The Big Story: Immigration in play in reconciliation bill, but path unclear
As the House eyes a path forward on the reconciliation bill, newly-added language would create temporary protections for millions of undocumented immigrants, which could make it easier for foreign-born innovators, founders, and STEM talent to stay and work in the U.S. The provision currently on the table is short of the initial proposal, which created a pathway to citizenship, and its fate will be determined as House Democrats continue to negotiate and the Senate Parliamentarian weighs in on whether the provision can be included under procedural rules. The House had planned for a vote on the reconciliation bill today, but it could be pushed as negotiations continue.
The new provision would make undocumented immigrants who arrived in the U.S. prior to 2011 eligible for temporary parole. That’s a change from the previously proposed effort that called for a registry allowing immigrants who have resided in the U.S. since 2010 and have shown “good moral character,” to apply for permanent status, which the Senate Parliamentarian rejected. Other provisions under consideration include efforts to support employment-based immigrants, allowing some with approved petitions who have been waiting more than two years, to gain permanent residence earlier. This effort could help to bolster STEM talent essential to the growth of startups and technology companies, and it could more broadly reduce the immigration backlog for those who have been waiting years for green cards.
The bill could continue changing in the House and then as the Senate considers it. Some House Democrats want to trim the immigration proposals, while others say they won’t support the bill if it doesn’t include a pathway to citizenship. Then the bill would need to get the green light from the Senate Parliamentarian and then get the support from all 50 Senate Democrats.While these are important steps, none of the presented proposals are a complete solution to the U.S.’ immgiration crisis. It is critical that policymakers continue to push efforts to support the talent pool needed for our startup ecosystem.
Policy Roundup:
Reps ask Census, NSF to collect data on startups. In a letter to the Director and Acting Director of the National Science Foundation (NSF) and Census Bureau this week, 11 members of Congress pushed for better collection of data about technology startups. If collected and disseminated, the data will help policymakers, researchers, and the industry better assess the current state of the startup ecosystem and develop and evaluate startup-related policies.
Join us in urging the Biden administration to protect DACA. The recent ruling in the Fifth Circuit which found DACA unlawful has created uncertainty for Dreamers across the U.S., many of whom are entrepreneurs and innovators who bolster our economy. Members of the startup ecosystem can join a letter we’re organizing, urging the administration to protect DACA recipients and provide a permanent pathway to citizenship for all Dreamers. Sign on before November 17th here.
Policymakers discuss online marketplaces, largely skip startup perspective. A Senate hearing this week addressed concerns about the sale of unsafe, counterfeit, or stolen goods online, but the conversation largely skipped over concerns facing e-commerce startups. Members discussed potential legislation purportedly targeted to reduce those problems; for example the INFORM Consumers Act, which would increase transparency but require sometimes-personal disclosures by almost anyone who sells anything on the Internet, and the SHOP SAFE Act, which would force e-commerce startups to affirmatively screen every user post and expose them to more litigation over user conduct. Relatedly, this week two senators introduced a version of the INFORM Consumers Act as an amendment to the National Defense Authorization Act (NDAA)—annual defense spending legislation that is viewed as must-pass and is often used as a mechanism to pass unrelated policy reforms. Yet as Congress considers legislating online marketplaces, it’s vital they remember e-commerce extends far beyond just large tech companies and that legislation in this area could have an outsized impact on startups and small businesses and individuals that rely on them.
Senators shine light on rise of abusive patent litigation in west Texas. This Tuesday, Senators Patrick Leahy (D-Vt.) and Thom Tillis (R-N.C.) elevated concerns about the rapidly rising number of patent lawsuits filed in the Western District of Texas, where nearly 25 percent of all patent cases in the country are currently pending before one judge. Letters to the Chief Justice and the Patent and Trademark Office criticized this “extreme concentration of patent litigation” before a single judge that has been accused of soliciting unwinnable patent cases and attracting patent assertion entities, or so-called “patent trolls.” Patent litigation is notoriously expensive and costs startups time and resources they need to further their innovation and judge shopping facilitates abusive litigation and calls into question the integrity of the U.S. patent system.
Europe launches ESNA to bolster their startup ecosystem. On Wednesday, a collection of European nations launched the European Startup Nations Alliance, a body designed to support implementation of the best practices to accelerate startup growth in Europe. In a blog post this week, we argue U.S. policymakers should implement similar best practices here at home—like creating a Startup Visa, expanding opportunities for startups to access capital, and reducing regulatory burdens, for example—to keep the U.S. startup ecosystem globally competitive.
Policymakers target stablecoins. A report from the Federal Deposit Insurance Corporation, the President’s Working Group, and the Office of the Comptroller of the Currency released a report l this week asserting that Congress should implement bank like rules on stablecoins—a currency that has lower fluctuations and a value tied to real world fiat currency. Restricting currencies like cryptocurrency and now stablecoin could have negative ramifications for startups that utilize stablecoins. Although greater regulatory certainty will help guide startups, policymakers should be cautious not to implement overly burdensome regulations that stifle startups.
Startup Roundup:
#StartupsEverywhere: Philadelphia, Pennsylvania. Authentise is a software company that is working to enable 3D printing systems to operate more efficiently by using artificial intelligence and other digital tools. We sat down with Andre Wegner, CEO and Founder, to learn about what led him to start the company, the barriers the U.S. immigration system creates to hiring the talent he needs, and how policymakers can look to additive manufacturing to fill gaps in existing supply chains.
A Conversation with Startup Leaders: Expanding Diversity in the Startup Ecosystem. On Friday, Nov. 16th at 12 p.m. ET, Engine will convene a panel to discuss how and why the startup ecosystem must expand diversity within its ranks—from founders to engineers and investors. During this virtual event a panel of startup founders and ecosystem leaders will discuss the challenges that underrepresented founders face and how policymakers can better support their work. This coincides with Engine publishing an assessment of existing challenges and how policymakers can create opportunities to make the startup ecosystem more equitable. You can RSVP here.
