Trump suspends visa program for startup pioneers

In an effort that could undermine the future of foreign entrepreneurs in Silicon Valley, the Trump administration has suspended the rollout of a program allowing immigrant founders to stay in the U.S. while growing their companies.

Silicon Valley tech advocates say the move will send an unwanted message to future startup pioneers and risk the region’s long-term competitiveness. It’s also a strike against the tech industry’s political influence in D.C. under Republican leadership. Tech has lobbied hard for pro-immigration policies.

“This is unquestionably a setback for the United States in the global race for talent — we should be encouraging innovators to bring their new ideas, expertise and unique skills to our

country, rather than incentivizing them to put their talents to work for our competitors abroad,” said Todd Schulte, president of FWD. us, an immigration advocacy group backed by the tech industry.

The International Entrepreneur Rule, or IER, was proposed by the Obama administration last year to let immigrant founders stay in the U.S. for up to five years, provided they have a track record and business plan for expanding here. It’s known informally as a startup visa.

The rule allows the Department of Homeland Security to grant a provisional stay for certain entrepreneurs. The rule requires a founder to have at least $250,000 in funding and substantial ownership in a company less than five years old. The company must also “provide a significant public benefit to the United States.”

The program was scheduled to open next week, but the Trump administration will delay it until at least March 2018 while it collects comments regarding “a proposal to rescind the rule,” according to a notice that is to be published in the Federal Register Tuesday. Candidate Donald Trump built his political platform around immigration reform and curbing the number of visas allowing for the flow of foreign visitors for study and business. The administration is also considering changes to the H-1B visa program for skilled workers.

Several Republicans in Congress last year opposed the draft rule, challenging President Barack Obama’s authority to “parole“immigrant entrepreneurs.

The Department of Homeland Security estimated that 2,900 entrepreneurs, mainly from China, India, Brazil and Russia, would apply for the program.

Tech advocates say the rule would allow the country to continue to compete with China and Europe for the best talent in the world.

A study by the National Foundation for American Policy found more than half of the startups valued at more than $1 billion have at least one foreign-born founder. The list includes now-established companies and their founders, including Silicon Valley moguls Elon Musk of Tesla and Sergey Brin of Alphabet, among others.

Anastasia Tonello, an attorney and incoming president of the American Immigration Lawyers Association, said the rule could help young graduates and others seeking to build small companies.

“It’s unfortunate,” she said.

Peter Leroe-Muñoz, vice president of technology and innovation policy at the Silicon Valley Leadership Group, said the move was symptomatic of the Trump administration’s efforts to undermine immigration reform.

Stopping the startup visa program sends the wrong message to high-skilled immigrants.

“That’s a lost opportunity,” he said.

Members of the leadership group, which represents 350 companies in the Bay Area, visited the U.S. Capitol earlier this year to lobby lawmakers for more open policies on immigration. In September, business leaders will take an unusual step and return to the Capitol for more discussions, Lero-Muñoz said.

“I don’t think our message is being fully heard or listened to, yet,” he said.

Max Versace, co-founder of the artificial intelligence startup Neurala, said the delay is discouraging to immigrant tech workers.

Versace, a native of Italy, started his Boston-based AI firm in the U.S. because of the opportunity and talent.

“I would think twice to go to a place where I’m not welcome,” he said.

Versace said he spoke with some foreign-born engineers working for his company about their longterm plans. One wanted to return to France, he said, in part because of the recent feelings toward immigrants in the U.S.

“It might be purely coincidental,” Versace said, “or it might be a trend.”