Entrepreneur rule sent to OMB for review, could be put off

The International Entrepreneur Rule, which was finalized days before former President Barack Obama left office, has been sent to the Office of Management and Budget for further review. The additional review will likely delay the rule’s scheduled July 17 implementation and could signal the Trump administration’s intent to keep it from taking effect at any point during Trump’s presidency.

Key points:

• The final rule, which was published in the Federal Register Jan. 17, would grant qualifying foreign entrepreneurs permission to remain temporarily in the U.S. to grow their startup businesses. Applicants would be required to meet minimum capital investment or government grant requirements and demonstrate that their startup would provide a significant public benefit through rapid growth and job creation.
• The Trump administration signaled shortly after Trump took office that it might scrap the rule. The additional OMB review could result in changes to the rule or the elimination of it altogether, and will almost certainly delay the July 17 implementation.

BAL Analysis: While the rule has not been officially scrapped, it appears increasingly unlikely that it will take effect during the Trump administration.

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

Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.