DHS Proposes Rescinding International Entrepreneur Rule

05/25/2018

Today the Department of Homeland Security ("DHS") announced it is proposing a rule to rescind the International Entrepreneur Rule, which allows DHS to parole international entrepreneurs into the United States. The proposed rule, scheduled to be published in the Federal Register on May 29th, will provide a public comment period.

DHS originally published the final International Entrepreneur Rule days before President Trump assumed office, with an effective day of July 17, 2017. Shortly before the rule took effect, DHS published a final rule to delay its implementation until March 14, 2018 to gather public input about rescinding the rule. A federal court, however, found DHS violated the Administrative Procedures Act ("APA") and required DHS to let the rule take effect. With this notice, DHS is beginning the rule-making process to rescind the International Entrepreneur Rule.

The DHS announcement states, "DHS is now proposing to eliminate the IE Final Rule because the department believes 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 announcement also notes there are existing immigrant and nonimmigrant visa categories for foreign investors.