The Department of Homeland Security is expected to publish a proposed rule in the coming weeks to rescind the International Entrepreneur Rule. The proposal has been approved by the White House Office of Information and Regulatory Affairs, the first step in the rulemaking process.

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 issued a rule to delay implementation of the International Entrepreneur Rule days before it was to take effect in July 2017, but a federal court on Dec. 1, 2017 vacated the delaying rule as violating the Administrative Procedures Act because DHS did not go through normal rulemaking procedures, including a public notice and comment period. Since that order, only 10 entrepreneurs have applied under the rule and all cases remain pending.

BAL Analysis: By rescinding the rule, the Trump administration is going against a global trend of countries seeking to attract innovation through entrepreneur and start-up visas. Foreign entrepreneurs should look for other immigration routes if seeking to pursue start-up companies in the U.S. The rescission rule will take at least three months to be finalized; it will be published in the Federal Register and thereafter undergo a notice and comment period of 30 or 60 days before a final rule is published and implemented.

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

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