Federal court orders USCIS to restart processing for nationals of 39 countries

A federal judge ruled that USCIS unlawfully paused adjudications tied to travel restrictions affecting nationals of 39 countries, a decision that could ease uncertainty for EB-5 investors. The case is on appeal, but the ruling underscores key EB-5 deadlines in 2026 and 2027 that could shape filing strategy.

Why it matters: - The ruling could help restore momentum for EB-5 investors who delayed U.S. immigration plans because USCIS processing was on hold. - The case also comes as EB-5 investors face two deadlines that can materially affect filing strategy and investment costs. - The September 30, 2026 grandfathering deadline gives timely I-526E filers statutory protection if the EB-5 Regional Center Program changes, pauses or lapses. - The January 2027 inflation adjustment could raise the EB-5 minimum investment amount for investors who wait to file.

What happened: - In Dorcas International Institute of Rhode Island v. USCIS, Chief Judge John J. McConnell Jr. found that USCIS unlawfully implemented an adjudication pause affecting immigration petitions tied to nationals of 39 countries. - The court ruled that USCIS exceeded authority granted by Congress and violated the Administrative Procedure Act. - The judge ordered USCIS to resume adjudicating the affected petitions. - The decision is under appeal, so the litigation is not finished.

The details: - The court found USCIS did not give a sufficient legal justification for the processing freeze. - The ruling said USCIS did not adequately consider applicants who had already filed under the existing rules. - The court also rejected the agency’s national security rationale as the true basis for the policy. - The ruling does not automatically approve pending immigration applications. - The ruling does not remove the underlying presidential travel restrictions affecting the designated countries. - Form I-526E filings submitted before Sept. 30, 2026 qualify for grandfathering protections under the EB-5 Reform and Integrity Act of 2022. - The EB-5 minimum investment thresholds are scheduled for inflation adjustment every five years under the RIA. - Investors who file before the January 2027 adjustment can lock in the current minimum investment amount. - Investors who wait could face a higher threshold. - Prospective investors should consult experienced U.S. immigration counsel to assess how the litigation and deadlines affect their cases.

Between the lines: - The ruling does not end uncertainty, but it signals that federal courts may scrutinize agency pauses that affect already-filed immigration cases. - For EB-5 candidates, timing now matters as much as eligibility, since statutory protections and cost increases can turn on filing date. - Shai Zamanian, founder and director of The American Legal Center, said uncertainty, not eligibility, has been the main obstacle for many prospective investors. - Zamanian said early preparation can put investors in the strongest position to use EB-5 opportunities before they close or become more expensive.

What's next: - The government’s appeal will determine whether the order to resume adjudications stays in place. - EB-5 investors will keep watching the Sept. 30, 2026 grandfathering deadline and the expected January 2027 investment adjustment. - The outcome may influence how quickly affected applicants move to file and complete documentation.

The bottom line: - USCIS must resume adjudications for now, but the appeal and looming EB-5 deadlines leave investors with a narrow window to act.