WEBVTT - Trump Sued Over Entrepreneur Rule Repeal (Audio)

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<v Speaker 1>The Trump administration is being sued again over another delay

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<v Speaker 1>and likely reversal of an Obama rule. This one would

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<v Speaker 1>encourage foreign entrepreneurs to build businesses in the US. The

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<v Speaker 1>initiative is appropriately entitled the International Entrepreneur Rule. It was

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<v Speaker 1>designed to give foreign entrepreneurs who don't qualify for existing

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<v Speaker 1>visa programs the opportunity to stay in the US temporarily

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<v Speaker 1>to grow their startups. The National Venture Capital Association has

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<v Speaker 1>sued the Trump administration over its decision to delay the

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<v Speaker 1>rule until at least March fifteen and likely eliminated joining

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<v Speaker 1>US is Andrew Harris, Bloomberg News legal reporter Andrew the

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<v Speaker 1>initiative had broad support in the tech industry. Tell us

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<v Speaker 1>a little more about it, well, June, I think you

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<v Speaker 1>summed it up pretty well. The idea was that if

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<v Speaker 1>there's going to be a startup tech business in the world,

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<v Speaker 1>why not have it here. So the Obama administration had

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<v Speaker 1>set up a rule that went into effect or at

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<v Speaker 1>least hit the books right for President o Bottom left

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<v Speaker 1>office in January that would have allowed foreign entrepreneurs who

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<v Speaker 1>had sufficient backing a quarter of a million dollars in

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<v Speaker 1>venture capital or a hundred thousand dollars in government grants

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<v Speaker 1>to come here for a renewable thirty months term called parole,

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<v Speaker 1>during which time they could stay and grow their businesses.

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<v Speaker 1>And the Trump administration, just days before it was to

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<v Speaker 1>officially take effect in July, said we're going to punt

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<v Speaker 1>it into next year with an eye toward rescinding it. Andrew,

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<v Speaker 1>what is the Trump administration's rationale for rescinding this rule?

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<v Speaker 1>You know, that's a really good question. The official explanation

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<v Speaker 1>was that back in January, the President issued an executive order,

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<v Speaker 1>not the immigration order that we know, but two days

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<v Speaker 1>before that, and order addressed to securing the nation's borders

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<v Speaker 1>and enforcing laws where it comes to this non resident

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<v Speaker 1>status called parole. And at least that was a sidded

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<v Speaker 1>reason for reconsidering the Obama administration's initiative here. And what's

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<v Speaker 1>the lawsuit based on, Well, the lawsuit is based on

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<v Speaker 1>the notion that they just dropped in July. They dropped

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<v Speaker 1>this delay without any prior public notice or consultation, uh

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<v Speaker 1>and said that they're doing it with an eye tour

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<v Speaker 1>taking public comment about killing the rule. And the National

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<v Speaker 1>Venture Capital Association says, hey, you can't know, effectively kill

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<v Speaker 1>it without getting public comment. First, Andrew, this notion of

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<v Speaker 1>parole is a little different than some of the other

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<v Speaker 1>immigration issues we've been talking about with refugees and um

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<v Speaker 1>and you know, the DOCU program. What what exactly does

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<v Speaker 1>parole mean in terms of the status that these entrepreneurs

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<v Speaker 1>would get if the rule had does go into effect,

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<v Speaker 1>well did go into effect, these bar and entrepreneurs would

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<v Speaker 1>be able to stay here for thirty months, renewable to

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<v Speaker 1>up to sixty amounts or five years under certain circumstances.

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<v Speaker 1>They could even have families here during that time, during

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<v Speaker 1>which they could develop their businesses. It's not a path

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<v Speaker 1>to residency or citizenship, but it was a way to

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<v Speaker 1>make it feasible for them to see the idea through

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<v Speaker 1>whatever it was. And there a lot of Trump's reversals

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<v Speaker 1>of Obama era rules seem to be bumping up against

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<v Speaker 1>the Administrative Procedure Act. Have any of the courts ruled

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<v Speaker 1>on that yet, Well, there have been prior rulings, particularly

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<v Speaker 1>with respect to one environmental rule, where the courts said, hey,

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<v Speaker 1>you can't just do this arbitrarily. The thing with the

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<v Speaker 1>Administrative Procedure Act is rules and regulations that could add

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<v Speaker 1>it to the books have to have notice in comment

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<v Speaker 1>through it after their first announced and then ostensibly the

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<v Speaker 1>final rule is supposed to reflect that process. Now, if

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<v Speaker 1>you want to take something off the books, you have

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<v Speaker 1>to follow the same process, basically in reverse. You have

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<v Speaker 1>to retrace your steps. So something that shortcuts that process

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<v Speaker 1>is sometimes frowned upon by the courts. Well, Andrew, when

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<v Speaker 1>you have the National Venture Capital Association suing, presumably they

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<v Speaker 1>have some money to actually litigate this. Well, how strong

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<v Speaker 1>a case is there against what the Trump administration did here? Well,

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<v Speaker 1>you think they'd have money or at least they know

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<v Speaker 1>where to get it, right. Um, I think they have

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<v Speaker 1>a reasonably good case because what the court, what the

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<v Speaker 1>administration functionally did here was killed this thing before it

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<v Speaker 1>took effect. And it's a little bit of a puzzlement

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<v Speaker 1>because you have Trump, the pro business president versus Trump

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<v Speaker 1>the anti administration, anti immigration president. Uh And this is

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<v Speaker 1>a policy that would have seemed to have straddled vote

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<v Speaker 1>camps and it looks like the anti immigration mindset one

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<v Speaker 1>out Andrew in the plaintiffs are some of the plaintiffs

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<v Speaker 1>are actually entrepreneurs who were here and had to move

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<v Speaker 1>to a different country to set to set up there

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<v Speaker 1>keep up their business. Tell me about one of them. Uh,

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<v Speaker 1>they were a pair of Indian brothers who were trying

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<v Speaker 1>to set up something similar to pay Pal. It was

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<v Speaker 1>a way to uh do electronic credit card processing, particularly

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<v Speaker 1>for recurrent payments. And they had set up a corporation

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<v Speaker 1>in Delaware and they were all set to go here,

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<v Speaker 1>except now they're not. And there's also someone who went

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<v Speaker 1>to who had to go to Canada. So there are

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<v Speaker 1>just waiting to see what happens with this lawsuit at

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<v Speaker 1>this point. Yes, the guys that we have is eventually

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<v Speaker 1>the nbc AS attorneys are going to file for injunctive

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<v Speaker 1>relief to um prevent this indefinite delay or or delay

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<v Speaker 1>followed by execution from going forward. All right, well, we

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<v Speaker 1>will keep into into touch with you so you can

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<v Speaker 1>keep us in tune and what's going on with this

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<v Speaker 1>rule which has attracted a lot of attention. That's Andrew Harris.

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<v Speaker 1>He's a Bloomberg News legal reporter.