Pacific Northwest EB-5 Regional Center Inc v. Noem

District Court, W.D. Washington·Decided September 15, 2025·No. 2:25-cv-00597·Unknown

Opinion

UNITED STATES DISTRICT COURT AT SEATTLE PACIFIC NORTHWEST EB-5 REGIONAL CASE NO. C25-0597-KKE CENTER, et al., ORDER GRANTING DEFENDANTS’ Plaintiff(s), MOTION TO DISMISS v.

KRISTI NOEM, et al.,

Defendant(s).

Michelle Darnbrough is an immigrant investor whose visa petition was revoked by the United States Citizenship and Immigration Services (“USCIS”) in April 2025. Plaintiffs1 contend that USCIS’s reasons for revoking Darnbrough’s petition amounts to a new rule that is inconsistent with longstanding prior agency policy and was applied in violation of the Administrative Procedure Act (“APA”). Dkt. No. 9.2 The Government3 filed a motion to dismiss, contending 1 Plaintiffs are a group of business entities and individuals: the individuals are Darnbrough and her immediate family members and the entities that Darnbrough directly or indirectly invested in.

2 This order refers to documents on the docket by CM/ECF page number. To account for the numbering regimen of the first amended complaint (Dkt. No. 9), this order will refer to paragraphs in that document by page number as well as paragraph number. 3 This order collectively refers to Defendants — the Secretary of the United States Department of Homeland Security, the Acting Director of the United States Citizenship and Immigration Services (“USCIS”), and the Chief of USCIS’s Immigrant Investor Program Office — as “the Government.” that because Darnbrough’s administrative appeal of her visa revocation is ongoing, the Court cannot review USCIS’s reasons for revoking Darnbrough’s visa at this time. Dkt. No. 13. The Government’s arguments are persuasive. Because the Court finds that Plaintiffs’

claims challenge a “rule” enacted in the context of an individual adjudication, Darnbrough’s failure to exhaust her administrative remedies with respect to that adjudication is fatal to those claims. Accordingly, the Government’s motion to dismiss will be granted, and the complaint is dismissed without prejudice and without leave to amend for failure to exhaust. I. BACKGROUND4 The Immigration Act of 1990 created a new preference allocation of visas (“EB-5” visas) for immigrants who have invested, or are in the process of investing, a designated amount of lawfully obtained capital in a new commercial enterprise (“NCE”), if that investment will create at least 10 jobs for qualified United States workers. See 8 U.S.C. § 1153(b)(5). An investor who

is granted an EB-5 visa may obtain lawful permanent resident status for themselves and their immediate family. Dkt. No. 9 at 7 ¶ 12. To qualify for an EB-5 visa, a foreign national must invest or be in the process of investing $1 million, but if the investment is made in a “targeted employment area” (“TEA”), then the minimum investment amount is reduced to $500,000. 8 U.S.C § 1153(b)(5) (2019); 8 C.F.R. § 204.6(f)(2) (2019).5 A TEA is “an area that, at the time of investment, is a rural area or is designated as an area that has experienced unemployment of at least 150 percent of the national average rate.” 8 C.F.R. § 204.6(e).

4 For purposes of resolving the motion to dismiss, the Court assumes the facts alleged in the operative complaint are true. Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001). Thus, this section is largely taken from Plaintiffs’ first amended complaint. Dkt. No. 9.

5 The 2019 monetary thresholds are referenced here because they were in effect at the time that Darnbrough’s visa petition was filed. See Dkt. No. 9 at 13 ¶ 43. The monetary thresholds have increased since the time period relevant to this case: the general minimum investment required is now $1,050,000, with a reduction to $800,000 if the NCE is located in a TEA or in an infrastructure project. See 8 U.S.C. § 1153(b)(5)(A) and (C). In 1992, Congress expanded the EB-5 visa program via “regional centers,” which are entities organized for the promotion of economic growth. See 8 C.F.R. § 204.6(m). To obtain a designation as a regional center, an economic entity must demonstrate that it will promote

economic growth and create jobs. Id. § 204.6(m)(3)(i)–(v). USCIS reviews applications for designation as a regional center. Dkt. No. 9 at 8 ¶ 17. After USCIS approves a regional center designation application, the regional center is then authorized to sponsor job-creating EB-5 projects and to recruit foreign investors to contribute capital to those projects. Id. at 8 ¶ 19. Individual investors in a project sponsored by a regional center may receive credit for jobs generated indirectly as a result of their investments. 8 C.F.R. § 204.6(g), (j). In order to obtain lawful permanent resident status via the EB-5 visa program, the immigrant investor must file an Immigrant Petition by Alien Entrepreneur on Form I-526 with USCIS, and must demonstrate eligibility both at the time of filing and at the time of USCIS adjudication. Id. §§ 103.2(b)(1),

204.6(a). In 2022, the EB-5 regional center program was modified via the EB-5 Reform and Integrity Act (“RIA”), 8 U.S.C. § 1153. The RIA imposed new reporting and eligibility requirements on regional centers as well as their investors, designed to “strengthen oversight and combat fraud.” Behring Regional Ctr. LLC v. Mayorkas, No. 22-cv-02487-VC, 2022 WL 2290594, at *2 (N.D. Cal. June 24, 2022). The RIA also includes an exhaustion requirement for judicial review of EB- 5 determinations, indicating that with few exceptions, “no court shall have jurisdiction to review a determination under this paragraph until the regional center, its associated entities, or the alien investor has exhausted all administrative appeals.” 8 U.S.C. §1153(b)(5)(P)(ii). In this case, Plaintiff Pacific Northwest EB-5 Regional Center (“Pacific Northwest RC”)

is a nonprofit entity created in 1991 and its application for regional center designation was approved in 2013. Dkt. No. 9 at 9 ¶ 23, 10 ¶ 29. Pacific Northwest RC sponsors NCEs that create jobs by helping truck drivers purchase environmentally compliant trucks, using capital contributed by EB-5 visa investors. Id. at 2 ¶ 6. The truck drivers then become members of an NCE, Plaintiff Green Truck IX Limited Partnership, which is associated with Pacific Northwest RC. Id. at 2 ¶ 6,

5 ¶ 2. Green Truck Fleet members haul freight throughout a designated five-state region (Washington, Idaho, Montana, Oregon, and California), although Pacific Northwest RC and the NCEs it sponsors are headquartered in the Port of Bellingham, Washington. Id. at 2 ¶¶ 5, 7; 3 ¶ 8. In the regional center designation letter, USCIS found that Pacific Northwest RC will principally be doing business within a TEA …. However, investors with related Form I-526 petitions must establish that at the time of investment or at the time of filing the immigrant petition, as applicable, the geographic area in question qualified as a TEA. A geographic area that once qualified as a TEA may no longer qualify as employment rates or population increases over time.

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