The Department of Homeland Security published a proposed rule Tuesday proposing to remove the International Entrepreneur Rule, an Obama-era regulation that allowed qualified entrepreneurs to apply for parole status to enter or remain in the U.S. to grow their businesses.

Key points:

  • DHS says that the reason for repealing the International Entrepreneur Rule is 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.”
  • The agency will accept public comments for a 30-day period ending June 28.
  • The proposed elimination of the International Entrepreneur Rule will not take place until a final rule is published with an effective date.

Background: Shortly after taking office, the Trump administration issued a rule to delay implementation of the International Entrepreneur Rule days before it was slated to take effect in July 2017. On Dec. 1, 2017, a federal court vacated the delay, concluding that DHS violated the Administrative Procedure Act because it did not go through normal rulemaking procedures, including a public notice and comment period.

Although DHS was ordered to implement the rule, only a handful of applicants filed for parole under the International Entrepreneur Rule and all applications remain pending as the agency works to rescind the rule.

BAL Analysis: Companies and individuals interested in submitting comments to DHS may follow the instructions in the Federal Register notice here, or contact BAL for assistance.

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

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