The Cato Institute has long advocated for a visa system based on price, a “gold card” concept. My colleague Alex Nowrasteh suggested in 2019 that such a system, where immigrants pay a fee for the right to live and work in the U.S., “would create a dynamic, market-based, merit-based, relatively more economically efficient, and self-regulating system that would serve the ever-changing American economy.”
However, President Donald Trump’s attempts to program are unlikely to prove fruitless.
On April 4th, President Trump unveiled his “Trump Gold Card,” proposing to sell it to immigrants for $5 million in exchange for U.S. legal permanent residence. While Trump displayed a physical card, the proposal’s feasibility is questionable. Selling legal residency has potential, but Trump’s specific plan is unlikely to attract buyers.
President Trump insists he can begin issuing gold cards soon without Congressional approval. However, two major hurdles stand in the way.
Firstly, the President lacks the authority to grant lawful permanent resident status. The Immigration and Nationality Act clearly defines who is eligible for a “green card,” the document signifying permanent resident status.
Whether someone could sue to block the Trump Gold Card is debatable. (Who could credibly claim harm from wealthy foreign immigration?) Regardless, this lack of legal basis compounds the second issue: limited demand for a $5 million green card.
Although Commerce Secretary Howard Lutnick estimates 37 million people globally could afford the Gold Card—and Trump aims to sell 1 million—only about 1.5 million non-Americans possess net assets (excluding their primary residence) exceeding $5 million.
Many economists argue that attracting this group to the U.S. would benefit the country. However, these wealthy individuals are unlikely to simply donate their fortunes for the opportunity to reside here. If they are thriving financially in their current locations, they have little incentive to relocate. Furthermore, U.S. tax law acts as a deterrent.
Many high-income earners abroad will be hesitant to move to the U.S. due to worldwide income . Trump is , therefore, to only tax gold card holders on U.S.-sourced income. However, the President cannot unilaterally alter U.S. tax law without Congressional action.
Even if the legal uncertainties weren’t enough, better legal avenues already exist for wealthy individuals willing to relocate. They can easily obtain visas allowing visits of up to six months while maintaining residency elsewhere.
If permanent residency is the goal, easier options exist. Individuals with “sustained national or international acclaim” an extraordinary ability green card. Those lacking such fame could invest a small portion of their wealth to gain it.
The EB-5 investor visa also exists. Through EB-5, immigrants can gain permanent residence by investing in a rural or economically distressed area and creating 10 jobs within two years. EB-5 requires less capital, and the investment is eventually recovered, unlike the Gold Card, which represents a complete loss.
In 2024, fewer than 5,000 investors . President Trump is aware that EB-5 is easier, so he’s . Of course, terminating a green card category via executive order is as unlawful as creating one, but it would create grounds for lawsuits and potentially halt the entire policy (including the new “gold cards” replacing EB-5).
Issuing Trump’s gold cards, changing tax law, and ending the EB-5 investor visa are all likely illegal. Even if the President secures Congressional approval or circumvents judicial review, few high-net-worth immigrants will surrender their fortunes to Trump.
Limited demand for Trump’s gold card from wealthy Chinese, Saudi, and Russian businessmen who value freedom in the U.S. over prosperity under their current regimes. However, Trump is unlikely to receive support from his own party for encouraging immigration from these groups. Many Republicans have to EB-5 immigration by wealthy Chinese, fearing communist infiltration.
Unfortunately, Trump is also undermining the gold card’s potential by who . This means customers would pay for a card that could be revoked due to political disagreements with the President, eroding trust and reducing demand.
If Congress gets involved, a revised gold card could succeed. If President Trump wants $1 trillion in revenue, Congress should set that target and incrementally reduce the gold card price until sufficient demand is generated. Such a dynamic threshold would eventually raise revenue and make Trump’s idea viable. Hopefully, the President is open to revisions.