Spending Bill Passed by Congress Extends Expiring Immigration Programs, Broadens Recovery Rebate Eligibility for Nonimmigrants
December 22, 2020
At a Glance
- The FY 2021 budget and economic stimulus legislation extends E-Verify for one year and the EB-5 Regional Center Program for six months, among other immigration extensions.
- The legislation also creates a second pandemic recovery rebate program, with less stringent Social Security Number requirements for nonimmigrants.
- The measure must be signed by President Trump to become effective. If an appropriations package or a stop-gap spending measure is not signed into law by midnight on December 28, 2020, government operations could be suspended and the E-Verify and EB-5 immigration programs, among others, could lapse until a spending agreement is reached and enacted.
The issue
Congress has passed the Consolidated Appropriations Act of 2021. If the President signs the legislation into law, it will fund the U.S. government (including immigration operations) through FY 2021, and extend four expiring immigration programs. The legislation also creates a second stimulus check program for U.S. taxpayers, including eligible nonimmigrants.
Government funding, as well as authorization for the E-Verify, Conrad 30, EB-5 Regional Center and EB-4 non-minister religious worker immigration programs, is set to lapse at midnight on December 28, 2020 if the Congressional spending bill or another temporary stop-gap measure is not signed into law by then.
Extension of expiring immigration programs
The E-Verify, Conrad 30 and non-minister religious worker green card programs would be reauthorized under the bill through September 30, 2021.
The EB-5 Regional Center Program would be reauthorized without change for six months, through June 30, 2021. In the past, the program had typically been reauthorized in one-year increments. The six-month extension means that the program would expire in midyear unless Congress reauthorizes it once again. The short reauthorization also means Congress would have a midyear opportunity to make statutory changes to the program, which have long been discussed in the legislature.
Stimulus payments
Section 272 of the appropriations bill provides a tax credit (also known as a recovery rebate) of (1) $600 for eligible individuals (or $1,200 for those filing a joint return); and (2) an additional $600 per qualifying child, for those with an adjusted gross income of not more than $75,000 for individual taxpayers, $150,000 in the case of a joint income tax return, or $112,500 in the case of a head of household. The credit is reduced by $5 for every $100 in income above the threshold.
For purposes of the rebate, an eligible individual is any individual who is a resident alien, as that term is defined under the Internal Revenue Code. A foreign national is a resident alien for income tax purposes if they meet either the green-card test or the substantial presence test for the calendar year.
Nonimmigrants who pay U.S. income taxes as resident aliens and who are not listed as dependents on another’s income tax return are likely to be eligible for the recovery rebate, provided they meet the income criteria and U.S. Social Security Number requirements.
Taxpayers filing individually must list a valid SSN on their income tax return to be eligible for the rebate. Eligible taxpayers claiming additional rebates for dependent children must list a valid SSN for each child claimed.
In an important change from the Spring 2020 recovery rebate program, SSN requirements have been eased for married couples filing jointly. To qualify, one spouse must have an SSN. Previously, both spouses needed to have an SSN to qualify for the rebate. Thus, under the new law, an H-1B principal who files jointly with her H-4 spouse could qualify for a rebate as long as the couple meets the income requirement – and even if the H-4 spouse does not have employment authorization or an SSN. Married couples who were ineligible for the Spring 2020 rebate because one spouse did not have an SSN may claim that rebate on their joint 2020 income tax return.
Because it is structured as an advance tax credit, the recovery rebate is not a cash public benefit for purposes of public charge bars to admissibility.
What’s next for the appropriations legislation
President Trump was expected to sign the measure into law, but has recently indicated he may veto the bill if the economic stimulus package and other spending provisions are not revised by Congress. If appropriations legislation or a temporary stop-gap measure is not enacted by midnight on December 28, 2020, government operations could be suspended and the expiring immigration programs could lapse until a spending agreement is reached and enacted.
Fragomen is closely following the legislation and will provide updates as developments occur.
This alert is for informational purposes only. If you have any questions, please contact the immigration professional with whom you work at Fragomen.