Washington— Senators Dianne Feinstein (D-Calif.), Patrick Leahy (D-Vt.) and Mazie Hirono (D-Hawaii) on April 21, 2017, wrote to White House Counsel Donald F. McGahn requesting information about the financial interests of Trump administration officials in the EB-5 regional center program.
In light of new reporting about the Kushner Company’s efforts to market the EB-5 program in China, Feinstein released the letter, which has not yet been responded to.
The senators wrote, “Many of the projects funded by the EB-5 Regional Center program are large real estate developments—the cornerstone of both the Trump and Kushner business empires. As public reporting indicates, the potential for conflict is real. For example, Bloomberg News has reported that, as chief executive officer of the Kushner Companies, Jared Kushner built a Trump-branded luxury tower in New Jersey that relied on $50 million of EB-5 dollars from wealthy Chinese investors. Additionally, according to Bloomberg, Kushner Companies is reportedly seeking $850 million in EB-5 funding for redevelopment of their marquee Manhattan skyscraper at 666 Fifth Avenue. This would mark the largest single EB-5 investment in the history of the program.”
Full text of the letter follows:
April 21, 2017
Donald F. McGahn
White House Counsel
Eisenhower Executive Office Building
1650 Pennsylvania Avenue, NW
Washington, DC 20501
Dear Mr. McGahn,
We write to request information regarding the financial interests that Trump Administration officials may have in the EB-5 Regional Center Program. That program provides visas, and eventually citizenship, in exchange for foreign investments in the U.S. It is due for reauthorization on April 28, 2017, and overdue for serious reform. As Congress considers the program and engages the Administration on its views, it is important to understand how President Trump and senior advisor Jared Kushner have personally benefitted and may continue to benefit from EB-5 investments.
Many of the projects funded by the EB-5 Regional Center program are large real estate developments—the cornerstone of both the Trump and Kushner business empires. As public reporting indicates, the potential for conflict is real. For example, Bloomberg News has reported that, as chief executive officer of the Kushner Companies, Jared Kushner built a Trump-branded luxury tower in New Jersey that relied on $50 million of EB-5 dollars from wealthy Chinese investors. Additionally, according to Bloomberg, Kushner Companies is reportedly seeking $850 million in EB-5 funding for redevelopment of their marquee Manhattan skyscraper at 666 Fifth Avenue. This would mark the largest single EB-5 investment in the history of the program.
A White House spokesperson has said that Mr. Kushner is committed to recusing himself from EB-5 policy discussions. He has also divested from his family’s property at 666 Fifth Avenue. But these steps may not be sufficient to cure the potential conflicts posed by the sprawling financial interests Mr. Kushner retains in his family’s real estate empire. Recent White House financial disclosures indicate that Mr. Kushner “will remain a beneficiary of the vast majority” of his family’s real estate assets, with a stake worth as much as $740 million. The disclosures reveal that Mr. Kushner is retaining a $5 million interest in the Trump tower that he built in New Jersey using substantial EB-5 investments.
These disclosures do not provide the names of investors or lenders to this and other ventures in which Mr. Kushner retains a financial interest, making it impossible to know the extent to which any of these properties may be relying on EB-5 investor money. This is troubling because it is precisely “real estate projects like the Kushner Companies’ deals” that have become a “magnet for opaque foreign money” like EB-5 investments.
In order to gain a better understanding of the extent of this potential problem – for Mr. Kushner and President Trump – and before Congress can engage the White House in substantive discussions about the future of the EB-5 Regional Center Program, we ask that you provide the following information:
We appreciate your prompt attention to this request and, given the upcoming sunset of the EB-5 Regional Center program, ask that you provide the requested information no later than April 25, 2017. We look forward to your response and appreciate your cooperation in this important matter.
Sincerely,
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