Push opens to reinstate ‘startup visa’ rule

A group of entrepreneurs, companies and venture capitalists that sued the Trump administration last week for delaying a federal rule aimed at helping foreign entrepreneurs grow businesses in the U.S. filed a motion for a preliminary injunction Friday urging the administration to implement the rule, pending a final judgment.

If the court accepts the motion, the Department of Homeland Security would then be required to begin implementing the International Entrepreneur Rule.

The rule was approved by the Department of Homeland Security in January, shortly before President Barack Obama left office. The idea was to give foreign entrepreneurs a chance to remain in the U.S. and develop their companies, even if they don’t qualify for existing visa programs.

The Trump administration delayed the rule before it was scheduled to take effect on July 17 and declared its intent to rescind it altogether.

The National Venture Capital Association filed a lawsuit in a federal court last week. The group argued that the administration’s decision to delay the rule was unlawful because a law on administrative procedure requires a lengthy notice and public comment period before changes can be made.

The venture capital group argued that the rule, sometimes informally known as a “startup visa,” would have added jobs in the U.S. The Department of Homeland Security had estimated that about 3,000 people would be eligible to stay in the country under the rule.

The plaintiffs in the case include Omni Labs, a marketing intelligence software company headquartered in San Francisco.

The suspension of the rule adds costs for Omni Labs and another plaintiff, “including the expense of maintaining offices outside the United States, because their co-founders must work abroad,” the motion for an injunction reads.