Tushar Agrawal, et al. v. Joseph B. Edlow, et al.

District Court, N.D. California·Decided August 14, 2026·No. 5:26-cv-01400·Unknown

Opinion

TUSHAR AGRAWAL, et al., Case No. 26-cv-01400-EKL

Plaintiffs, ORDER GRANTING MOTION TO v. DISMISS IN PART

JOSEPH B. EDLOW, et al., Re: Dkt. Nos. 7, 11 Defendants.

In this case, the Court must decide whether United States Citizenship and Immigration Services (“USCIS”) can perpetually avoid adjudicating the immigration applications of individuals, like the plaintiffs here, who have invested a small fortune into the United States. Congress created the EB-5 visa program to expedite the immigration process for such applicants, and it tasked USCIS to administer that process. Yet, Plaintiffs Tushar Agrawal and Nidhi Jayapalan allege that Defendants have abstained from adjudicating their Form I-485 applications to register permanent residence, which have been pending for more than a year. Plaintiffs allege that USCIS’s abstention violates its statutorily conferred duty under the Administrative Procedure Act (“APA”) to adjudicate matters before it within a reasonable time. Plaintiffs argue that they have a right to adjudication through the APA and the Due Process Clause and seek an order compelling Defendants to adjudicate their applications. Defendants move to dismiss the complaint, claiming in part that the Court lacks jurisdiction over USCIS’s inaction. Mot. to Dismiss, ECF No. 7 (“Motion”). The Court carefully reviewed the parties’ briefs and heard argument on July 1, 2026. For the following reasons, the Court GRANTS in part and DENIES in part Defendants’ motion. Defendant USCIS is a sub-agency of the United States Department of Homeland Security responsible for processing and adjudicating immigration applications such as the Form I-485 applications to register permanent residence filed by Plaintiffs. Compl. ¶ 3, ECF No. 1 (“Compl.”). Defendant Edlow is the director of USCIS, sued here in his official capacity. Id. ¶ 4. Plaintiffs applied for permanent residence under the Employment-Based Fifth Preference (“EB-5”) program, created by Congress as “the Immigrant Investor Program” in the Immigration Act of 1990. Id. ¶ 13. The EB-5 program created immigrant visas “for foreign national investors who invest[ed] $1M – or $800k in certain high unemployment or rural areas – in a new commercial enterprise that [would create] at least ten jobs for American workers.” Id.; see also 8 U.S.C. § 1153(b)(5). In March 2022, Congress overhauled the EB-5 process through the EB-5 Reform and Integrity Act of 2022 (“RIA”). Compl. ¶ 14. Applicants can now file a Form I-526E immigrant petition by regional center investor and Form I-485 application concurrently so long as visa numbers are available. Id. Per counsel at argument, USCIS first approves a Form I-526E petition and then vets and interviews applicants before it approves a Form I-485 application. Approving a Form I-485 application adjusts the applicant’s immigration status, granting them conditional permanent residency in the United States. 8 U.S.C. § 1186b(a)(1). Congress expects EB-5 applications to be adjudicated within 180 days, on average. Compl. ¶ 17; accord RIA, Pub. L. No. 117-103, § 106(b)(2), 136 Stat. 49, 1104 (2022). For applicants like Plaintiffs here, Congress shortened the desired average timeline to 120 days. RIA § 106(b)(5). Plaintiffs, a married couple, are both non-citizens native to India currently residing in Santa Clara County, California. Compl. ¶¶ 1, 2. Before filing a petition or application, Mr. Agrawal “invested $800,000 in a new commercial enterprise located in a USCIS-designated regional center” with the effect of creating “at least 10 jobs for American workers.” Id. ¶ 22. On February 7, 2025, Mr. Agrawal filed a Form I-526E petition concurrently with his and his wife’s Form I-485 applications. Id. ¶ 23. USCIS approved the petition on July 29, 2025, identifying Mr. Agrawal’s visa classification as “Reserved: RR-6 Rural Principal Regional Center Investor.” Id. numbers were available when Plaintiffs applied, id. ¶ 24, Plaintiffs’ Form I-485 applications have been pending for over twelve months allegedly “without evidence of any substantive adjudicative progress,” id. ¶ 45. “USCIS has not provided any timeline or indication as to when these decisions might be made.” Id. ¶ 40. During this time, Plaintiffs allege that USCIS has adjudicated the applications of similarly situated applicants who applied after them. Id. ¶ 47. Plaintiffs further allege that USCIS has neither provided evidence of a rationale for its inaction, id. ¶ 45, nor indicated that it will act on the pending applications absent a court order, id. ¶ 50. Plaintiffs allege that they have suffered serious hardships because of USCIS’s inaction. Because of the uncertainty over their residential status, Plaintiffs have declined to travel internationally, limiting their ability to attend family events or care for their parents. Id. ¶ 27. Plaintiffs also allege difficulty in securing their desired professional opportunities due to their unsettled immigration status. Id. ¶¶ 28-30. Furthermore, allegedly because of USCIS’s elimination of automatic extensions of employment authorization, id. ¶ 33, Plaintiffs fear they may become ineligible for employment in the United States absent approval of their Form I-485 applications, id. ¶¶ 35-36. At the motion hearing, Plaintiffs also represented that they have spent approximately $15,000 on processing fees required by USCIS for adjudication. Plaintiffs allege that there is no administrative, statutory, or regulatory remedy for review under the Immigration and Nationality Act (“INA”) or the Code of Federal Regulations to address an applicant in Plaintiffs’ circumstances. Id. ¶ 9. Rather than a “process [where] individuals could schedule an appointment to speak with a USCIS officer in person at a local office,” id. ¶ 10, an individual must “call USCIS’s customer service, where an officer determines if an in-person appointment is necessary. Then, the individual must stand by for a return [call] anytime . . . over the next 72 hours[ ]. If the call is missed or the individual is driving at the time the call is received, the whole process must be reinitiated,” id. ¶ 11. As such, Plaintiffs claim that the Court is their only avenue of redress. Id. ¶ 12. They seek to compel USCIS to adjudicate their application, alleging violations of the APA, the Mandamus Act, and the Due Process Clause of the Fifth Amendment. Defendants move to dismiss the APA and Mandamus claims for lack of A. Motion to Dismiss for Lack of Subject Matter Jurisdiction “Federal courts are courts of limited jurisdiction.” Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375, 377 (1994). Under Federal Rule of Civil Procedure 12(b)(1), a court must dismiss a complaint if the plaintiff fails to demonstrate that the court has subject matter jurisdiction. Tosco Corp. v. Cmtys. for Better Env’t, 236 F.3d 495, 499 (9th Cir. 2001). In ruling on a Rule 12(b)(1) motion that raises a facial attack to subject matter jurisdiction, the court accepts “all factual allegations in the operative complaint as true and draw[s] all reasonable inferences in the plaintiff’s favor.” Searle v. Allen, 148 F.4th 1121, 1128 (9th Cir. 2025). B. Motion to Dismiss for Failure to State a Claim Under Federal Rule of Civil Procedure 12(b)(6), a court must dismiss a complaint if it fails to state a claim upon which relief can be granted. To avoid dismissal, the plaintiff must allege “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. T

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Tushar Agrawal, et al. v. Joseph B. Edlow, et al., (N.D. Cal. 2026).

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