Trump Administration’s Delay Of International Entrepreneur Rule Sparks Lawsuit

By Trisha Thadani
San Francisco Chronicle

WWR Article Summary (tl;dr) “A group of entrepreneurs, companies and venture capitalists have sued the Trump administration for delaying the International Entrepreneur Rule, which was intended to help foreign founders live in the U.S while growing their companies and had been set to go into effect July 17.”

San Francisco Chronicle

The International Entrepreneur Rule was passed by the Department of Homeland Security in January during President Barack Obama’s waning hours in office.

But a week before it was set to take effect, the Trump administration delayed the rule with the intent to rescind it altogether.

This move was seen as a blow to the tech industry, which had anticipated the rule — sometimes informally known as the “startup visa” rule — because currently no straightforward path exists for foreign entrepreneurs looking to live in the U.S. while growing a company.

The lawsuit was filed by the National Venture Capital Association Tuesday in the U.S. District Court for the District of Columbia. The group argues that the administration’s decision to delay the rule was unlawful under the Administrative Procedure Act, which, the association argues, would have required a lengthy notice and comment period from the public before the administration could make any changes.

The group is looking to reverse the delay, and ultimately permit foreigners who meet the rule’s requirements to start applying for temporary work status in the U.S.

The venture capital association said that the delay of the rule — and the lack of a “startup visa” — has impacted investors’ ability to work with foreign founders who have uncertain status in the U.S. It argued that the rule would have led to new jobs in the U.S. The Department of Homeland Security had estimated that about 3,000 people would be eligible for the rule.

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