1 00:00:00,040 --> 00:00:03,600 Speaker 1: The Trump administration is being sued again over another delay 2 00:00:03,640 --> 00:00:06,960 Speaker 1: and likely reversal of an Obama rule. This one would 3 00:00:07,040 --> 00:00:10,520 Speaker 1: encourage foreign entrepreneurs to build businesses in the US. The 4 00:00:10,560 --> 00:00:15,840 Speaker 1: initiative is appropriately entitled the International Entrepreneur Rule. It was 5 00:00:15,880 --> 00:00:19,560 Speaker 1: designed to give foreign entrepreneurs who don't qualify for existing 6 00:00:19,640 --> 00:00:23,360 Speaker 1: visa programs the opportunity to stay in the US temporarily 7 00:00:23,440 --> 00:00:27,440 Speaker 1: to grow their startups. The National Venture Capital Association has 8 00:00:27,480 --> 00:00:30,520 Speaker 1: sued the Trump administration over its decision to delay the 9 00:00:30,600 --> 00:00:35,440 Speaker 1: rule until at least March fifteen and likely eliminated joining 10 00:00:35,560 --> 00:00:39,559 Speaker 1: US is Andrew Harris, Bloomberg News legal reporter Andrew the 11 00:00:39,600 --> 00:00:43,120 Speaker 1: initiative had broad support in the tech industry. Tell us 12 00:00:43,120 --> 00:00:46,199 Speaker 1: a little more about it, well, June, I think you 13 00:00:46,320 --> 00:00:48,959 Speaker 1: summed it up pretty well. The idea was that if 14 00:00:48,960 --> 00:00:51,600 Speaker 1: there's going to be a startup tech business in the world, 15 00:00:51,680 --> 00:00:55,240 Speaker 1: why not have it here. So the Obama administration had 16 00:00:55,280 --> 00:00:58,760 Speaker 1: set up a rule that went into effect or at 17 00:00:58,840 --> 00:01:01,560 Speaker 1: least hit the books right for President o Bottom left 18 00:01:01,600 --> 00:01:06,040 Speaker 1: office in January that would have allowed foreign entrepreneurs who 19 00:01:06,120 --> 00:01:08,679 Speaker 1: had sufficient backing a quarter of a million dollars in 20 00:01:09,240 --> 00:01:11,839 Speaker 1: venture capital or a hundred thousand dollars in government grants 21 00:01:11,880 --> 00:01:16,760 Speaker 1: to come here for a renewable thirty months term called parole, 22 00:01:17,280 --> 00:01:20,040 Speaker 1: during which time they could stay and grow their businesses. 23 00:01:20,240 --> 00:01:23,679 Speaker 1: And the Trump administration, just days before it was to 24 00:01:24,120 --> 00:01:26,959 Speaker 1: officially take effect in July, said we're going to punt 25 00:01:26,959 --> 00:01:30,640 Speaker 1: it into next year with an eye toward rescinding it. Andrew, 26 00:01:31,120 --> 00:01:36,679 Speaker 1: what is the Trump administration's rationale for rescinding this rule? 27 00:01:37,440 --> 00:01:41,480 Speaker 1: You know, that's a really good question. The official explanation 28 00:01:41,760 --> 00:01:46,200 Speaker 1: was that back in January, the President issued an executive order, 29 00:01:46,240 --> 00:01:48,320 Speaker 1: not the immigration order that we know, but two days 30 00:01:48,360 --> 00:01:52,120 Speaker 1: before that, and order addressed to securing the nation's borders 31 00:01:52,240 --> 00:01:57,880 Speaker 1: and enforcing laws where it comes to this non resident 32 00:01:57,960 --> 00:02:01,120 Speaker 1: status called parole. And at least that was a sidded 33 00:02:01,200 --> 00:02:06,760 Speaker 1: reason for reconsidering the Obama administration's initiative here. And what's 34 00:02:06,800 --> 00:02:10,280 Speaker 1: the lawsuit based on, Well, the lawsuit is based on 35 00:02:10,320 --> 00:02:12,919 Speaker 1: the notion that they just dropped in July. They dropped 36 00:02:12,919 --> 00:02:17,399 Speaker 1: this delay without any prior public notice or consultation, uh 37 00:02:17,400 --> 00:02:19,519 Speaker 1: and said that they're doing it with an eye tour 38 00:02:19,639 --> 00:02:24,239 Speaker 1: taking public comment about killing the rule. And the National 39 00:02:24,320 --> 00:02:28,079 Speaker 1: Venture Capital Association says, hey, you can't know, effectively kill 40 00:02:28,120 --> 00:02:32,680 Speaker 1: it without getting public comment. First, Andrew, this notion of 41 00:02:32,720 --> 00:02:36,160 Speaker 1: parole is a little different than some of the other 42 00:02:36,280 --> 00:02:40,160 Speaker 1: immigration issues we've been talking about with refugees and um 43 00:02:40,720 --> 00:02:44,919 Speaker 1: and you know, the DOCU program. What what exactly does 44 00:02:45,000 --> 00:02:48,440 Speaker 1: parole mean in terms of the status that these entrepreneurs 45 00:02:48,480 --> 00:02:51,560 Speaker 1: would get if the rule had does go into effect, 46 00:02:52,080 --> 00:02:55,720 Speaker 1: well did go into effect, these bar and entrepreneurs would 47 00:02:55,720 --> 00:02:57,840 Speaker 1: be able to stay here for thirty months, renewable to 48 00:02:58,080 --> 00:03:01,639 Speaker 1: up to sixty amounts or five years under certain circumstances. 49 00:03:01,720 --> 00:03:04,880 Speaker 1: They could even have families here during that time, during 50 00:03:04,919 --> 00:03:07,680 Speaker 1: which they could develop their businesses. It's not a path 51 00:03:07,760 --> 00:03:10,960 Speaker 1: to residency or citizenship, but it was a way to 52 00:03:11,560 --> 00:03:13,880 Speaker 1: make it feasible for them to see the idea through 53 00:03:13,960 --> 00:03:17,720 Speaker 1: whatever it was. And there a lot of Trump's reversals 54 00:03:17,800 --> 00:03:21,000 Speaker 1: of Obama era rules seem to be bumping up against 55 00:03:21,000 --> 00:03:25,480 Speaker 1: the Administrative Procedure Act. Have any of the courts ruled 56 00:03:25,639 --> 00:03:29,760 Speaker 1: on that yet, Well, there have been prior rulings, particularly 57 00:03:29,760 --> 00:03:33,200 Speaker 1: with respect to one environmental rule, where the courts said, hey, 58 00:03:33,280 --> 00:03:37,160 Speaker 1: you can't just do this arbitrarily. The thing with the 59 00:03:37,200 --> 00:03:41,400 Speaker 1: Administrative Procedure Act is rules and regulations that could add 60 00:03:41,400 --> 00:03:43,160 Speaker 1: it to the books have to have notice in comment 61 00:03:43,200 --> 00:03:45,960 Speaker 1: through it after their first announced and then ostensibly the 62 00:03:46,000 --> 00:03:49,640 Speaker 1: final rule is supposed to reflect that process. Now, if 63 00:03:49,680 --> 00:03:51,560 Speaker 1: you want to take something off the books, you have 64 00:03:51,640 --> 00:03:54,000 Speaker 1: to follow the same process, basically in reverse. You have 65 00:03:54,080 --> 00:03:57,840 Speaker 1: to retrace your steps. So something that shortcuts that process 66 00:03:57,880 --> 00:04:01,000 Speaker 1: is sometimes frowned upon by the courts. Well, Andrew, when 67 00:04:01,000 --> 00:04:04,840 Speaker 1: you have the National Venture Capital Association suing, presumably they 68 00:04:04,880 --> 00:04:09,160 Speaker 1: have some money to actually litigate this. Well, how strong 69 00:04:09,200 --> 00:04:13,240 Speaker 1: a case is there against what the Trump administration did here? Well, 70 00:04:13,280 --> 00:04:14,720 Speaker 1: you think they'd have money or at least they know 71 00:04:14,760 --> 00:04:18,440 Speaker 1: where to get it, right. Um, I think they have 72 00:04:18,600 --> 00:04:22,000 Speaker 1: a reasonably good case because what the court, what the 73 00:04:22,040 --> 00:04:26,400 Speaker 1: administration functionally did here was killed this thing before it 74 00:04:26,400 --> 00:04:28,560 Speaker 1: took effect. And it's a little bit of a puzzlement 75 00:04:28,600 --> 00:04:32,640 Speaker 1: because you have Trump, the pro business president versus Trump 76 00:04:32,680 --> 00:04:38,000 Speaker 1: the anti administration, anti immigration president. Uh And this is 77 00:04:38,080 --> 00:04:40,159 Speaker 1: a policy that would have seemed to have straddled vote 78 00:04:40,160 --> 00:04:42,640 Speaker 1: camps and it looks like the anti immigration mindset one 79 00:04:42,720 --> 00:04:48,400 Speaker 1: out Andrew in the plaintiffs are some of the plaintiffs 80 00:04:48,440 --> 00:04:51,680 Speaker 1: are actually entrepreneurs who were here and had to move 81 00:04:52,400 --> 00:04:55,600 Speaker 1: to a different country to set to set up there 82 00:04:55,760 --> 00:04:59,760 Speaker 1: keep up their business. Tell me about one of them. Uh, 83 00:05:00,040 --> 00:05:02,200 Speaker 1: they were a pair of Indian brothers who were trying 84 00:05:02,240 --> 00:05:04,800 Speaker 1: to set up something similar to pay Pal. It was 85 00:05:04,839 --> 00:05:10,479 Speaker 1: a way to uh do electronic credit card processing, particularly 86 00:05:10,480 --> 00:05:15,360 Speaker 1: for recurrent payments. And they had set up a corporation 87 00:05:15,839 --> 00:05:18,679 Speaker 1: in Delaware and they were all set to go here, 88 00:05:18,760 --> 00:05:24,560 Speaker 1: except now they're not. And there's also someone who went 89 00:05:24,600 --> 00:05:27,000 Speaker 1: to who had to go to Canada. So there are 90 00:05:27,120 --> 00:05:30,720 Speaker 1: just waiting to see what happens with this lawsuit at 91 00:05:30,760 --> 00:05:33,200 Speaker 1: this point. Yes, the guys that we have is eventually 92 00:05:33,240 --> 00:05:37,800 Speaker 1: the nbc AS attorneys are going to file for injunctive 93 00:05:37,800 --> 00:05:43,760 Speaker 1: relief to um prevent this indefinite delay or or delay 94 00:05:43,880 --> 00:05:47,919 Speaker 1: followed by execution from going forward. All right, well, we 95 00:05:48,040 --> 00:05:50,800 Speaker 1: will keep into into touch with you so you can 96 00:05:50,920 --> 00:05:52,960 Speaker 1: keep us in tune and what's going on with this 97 00:05:53,200 --> 00:05:56,400 Speaker 1: rule which has attracted a lot of attention. That's Andrew Harris. 98 00:05:56,440 --> 00:05:58,320 Speaker 1: He's a Bloomberg News legal reporter.