Annual Limits Hit for EB3, EW, and EB5 Visas: What to Know

The U.S. immigration system has reached a critical point as annual limits for several high-in-demand visa categories have been hit. This development has a significant impact on employers, skilled workers, and investors seeking to obtain green cards through the EB-3, EW, and EB-5 visa programs.

The State Department's recent announcement has sparked concern among applicants and businesses alike, highlighting the ongoing challenges in meeting labour shortages and attracting foreign investment. We'll explore the significance of these annual limits, their effects on employers and applicants, and what to expect in the upcoming fiscal year.

Additionally, we'll discuss the role of the visa bulletin in tracking visa availability and how U.S. Citizenship and Immigration Services processes these applications in light of the current situation.

Understanding EB-3, EW, and EB-5 Visa Categories

The EB-3 visa grants permanent residency to skilled workers, professionals, and unskilled workers. Approximately 40,000 EB-3 visas are available each year. Skilled workers must have at least two years of job training or experience, while professionals need a U.S. baccalaureate degree or foreign equivalent. Unskilled workers, also known as "other workers," perform jobs requiring less than 2 years of training.

The EB-5 visa, introduced in 1990, is designed for immigrant investors. It requires a capital investment of $1,050,000, or $800,000, in targeted employment areas. Investors must create or maintain at least ten full-time jobs for U.S. workers. The investment can be made directly in a new commercial enterprise or through a regional centre.

Both visa categories offer permanent residency benefits, including the ability to bring spouses and unmarried children under 21 to the United States.

Annual Limits and Their Significance

The Immigration and Nationality Act (INA) imposes strict annual limits on employment-based immigrant visas. For the EB-3 category, 28.6% of the worldwide employment-based visa limit is allocated each fiscal year, with a maximum of 10,000 visas available for the EW category. The EB-5 category receives 7.1% of the total employment-based visas.

These limits have already been reached for fiscal year 2024. U.S. embassies and consulates worldwide will not issue any more visas in these categories until October 1, 2024, when the new fiscal year begins. This pause affects employers and workers in the application process, highlighting the high demand for these visas.

The State Department's Visa Bulletin plays a crucial role in determining visa availability. It publishes cut-off dates that govern which applicants are eligible to file for adjustment of status or receive permanent resident status. Visa retrogression can occur when demand exceeds supply, typically towards the end of the fiscal year.

Implications for Employers and Applicants

The annual limits on EB-3, EW, and EB-5 visas have significant implications for both employers and applicants. For employers, the visa cap creates uncertainty in recruitment efforts, especially for H-1B visas. In fiscal year 2024, USCIS received 780,884 registrations, with 758,994 deemed eligible. This high demand often results in a lottery system, making it challenging to predict application success.

Employers face lengthy procedures for securing visas and work permits, leading to delays in onboarding talent. Additionally, immigration law compliance requires meticulous attention to detail, and extensive paperwork and strict deadlines complicate the hiring process.

For applicants, the visa limits mean longer wait times, particularly for those from countries with high demand, such as India and China. The backlog in some categories is so significant that USCIS and DOS already have sufficient applications to use up all available visas for several future fiscal years.

What to Expect in Fiscal Year 2025?

As the fiscal year 2024 comes to a close, attention turns to the upcoming fiscal year 2025. The annual limits for EB-3, EW, and EB-5 visa categories will reset on October 1, 2024. This reset allows U.S. Citizenship and Immigration Services to resume approving adjustment of status cases, while embassies and consulates can once again issue immigrant visas in these categories.

The State Department anticipates that Final Action dates will advance at the start of the new fiscal year, but these movements will depend on actual immigrant visa demand. For the H-1B visa category, employers should begin evaluating their needs for the fiscal year 2025, as USCIS typically opens registration at the beginning of March.

What Employers & Investors Should Know?

The annual limits on EB-3, EW, and EB-5 visas have a significant impact on the U.S. immigration landscape. These caps create challenges for employers seeking skilled workers and investors looking to contribute to the American economy. The situation underscores the need for a balanced approach to immigration policy, one that addresses labour shortages while maintaining the integrity of the visa system.

As we look ahead to the new fiscal year, applicants and employers must stay informed about visa availability and policy changes. The reset of visa numbers in October 2024 offers a fresh opportunity for those affected by the current limits. To stay updated on EB-3 and EB-5 visa developments, readers are encouraged to follow Pine Visa for the latest content. 

In the meantime, applicants should prepare for potential shifts in visa processing and remain adaptable in their immigration strategies.

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