2008. For the same time frame, DHS reported the granting of 1,360 investor visas.
When viewed from a comparative perspective, the investor visas of the United States are most closely mirrored by those of Canada. The LPR investor visa draws especially strong parallels to the Canadian immigrant investor visa, since the latter served as the model for the former. Comparing the admissions data between these two countries, however, reveals that the Canadian investor provision attracts many times the number of investors of its United States counterpart. Yet, both countries showed an upward trend in immigrant investor visas in the last two years.
The investor visas offered by the United States operate on the principle that foreign direct investment into the United States should spur economic growth in the United States. According to the classical theory, if these investments are properly targeted towards the U.S. labor force's skill sets, it should reduce the international migration pressures on U.S. workers. To attract foreign investors, research indicates that temporary migrants are motivated most significantly by employment and wage prospects, while permanent migrants are motivated by professional and social mobility. Theoretically, however, it is unclear to what extent potential migration provides additional incentive for investment activity. Investors from developed countries may sometimes lack incentive to settle in the United States since they can achieve foreign direct investment (FDI) and similar standards of living from their home country. Yet, in cases where foreign investors have been attracted, the economic benefits have been positive and significant.
Immigrant investors have been subject to notable administrative efforts in the past couple of years. In 2005, DHS developed the Investor and Regional Center Unit (IRCU) to govern matters concerning LPR investor visas and investments to better adjudicate petitions and coordinate investments. In the 111th Congress, authorizing language in the Department of Homeland Security Appropriations Act, 2010 (P.L. 111-83, §548), extends the authorization of the Regional Center Pilot Program through September 30, 2012.