Visa Lawyer Blog

Articles Posted in International Entrepreneurs

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The Trump administration has taken its first step toward dismantling the International Entrepreneur Rule, an Obama era program that would have given thousands of foreign entrepreneurs the opportunity to travel to the United States for a 30-month period, for the purpose of starting or scaling their start-up business enterprise in the United States.

On November 17, 2017, the Trump administration sent a notice to the Office of Management and Budget (OMB) to officially end the International Entrepreneur Rule. This notice appeared on the website of the Office of Information and Regulatory Affairs as early as Friday. At this time, the Trump administration is finalizing a draft to officially rescind the rule. Once the administration has finished reviewing the draft, it will be published in the Federal Register. It is expected that the draft to rescind the rule will be published within the next week.

After publication, a public notice and comment period will follow, as required by the Administrative Procedure Act, a process by which the government invites the public to comment on a proposed version of a government rule published in the Federal Register. Once the comment period has ended, the government responds to comments, considers feedback, and decides whether such feedback will have any influence on their decision to rescind the rule.

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Unsurprisingly, this week we learned that the Trump administration is taking further steps to toughen the process of applying for an H-1B visa extension/renewal request, and that of other highly sought-after non-immigrant work visa types filed using Form I-129 Petition for Nonimmigrant Worker such as the H, O, P, L, and R work visas. The news comes as part of the President’s ongoing plan to prioritize the employment of American workers over foreign workers, outlined in the President’s Executive Order “Buy American, Hire American.”

On October 23, 2017, the United States Citizenship and Immigration Services (USCIS) announced that the agency will be updating its adjudication policy “to ensure petitioners meet the burden of proof for a non-immigrant worker extension petition.” The change in policy specifically provides that USCIS officers will “apply the same level of scrutiny to both initial petitions and extension requests” for the H-1B visa as well as other nonimmigrant visa types.

Per USCIS, this policy will now apply to “nearly all non-immigrant classifications filed using Form I-129 Petition for Nonimmigrant Worker.” This means that all nonimmigrant worker visa renewal requests, made using Form I-129, will be subject to the same level of scrutiny that was applied during the foreign worker’s initial non-immigrant work visa request.

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On September 19, 2017, the American Immigration Council in cooperation with Mayer Brown LLP, filed a lawsuit in federal district court on behalf of the National Venture Capital Association (National Venture Capital Association, et.al. v. Duke, et. al.) challenging the President’s postponement of the International Entrepreneur Rule. The Plaintiffs in the lawsuit collectively argue that the United States Department of Homeland Security (DHS), unlawfully delayed enforcement of the International Entrepreneur Rule by circumventing key provisions of the Administrative Procedure Act.

In order for a federal rule to become effective, the Act requires federal agencies to abide by a notice-and-comment rule making procedure, a process by which the government invites the public to comment on a proposed version of a government rule published in the Federal Register. After the comment period has ended, the government responds to comments, considers feedback, and decides whether such feedback will have any influence on the content of the rules. The Supreme Court has ruled that the notice-and-comment procedure is required for “legislative” or “substantive” rules that intend to “bind” the public, and that similar to a statute, these types of rules have the “force and effect” of law. The notice-and-comment rule making requirement, however does not apply to interpretive rules, which are rules that do not bind the public or have the “force” of law in the same way that legislative or substantive rules do. The National Venture Capital Association argues that the government unlawfully invoked the “good cause” exception of the APA to postpone the Rule, and that the Rule was unlawfully halted under the pretext that doing so would prevent harm to the public interest, when no emergency situation existed which would allow such a delay.

The International Entrepreneur Rule was first published in the Federal Register on January 17, 2017, and the notice-and-comment period was set to begin 30 days from the date of the rule’s publication in the federal register. However, the government never announced a comment period for the Rule. On July 13, 2017, the Department of Homeland Security announced that the implementation of the rule would be delayed to March 14, 2018, at which time the government would seek comments from the public, with a plan to rescind the rule.

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Great news for cap-exempt H-1B applicants! Effective immediately, the United States Citizenship and Immigration Services (USCIS) will resume premium processing services for certain cap-exempt H-1B petitions.

As you may recall in early April, USCIS temporarily suspended expedited processing of all H-1B petitions to reduce H-1B processing times and prioritize processing of H-1B extensions nearing the 240-day mark.

Today, July 24, 2017, USCIS announced that certain cap-exempt H-1B petitioners can now take advantage of premium processing services.

Please note that H-1B petitions filed on behalf of physicians under the Conrad 30 waiver program are not affected by the suspension.

What is premium processing?

Premium processing service refers to an optional premium processing service offered by USCIS to employers filing Form I-129 (Petition for a Non-immigrant Worker) or Form I-140 (Immigrant Petition for Alien Worker). Premium processing guarantees 15 calendar day processing to petitioners or applicants who make use of the service. Applications that are not processed within 15 calendar days otherwise receive a refund of the $1,225 premium processing fee. To make use of the service, petitioners or applicants must file Form I-907 with their application and include the appropriate fees. The I-907 request for premium processing service can be filed together with an H-1B petition or separately pending a decision.

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It’s official. The Department of Homeland Security has rolled out a plan to delay the effective date of the International Entrepreneur Rule, which was set to be enforced on July 17, 2017, to March 14, 2018, at which time the Department will seek comments from the public to rescind the rule, in accordance with Executive Order 13767, “Border Security and Immigration Enforcement Improvements” signed by President Trump on January 25, 2017.

Written comments from the public are due on or before 30 days from the date of publication in the federal register. It is strongly advised that all affected foreign entrepreneurs, business owners, attorneys, immigration advocates etc. leave a public comment identified by DHS Docket No. USCIS-2015-0006, online or by mail detailing the adverse effect that rescinding the rule would have on the U.S. economy and the expansion of jobs in the United States.

Public Comments

Online: Federal eRulemaking Portal: http://www.regulations.gov. Follow the website instructions for submitting comments.

This document is scheduled to be published in the Federal Register on 07/11/2017 and available online at https://federalregister.gov/d/2017-14619, and on FDsys.gov

By Mail: You may submit comments directly to U.S. Citizenship and Immigration Services (USCIS) by sending correspondence to Samantha Deshommes, Chief, Regulatory Coordination Division, Office of Policy and Strategy, UCSIS, DHS, 20 Massachusetts Avenue, NW, Washington, DC 20529. Remember to reference DHS Docket No. USCIS-2015-0006 in all mail correspondence.

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7541767406_8bf4575705_zNew developments have recently emerged regarding the Trump administration’s decision to dramatically scale back or rescind the International Entrepreneur Rule, passed under former President Barack Obama, a rule that would have made it easier for eligible start-up entrepreneurs to obtain temporary permission to enter the United States for a period of 30 months, through a process known as “parole,” for the purpose of starting or scaling their start-up business enterprise in the United States. International entrepreneurs would have been able to apply for this benefit beginning July 17, 2017.

However, this may all change in the coming days. The San Francisco Chronicle has reported that the Trump administration plans to undo the International Entrepreneur rule, to prevent foreign entrepreneurs from coming into the United States and starting their companies. This comes as part of President Trump’s commitment to “buy American, and hire American,” and his promise to create more jobs in the United States, by encouraging American companies to expand within the United States. All of this unfortunately comes as no surprise. It is no secret that the President has consistently expressed his anti-immigrant sentiment through his immigration policies and executive orders.

An administration official has come forward on condition of anonymity disclosing that the Trump administration plans to push back the rule’s effective date from July 17, 2017 to March 2018, to give the administration enough time to dramatically scale back the rule or get rid of the rule altogether.

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On December 6, 2016 Congress passed a continuing resolution to fund government programs through April 28, 2017. Among the programs that qualified to receive additional government funding was the EB-5 Regional Center Investor Program, a program made possible by a Congressional statute. The Continuing Resolution effectively extended the EB-5 Regional Center program through April 28, 2017 with no changes to the program’s policy. With time running out, Congress must either extend the statutory deadline once again to September 30, 2017, or pass reforms to the program. The government is currently holding Congressional hearings to make changes to the EB-5 Regional Center Program. It appears that legislators are contemplating overhauling the EB-5 program altogether, instead of extending the validity period of the program. At this stage, however, it is not likely that a major overhaul of the EB-5 program will take place by April 28th.

Proposed Rule EB-5 Immigrant Investor Regional Center Program

For their part, the U.S. Department of Homeland Security has already introduced a series of proposals in the Federal Register to modernize the EB-5 Immigrant Investor Program. The comment period for the proposed rule closed on April 11, 2017.

Among its major provisions the Department’s proposed rule would authorize:

  • Priority date retention for EB–5 petitioners;
  • Increases the minimum investment amount for targeted employment areas (TEAs) and nonTEAs to $1.8 million;
  • For investors seeking to invest in a new commercial enterprise that will be principally doing business in a targeted employment area (TEA), DHS proposes to increase the minimum investment amount from $500,000 to $1.35 million;
  • DHS is proposing to make regular CPI–U-based adjustments in the standard minimum investment amount, and conforming adjustments to the TEA minimum investment amount, every 5 years, beginning 5 years from the effective date of these regulations;
  • Revisions to the TEA designation process, including the elimination of state designation of high unemployment areas as a method of TEA designation;
  • DHS proposes to allow any city or town with high unemployment 4 and a population of 20,000 or more to qualify as a TEA;
  • DHS proposes to eliminate the ability of a state to designate certain geographic and political subdivisions as highunemployment areas; instead, DHS would make such designations directly;
  • Revisions to the filing and interview process for removal of conditions on lawful permanent residence.

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As the days lead up to April 3, 2017, (the first day that USCIS will begin to accept H-1B petitions for fiscal year 2018) our office will be very busy putting the final touches on all cap-subject H-1B petitions. In this post, we will discuss what you should be doing now to tie up any loose ends and increase your chances of selection this H-1B season. In addition, this post will outline what you can expect to receive from USCIS after filing.

First, create a preliminary checklist to ensure that you have met all the requirements to properly file your H-1B cap-subject petition:

Note: Premium processing is suspended for all petitions filed for H-1B fiscal year 2018 for both the H-1B regular cap and master’s cap. Do not file a Form I-907 request for premium processing because the form will be rejected. If you include the I-907 fee in combination with any other filing fees associated with the H-1B visa, USCIS will reject the entire H-1B petition.

Checklist:

  1. Did you include the correct version of all forms with revision date on/after Oct. 23, 2014? See uscis.gov/forms to download current form versions.
  2. Did you properly sign and complete Form I-129 including the correct H Classification Supplement?
  3. Did you properly sign and complete the I-129 and H Supplement?
  4. Did you properly sign and complete the I-129 Data Collection Supplement and Filing Fee Exemption Supplement?
  5. Did you include a properly signed and certified Form ETA-9035 Labor Condition Attestation (LCA) from the Department of Labor for the position for which the beneficiary is applying for?
  6. Did you ensure all forms have an original signature in black or blue ink?
  7. Did you include separate signed checks or money orders for each filing fee with the correct fee amounts?

REMEMBER that USCIS recently changed its fee schedule for certain petitions effective December 23, 2016. See https://www.uscis.gov/fees for a complete list of current fees.

  1. Did you include all required documentation and evidence in support of your petition? See below for a running list.
  2. Did you ensure that you have included only one H-1B position for the beneficiary of each H-1B petition you have prepared?
  3. Do you know the service center where you must file the petition? If not, ensure that you submit your petition to the correct USCIS service center. The service center where your petition must be filed depends on the work location of the H-1B beneficiary as you have specified in the petition. To determine the correct service center see https://www.uscis.gov/i-129-addresses. Failure to submit your petition to the correct service center will result in a rejection of your H-1B petition.

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Beginning April 3, 2017, the United States Citizenship and Immigration Services (USCIS) will temporarily suspend expedited processing of H-1B visas, a service previously available to H-1B petitioners known as premium processing. The reason: to reduce overall H-1B processing times and prioritize processing of H-1B extensions nearing the 240-day mark. Premium processing previously guaranteed a 15-day processing time, or refund of the $1,225 premium processing fee. Although premium processing did not increase a petition’s chances of being selected for an H-1B visa, it gave petitioners the benefit of waiting a shorter period and allowed selected petitioners the option of upgrading their application to premium processing after filing.

Petitioners will not have the option of paying for the premium processing service for a period of at least 6 months beginning April 3, 2017. The suspension will affect all H-1B petitions filed on or after April 3, 2017 including all petitions filed for the FY18 H-1B regular cap and master’s advanced degree cap exemption. Additionally, the suspension may affect petitions that are cap-exempt, but will not apply to other eligible nonimmigrant classifications filed with Form I-129.  While the premium processing service is suspended, petitioners may not file a request for premium processing (I-907) for an I-129 Petition for H-1B worker until USCIS has announced that it has resumed premium processing for H-1B petitions. Beginning April 3, 2017 if a petitioner submits a single check combining fees for premium processing and the Form I-129 USCIS will reject both applications (not just the request for premium processing). To avoid this DO NOT submit any premium processing requests on or after April 3, 2017.

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It is our pleasure to announce that USCIS has now published the Final International Entrepreneur Rule in the federal register. The final rule is estimated to benefit approximately 2,940 foreign entrepreneurs on an annual basis beginning July 17, 2017. The rule will make it easier for eligible start-up entrepreneurs to obtain temporary permission to enter the United States for a period of 30 months, or 2.5 years, through a process known as “parole,” for the purpose of starting or scaling their start-up business enterprise in the United States. The foreign entrepreneur’s stay may be extended for an additional 30 months to allow the entrepreneur to continue to oversee and grow their start-up company in the United States. The decision about whether to “parole” a foreign entrepreneur under this rule will be a discretionary determination made by the Secretary of Homeland Security on a case-by-case basis (INA Section 212(d)(5), 8 U.S.C. 1182(d)(5)).

The goal of this final rule is to encourage foreign entrepreneurs to create and develop start-up companies with high potential for success in the United States, and enhance economic growth through increased capital spending and job creation.  Under this rule “parole” will be granted to eligible entrepreneurs who can demonstrate that their company’s business operations are of significant public benefit to the United States by providing evidence of substantial and demonstrated potential for rapid business growth and job creation. Such demonstrated potential for rapid growth and job creation may be evidenced by: (1) significant capital investment from U.S. investors with established records of successful investments or (2) attainment of significant awards or grants from certain Federal, State, or local government entities.

The final rule will allow up to three entrepreneurs to seek “parole” per-start up entity, as well as their spouses and children. Entrepreneurs who qualify for “parole” may only work for their start-up business entity in the United States. Their spouses in turn will be eligible to apply for employment authorization once in the United States.

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