Trump Blocks International Entrepreneurial Parole Program

July 11, 2017

The Trump Administration has announced today that it will delay the implementation of the International Entrepreneur Parole Rule (“IEP”), which was scheduled to take effect next week on July 17, 2017. The IEP program was published as a Final Rule by the Obama Administration a few days before Trump took office. The program would have allowed certain qualifying startup founders who had secured investment from certain qualifying U.S. investors to obtain work authorization and legal status in order to grow their business. In the Final Rule published today, the Trump Administration has delayed implementation until March 14, 2018 in order to solicit “public comments on its proposal to rescind the rule.” The Administration cited Trump’s earlier executive order (E.O. 13767) promising to reexamine immigration-related rulemaking introduced under the Obama Administration, as the basis for its proposed recession. Although new rules must generally go through the notice and comment process called for under the Administrative Procedures Act prior to taking effect, in the Final Rule announced today, the Trump Administration claimed a “good cause” exemption from this requirement by stating, in effect, that because the Rule will likely be rescinded, allowing it to take effect now would “sow confusion and likely cause the waste of resources by multiple stakeholders with interests in this rulemaking.”
 
Analysis
 
The Trump Administration’s announcement today is a clear indication that it intends not only to delay the IEP program, but to scrap it completely. Due the limitations of other more standard options for work authorization, the IEP program has been seen by many experts as a critical tool for fostering economic growth and job creation. Today’s Final Rule will undoubtedly be met with opposition, which may include legal challenges due to the Administration’s decision to implement the Rule without first going through the notice and comment procedure.
 
We will provide more information as it becomes available.

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