DHS proposed rule to rescind International Entrepreneur Rule expected to be posted soon

25 May 18

UNITED STATES

The Department of Homeland Security (DHS) is proposing a rule to rescind the International Entrepreneur Rule. The move was expected, especially after the White House Office of Information and Regulatory Affairs approved the proposal. The proposed regulation is scheduled to be published in the Federal Register on May 29.

Key points:

  • The International Entrepreneur Rule was introduced in the final weeks of the Obama administration and allows qualifying entrepreneurs to apply for parole status to enter or remain in the U.S. to grow their start-up companies.
  • President Trump’s administration issued a rule to delay implementation of the International Entrepreneur Rule days before it was slated to take effect in July 2017, but a federal court on Dec. 1, 2017 vacated the delay. The court concluded that DHS had violated the Administrative Procedure Act because it did not go through normal rulemaking procedures, including a public notice and comment period.
  • The administration is now taking the necessary regulatory steps to rescind the rule. DHS said in a statement Friday that it is doing so because “the department believes that it represents an overly broad interpretation of parole authority, lacks sufficient protections for U.S. workers and investors, and is not the appropriate vehicle for attracting and retaining international entrepreneurs.”

BAL Analysis: By rescinding the rule, the Trump administration is going against a global trend where countries are seeking to attract innovation through entrepreneur and start-up visas. DHS did stress that other options are available for some entrepreneurs, including the E-2 and EB-5 investor visa programs. The rescission of the Entrepreneur Rule is not yet finalized; officials must observe a notice and comment period before a final rule can be published and implemented.

This alert has been provided by the BAL U.S. Practice group. For additional information, please contact berryapplemanleiden@balglobal.com.

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