The rule would allow some foreign start-up founders to stay in the United States for up to five years to develop their businesses.
Washington: A federal judge on Friday ordered the Department of Homeland Security (DHS) to rescind its delay of a rule that allows some foreign entrepreneurs to stay in the United States to grow their companies, court documents show.
Judge James Boasberg of US District Court for the District of Columbia ruled in favour of a lawsuit filed by a US venture capitalist group in September challenging a delay by DHS of the International Entrepreneur Rule.
In the lawsuit, the National Venture Capital Association argued that the Trump administration bypassed proper procedures when it delayed the International Entrepreneur Rule, which had been due to go into effect in July 2017.
The trade group was later joined by several tech start-ups active in the United States that were founded by foreign entrepreneurs who wanted to stay in the country and work with their businesses through the entrepreneur rule but are now unable to.
The rule, proposed by the administration of President Barack Obama, would allow some foreign start-up founders to stay in the United States for up to five years to develop their businesses.
Instead, in July the administration of President Donald Trump pushed back implementation to March 2018, and said it was "highly likely" to ultimately rescind the rule.
Boasberg, in his ruling issued on Friday, agreed with the lawsuit's claim that the government's actions violated the Administrative Procedure Act, which requires advance notice of new rules.
"This decision is an important reminder that this administration must comply with the law and allow the public to have a voice during the agency rule-making process," Leslie Dellon, an attorney at the American Immigration Council, said in a statement.