Da Fonseca v. Emmel

CourtDistrict Court, District of Columbia
DecidedFebruary 9, 2024
DocketCivil Action No. 2023-3300
StatusPublished

This text of Da Fonseca v. Emmel (Da Fonseca v. Emmel) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Da Fonseca v. Emmel, (D.D.C. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

VAGNER TAVARES DA FONSECA, et al.,

Plaintiffs, v. Civil Action No. 23-3300 (JEB)

ALISSA EMMEL, Chief, Immigrant Investor Program Office, United States Citizenship and Immigration Services, et al.,

Defendants.

MEMORANDUM OPINION

Plaintiffs here are members of the da Fonseca family, foreign nationals residing in

Miami. Seeking EB-5 “Immigrant Investor” visas, they made a substantial investment in a U.S.

business and submitted the required Form I-526 petitions to the United States Citizenship and

Immigration Services in November 2019. Having heard nothing since and tired of waiting, they

ultimately brought this suit in July 2023 to compel USCIS to adjudicate their petitions. They

contend that the agency has unlawfully delayed the processing of their Form I-526 petitions,

which has caused them serious injury, and that USCIS has otherwise acted arbitrarily and

capriciously. Defendants now move to dismiss. Having determined that the da Fonsecas’

allegations do not carry the day, the Court will grant the Motion.

I. Background

The Court shall briefly canvass the statutory background of the EB-5 Visa Program

before turning to the facts at hand. For the latter task, it draws from the Complaint and its

1 attachments, as it must at this stage. See He Depu v. Yahoo! Inc., 950 F.3d 897, 901 (D.C. Cir.

2020).

A. Legal Background

In 1990, Congress established the EB-5 visa program, making visas available for a

certain number of immigrants each year who help create jobs for American workers by investing

in American enterprise. See Immigration Act of 1990, Pub. L. No. 101-649, § 121(b)(5),

104 Stat. 4978, 4989 (1990) (codified at 8 U.S.C. § 1153(b)(5)). Two years later, Congress

opened a new path to the EB-5 visa: the “Pilot Immigration Program” authorized by Section 610

of the 1993 Appropriations Act, Pub. L. 102-395, 106 Stat. 1828, 1874 (1992) (repealed by EB-5

Reform and Integrity Act of 2022, Pub. L. 117-103, § 103(a), 136 Stat. 1070, 1075 (2022)

(codified at 8 U.S.C. § 1153(b)(5)(E))). Under the Pilot Program, immigrant investors could

“satisfy the EB-5 employment-creation requirement by creating jobs indirectly” — that is, by

making an investment of a certain size through a designated “regional center.” Bromfman v.

USCIS, 2021 WL 5014436, at *2 (D.D.C. Oct. 28, 2021); see also USCIS, EB-5 Immigrant

Investor Pilot Program, https://perma.cc/NTQ8-H7HT. Section 610 had two subsections:

§ 610(a), which authorized “set[ting] aside visas for a pilot program” in principle, and § 610(b),

which specified limits on how long the Pilot Program would run and how many visas could be

set aside.

Congress has repeatedly renewed the Pilot Program — now better known as the EB-5

Regional Center Program — by amending § 610(b) each time the period for which it had

authorized the Program elapsed. See, e.g., Visa Waiver Permanent Program Act, Pub. L. 106-

396, § 402(a), 114 Stat. 1637, 1647 (2000) (extending visa set-aside period to ten years). After

authorization lapsed in June 2021, however, Congress declined to amend § 610(b) as it had in the

2 past and instead pursued more substantial revisions to the Program. The result was the EB-5

Reform and Integrity Act, which introduced various reforms to the EB-5 visa system, including

the repeal of § 610 and the reauthorization of the Regional Center Program through 2027. See

§ 103, 136 Stat. at 1075; 8 U.S.C. § 1153(b)(5)(E) (codifying Act). The Act, notably, was not

signed into law until March 15, 2022, which meant that the EB-5 Program’s statutory

authorization lapsed for a gap of about nine months between June 30, 2021, and that date. See

Da Costa v. Immigr. Inv. Program Off., 80 F.4th 330, 337–38 (D.C. Cir. 2023) (explaining

timeline). This lapse is a focus of Plaintiffs’ claims.

To apply for an EB-5 visa through the Regional Center Program, immigrant investors

must first file a Form I-526 petition. See 8 CFR § 204.6(a); Hulli v. Mayorkas, 549 F. Supp. 3d

95, 98 (D.D.C. 2021). USCIS must then adjudicate the petition before the immigrant investor

may apply for a visa granting her conditional lawful-permanent-resident status. Hulli, 549 F.

Supp. 3d at 98. After a period of conditional lawful permanent residency, she may file an I-829

petition to remove the conditions, at last becoming an unconditional lawful permanent resident of

the United States. Id.

Because the Immigration and Nationality Act limits both the absolute number of visas

that may be awarded each year and the proportion of visas that may go to applicants from a given

country, demand for visas from certain countries of origin may exceed supply. See

8 U.S.C. §§ 1151–2. When this happens, some applicants must be put on a waiting list. See

8 U.S.C. § 1153(e); 22 CFR §§ 42.52–.54; MTD at 3. This waiting list — at least as judged by

median processing times — has grown unusually long in recent years. See ECF No. 2 (Am.

Compl.), ¶¶ 3–4. In January 2020, USCIS dropped its prior “first-in-first-out” policy for

adjudicating petitions on the waiting list and instead switched to a policy of prioritizing the

3 processing of petitions from countries where visas are immediately available under the INA’s

restrictions. See USCIS, USCIS Adjusts Process for Managing EB-5 Visa Petition Inventory

(Jan. 29, 2020), https://perma.cc/E484-FVRL. In practice, this policy means that Applicant X —

who filed her petition earlier than Applicant Y, but is immigrating from a country that has

already met its annual visa cap — may find that Applicant Y has his petition processed first.

USCIS’s rationale is that because Applicant X would have to wait to be eligible for a visa even if

her petition were approved, prioritizing her petition over Applicant Y’s does her no good and

wastes processing time that could be better spent elsewhere. See id.

B. Factual Background

Plaintiff Vagner Tavares da Fonseca, a citizen of Brazil, hopes to make a life for himself

and his family as lawful permanent residents of the United States. See Am. Compl., ¶ 18; ECF

No. 1 (Compl.), Exh. B (Declaration of Vagner Tavares da Fonseca). The da Fonsecas invested

$500,000 in an Illinois restaurant through a designated EB-5 regional center, see Am. Compl.,

¶ 18, and filed their Form I-526 petition on November 20, 2019. Id., ¶ 2. What followed for

Plaintiffs, as for many other applicants, was a long wait. See id., ¶¶ 3, 6 (alleging that USCIS’s

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