The Controversial Proposal of Selling Green Cards: Trump’s “Gold Card” Plan

In a bold and controversial move, former President Donald Trump has proposed a plan to sell green cards—specifically, a new type dubbed the “gold card”—for a staggering price of $5 million. This initiative, which aims to provide a pathway to U.S. residency and the ability to work and conduct business in the country, has raised eyebrows and sparked debates across various sectors, particularly in real estate.

The Genesis of the Gold Card Proposal

The idea of selling green cards is not entirely new, but Trump’s approach has garnered significant attention. Initially introduced by investment mogul Grant Cardone in December, the proposal aims to replace the existing EB-5 investor visa program. This program has been a crucial funding source for major real estate projects, allowing foreign investors to obtain U.S. residency in exchange for investments in American businesses.

The EB-5 program has facilitated the funding of iconic developments such as Manhattan’s Hudson Yards and the San Francisco Shipyard. However, the cost of entry for the EB-5 program is considerably lower, set at $1,050,000 for standard cases and $800,000 for targeted employment areas, according to the U.S. Citizenship and Immigration Services.

Economic Implications of the Gold Card

While the EB-5 program contributes approximately $5 billion to the U.S. economy, it is particularly vital for a select group of real estate developers. The ability to access cheaper capital through foreign investments can dramatically alter the financial landscape of large projects. As Matt Gordon, CEO of E3iG, aptly put it, “Cheap capital is the crack cocaine to the real estate industry.”

The introduction of a $5 million gold card could potentially shift the dynamics of real estate financing, making it more challenging for developers to secure affordable funding. This could lead to increased costs for construction and, ultimately, higher prices for consumers.

The Real Estate Market Reaction

The real estate market is already feeling the tremors of this proposed change. Lawrence Yun, chief economist at the National Association of Realtors, noted that potential gold card buyers, who can afford the hefty price tag, are likely to have additional resources to invest in real estate. This influx of wealthy buyers could exacerbate the already competitive ultra-high-end housing market, driving prices even higher.

Similar visa programs in countries like Portugal and Spain have historically led to increased housing prices, raising concerns about affordability for local residents. As Yun pointed out, “It will bring about more demand in the ultra-high-end of the real estate market.”

Legislative Hurdles Ahead

Implementing Trump’s gold card proposal is not a straightforward process. Abolishing an existing visa program and introducing a new one requires Congressional approval, a task that may prove challenging in the current political climate. The EB-5 program is set to expire in 2027, which means any changes may not materialize until then.

Concerns Over Ethical Implications

Critics of the gold card proposal have raised ethical concerns, arguing that it commodifies citizenship and undermines the foundational values of American democracy. Voting rights advocate Rotimi Adeoye described it as “a wholesale rewrite of what it means to be an American,” suggesting that citizenship should not be an asset reserved for the wealthy.

Moreover, the European Commission has previously warned that similar golden visa programs could facilitate money laundering, tax evasion, and corruption. This has led many European countries to halt or modify their programs, raising questions about the potential risks associated with Trump’s proposal.

Conclusion: A Divisive Proposal

Trump’s gold card proposal is a complex and divisive issue that touches on various aspects of American life, from immigration policy to real estate economics. As the debate continues, stakeholders from all sides will be watching closely to see how this proposal unfolds and what implications it may have for the future of U.S. immigration and the real estate market.

In a world where the cost of citizenship could soon be measured in millions, the question remains: what does it truly mean to be an American? As this proposal develops, it will undoubtedly continue to spark discussions about the values and principles that underpin the nation.