District Court Reinstates “Start-up Visa”
On December 1st, United States district judge James Boasberg ruled the Trump Administration’s delay of the Obama-Era International Entrepreneur Rule an unlawful use of administrative power. The ruling effectively reinstates the “start-up visa” program until further response from the administration.
Ruling
In NVCA v. Duke, the National Venture Capital Association (NVCA), a group of entrepreneurs and start up owners, sued the Department of Homeland Security for a decision to delay the International Entrepreneur Rule. The DHS delay followed the President’s executive order, Border Security and Immigration Enforcement Improvements (February 2017), that ended many immigration benefits. The NVCA sued based on the DHS’s violation of proper procedural requirements for administrative rules. Because the delay went into effect without notice or comment to the public, the judge ruled that NVCA had grounds to sue based on procedural requirements in the Administrative Procedure Act. The district court’s ruling in favor of NVCA reinstates the Obama-era rule effective immediately.
International Entrepreneur Rule
The rule, set to go into effect in July of 2017 before the executive order, allows certain promising founders of startups to enter the United States to start growing their company. The visa program is intended for the benefit of the US economy due to startup potential for job creation and innovation. If approved through the international entrepreneurship rule, DHS can use “parole” authority to grant a period of authorized stay for certain entrepreneurs who did not qualify for other specialized visas (like H1-B). According to USCIS, this program has the potential to admit nearly 3,000 entrepreneurs annually. Eligible entrepreneurs can receive a period of stay up to 30 months with the potential to extend the period of stay an additional 30 days. The court ruling is a big win for foreign entrepreneurs, as well as for the US economy. The program promises to provide more US jobs as new startups expand across the country.