Coalition Letter to President Trump Outlines Why IER Should Not Be Rescinded
WASHINGTON, DC – The National Venture Capital Association (NVCA) today led a group of 31 business leaders, investors, and organizations committed to American entrepreneurship in calling on President Trump to not rescind the International Entrepreneur Rule (IER). The “Rescission of the International Entrepreneur Rule” proposed by the Department of Homeland Security (DHS) has been pending review with the Office of Management and Budget since November, placing IER on uncertain footing and threatens the benefits to the U.S. economy that come from the IER.
Talented immigrant entrepreneurs are already applying through the IER program and making plans to grow the next generation of iconic American companies as a result of a December 1, 2017 court order from Judge James E. Boasberg of the U.S. District Court of the District of Columbia. Judge Boasberg granted summary judgment for NVCA, entrepreneurs, and startups after they challenged the DHS’s delay of IER. The ruling compelled DHS to end its delay and begin accepting applications of foreign entrepreneurs who wish to grow new companies in the U.S. Despite the court ruling and broad support from venture investors, startups and the business community, DHS continues to push for repeal of a common sense, pro-jobs policy that is in alignment with the president’s economic agenda.
“The International Entrepreneur Rule (IER) allows world-class immigrant entrepreneurs to build new companies in the United States if the startup has substantial potential for rapid growth and job creation,” wrote NVCA and other signatories in a letter to President Trump. “During your State of the Union speech, you stressed the need for a ‘merit-based immigration system — one that admits people who are skilled, who want to work, who will contribute to our society, and who will love and respect our country.’ IER applicants are emphatically all of those things and as such deserve your full support.”
“Unfortunately, ‘Rescission of the International Entrepreneur Rule’ has been pending review with the Office of Management and Budget since November 17, 2017. This potential new rule places a dark cloud over IER, as immigrant entrepreneurs are uncertain of how long IER will be in place,” continued the letter. “The rescission rule stifles investment into new companies with foreign-born founders, which ultimately costs the U.S. economy. It also exacerbates an alarming trend of elite entrepreneurs launching successful startups outside the United States. Twenty years ago our country’s share of global venture investment was 90%, but that number has dropped precipitously to 81% in 2006 and to 53% in 2017. In 2016, China was home to six of the ten largest venture capital investments in the world. If we continue to push entrepreneurs overseas, our share of global investment will continue to decrease.”