The May 2026 US Visa Bulletin issued a Section E warning that demand from India in the EB-5 Unreserved category may force the U.S. State Department to retrogress the Final Action Date or render the category temporarily unavailable before fiscal year 2026 ends. The warning applies only to EB-5 Unreserved. The Reserved categories, Rural, High Unemployment Area, and Infrastructure, remain Current for India. The September 30, 2026 grandfathering deadline written into the Reform and Integrity Act of 2022 is the most consequential date for Indian investors evaluating EB-5.
The U.S. State Department’s May 2026 Visa Bulletin includes a direct warning relevant to Indian investors. As reported in Business Standard, Section E of the bulletin states that “sufficient demand and increased use by India in the EB-5 unreserved visa categories may necessitate retrogression of the final action date or render the category unavailable to maintain number usage within the FY 2026 annual limit.”
This is the first time in fiscal year 2026 that the State Department has issued a direct retrogression warning for India in EB-5 Unreserved. Below, Nicholas A. Mastroianni III, President and CMO of U.S. Immigration Fund, and Rohit Turkhud, Member at CSG Law, address the questions Indian investors are asking now.
Rohit Turkhud, Member, CSG Law:
It is important to note that the warning relates to the “Unreserved” category. The State Department has not commented on any backlog in the Reserved categories. We don’t know if that is an error, which is entirely possible, or if it reflects their correct concern.
Just knowing the large number of cases in the Reserved categories, it would not be surprising if they announce a cut-off date for those Reserved categories too. This could come to pass as early as June 2026. At this point every month could end up establishing a cut-off date.
Nicholas A. Mastroianni III, President and CMO, U.S. Immigration Fund:
For applicants tracking this themselves, the Visa Bulletin is published monthly at travel.state.gov. Section E is where the State Department’s Unreserved concern currently appears. The USCIS chart designation at uscis.gov/visabulletininfo determines whether applicants inside the United States can continue filing for adjustment of status. The clearest signal of change would be any specific date replacing the “C” notation under Final Action Dates for India in the Reserved categories.
Nicholas A. Mastroianni III:
FOIA data from USCIS shows that of approximately 13,520 EB-5 petitions filed worldwide between April 2022 and July 2025, India accounts for roughly 22 percent. That places India as the second-largest source country in the program after China.
Rohit Turkhud:
Several factors are driving the current demand: emotional readiness to do the EB-5; the applicant’s decision to make the U.S. their personal and career home for the foreseeable future; their economic ability to invest in EB-5; the huge backlogs in the EB-2 and EB-3 categories; access to capital through ESOPs and RSUs; and the sunset date of September 30, 2026.
Nicholas A. Mastroianni III:
The backlog point is particularly significant in context. The May 2026 Visa Bulletin shows EB-2 India at a Final Action Date of July 15, 2014 and EB-3 India at November 15, 2013. For an Indian professional filing today in either category, that represents a wait measured in decades.
Several recent policy changes have added to the pressure. The September 19, 2025 announcement of a $100,000 fee for new H-1B hires. The October 30, 2025 elimination of the automatic 540-day extension for H-4 EAD renewals. The weighted H-1B lottery that took effect on February 27, 2026. Rohit has described the combined effect of the H-1B and H-4 changes as “disastrous,” pointing to clients whose spouses have been stranded in India with cancelled visa appointments and no path back until 2027. He has also noted that F-1 applicant numbers have dropped by approximately 40 percent.
Rohit Turkhud:
A cut-off date changes one thing immediately for Indian applicants: the ability to apply for a U.S. green card at the same time as filing the EB-5 investor petition. Once a cut-off date is in place, that combined filing is no longer possible. There is a second chart the government sometimes permits as an alternative, but I would not advise anyone to rely on it when they have the option to file before a cut-off is announced.
One important distinction. The deadline that really matters under the current law is for filing the investor petition itself, not the combined green card application. The petition can be filed at any time on or before September 30, 2026, and once filed, it secures the applicant’s place in the queue. Not every applicant is in a position to file the combined application anyway. What protects their position for the long run is getting the investor petition in.
For those already in the system, having an approved investor petition is not the same as having a green card. I have seen cases where the green card application remains under review for over a year after the petition itself was approved. If an applicant is currently on an H-1B or similar visa, my general advice is to stay on that status through to the green card rather than depending only on the work authorisation that comes with EB-5.
Nicholas A. Mastroianni III:
For anyone planning to apply in 2026, the practical point is straightforward. India in the EB-5 Reserved categories (Rural, High Unemployment Area, and Infrastructure) remains at “C” for Current under the May 2026 Visa Bulletin. Filing today in a Reserved category locks in the applicant’s position before any cut-off can be established. Waiting means taking the chance that the situation changes first.
Rohit Turkhud:
That cut-off is the cut-off date in the Unreserved category, and not in the Reserved categories. The Reserved categories are still “C”.
Nicholas A. Mastroianni III:
Rohit’s clarification is the most important point in this conversation, because a great deal of commentary has treated the May 1, 2022 date as if it applies to all of EB-5 for India. Under the May 2026 Visa Bulletin, India in EB-5 Rural, High Unemployment Area, and Infrastructure remains Current on both the Final Action Dates chart and the Dates for Filing chart. An investor who files in a Reserved category today faces no cut-off wait.
With that in place, three things deserve weight in an investor’s assessment.
The first is source of funds documentation. Rohit has described the practical standard he applies before advising clients to wire funds as near-complete documentation, not the statutory “preponderance of evidence” threshold. For staggered payment cases, he has emphasised that investors need a roadmap for the remaining contributions and should not look to buy time on those commitments.
The second is the operational track record of the regional center. EB-5 is a five to seven year relationship. The investment is at risk under statute, and the program’s primary purpose is to obtain a U.S. green card, not to generate investment returns. At U.S. Immigration Fund, we have served over 6,000 EB-5 investors and their families since 2010 and continued to operate fully through the 2021 program lapse.
The third is category selection. Rohit has observed that Rural projects have been approved in under six months under the current process, with some approvals coming in as fast as two months. He has also pointed out that approval of the investor petition is not the same as issuance of the green card and has seen cases where adjustment of status has remained pending more than a year after the petition was approved.
Rohit Turkhud:
As best as one can guess from the trend over the last 11-plus years, EB-5 is and will continue to be a viable alternative for India-born applicants. I am very hopeful for the longevity of the EB-5 program, and why not?
It is the only program that brings money into the U.S. at no cost to taxpayers. It is the only program that creates jobs for U.S. workers. It is the only program that funds itself through USCIS filing fees. I cannot think of one good reason why it should not continue as a viable immigration program.
Nicholas A. Mastroianni III:
The September 30, 2026 grandfathering deadline is the most important date on the calendar for any Indian family considering EB-5. Petitions filed on or before that date are governed by the current rules, regardless of any negotiations for the program’s future after its September 30, 2027 sunset.
Rohit has put the practical point directly: no one should cross that September 30, 2026 deadline if they want to protect their EB-5 interests.
| Category | India Final Action Date (May 2026) | Status |
|---|---|---|
| Unreserved | May 1, 2022 | Backlog of approximately four years; retrogression flagged in Section E |
| EB-5 Rural (20 percent) | Current | Concurrent filing available |
| EB-5 High Unemployment Area (10 percent) | Current | Concurrent filing available |
| EB-5 Infrastructure (2 percent) | Current | Concurrent filing available |
Source: U.S. State Department, May 2026 Visa Bulletin.
What is EB-5 retrogression?
Retrogression occurs when the U.S. State Department moves a visa category’s priority date backward in the monthly Visa Bulletin. It happens when more applications are filed than there are available visa numbers in a fiscal year. Applicants whose dates were once current must wait until their priority date becomes current again before completing the green card process.
Has EB-5 retrogressed for India?
Not yet, as of the May 2026 Visa Bulletin. The State Department has issued a Section E warning that EB-5 Unreserved for India may retrogress or become unavailable before fiscal year 2026 ends. The Reserved categories remain Current for India.
What is the difference between EB-5 Reserved and Unreserved categories?
The Reform and Integrity Act of 2022 created three Reserved categories: Rural (20 percent of annual visas), High Unemployment Area (10 percent), and Infrastructure (2 percent). The Unreserved category receives the remaining 68 percent. Under the May 2026 Visa Bulletin, the three Reserved categories are Current for India while Unreserved sits at a Final Action Date of May 1, 2022.
What is the September 30, 2026 EB-5 deadline?
September 30, 2026 is the grandfathering cut-off under the Reform and Integrity Act of 2022. EB-5 petitions filed on or before this date remain governed by today’s program rules, including today’s $800,000 minimum investment. Petitions filed after this date will be subject to whatever framework Congress negotiates next.
Will the EB-5 minimum investment amount change?
The Reform and Integrity Act requires USCIS to adjust the minimum investment for inflation beginning January 2027. Petitions filed after the September 30, 2026 grandfathering cut-off will be subject to a higher minimum.
Can Indians on H-1B visas apply for EB-5?
Yes. H-1B holders in the U.S. can file an I-526E investor petition and, if the category is Current under the applicable Visa Bulletin chart, can file Form I-485 for adjustment of status concurrently. They receive employment authorization and travel authorization while the petition is pending. Rohit Turkhud’s general guidance is to stay on H-1B status through to the green card rather than relying solely on EB-5 work authorization.
What happens to Indian investors with already-filed EB-5 petitions if retrogression occurs?
Investors who have already filed an I-526E retain their priority date. The priority date determines their position in the queue. If retrogression occurs after filing, the petition itself still proceeds. Issuance of the green card waits until the priority date becomes current again.
Excerpts from this article were featured in Business Standard.
Nicholas A. Mastroianni III is President and CMO of U.S. Immigration Fund. USIF has served over 6,000 EB-5 investors and their families since 2010. Connect with him on LinkedIn. Rohit Turkhud is a Member at CSG Law, with over a decade of experience advising EB-5 investors worldwide.
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