House bill removes green card cap for STEM doctorates, introduces startup visa

Biden seeks Republican support, urges House and Senate to quickly resolve their differences

A new bill passed by the US House to boost American competitiveness with China includes a proposal to exempt STEM doctorate holders from caps on green cards or permanent residency.

The America Competes Act passed 222-210, largely along party lines Friday aims to improve supply chains for critical items and boost scientific research and innovation.

The bill “will ensure that America is preeminent in manufacturing, innovation and economic strength and can outcompete any nation,” House Speaker Nancy Pelosi said.

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The immigration related changes include extending the cap exemption to “health professions” and to master’s degree holders in certain fields deemed critical to US interests.

In addition, STEM students could claim “dual intent” status, meaning they could declare their interest in pursuing a career in the US after graduation rather than first returning to their home country.

Another adopted immigration amendment would create a special visa pathway for a limited number of scientists and engineers who are identified as contributing to the “national security innovation base.”

The same proposal was incorporated into the House version of the National Defense Authorization Act for Fiscal Year 2022 with bipartisan support, but it was removed during the final negotiations with the explanation that existing visa pathways could serve the same purpose.

Another provision creates a new classification of ‘W’ non-immigrant visas for foreign entrepreneurs, their families and ‘essential’ foreign workers in such startups.

The bill not only makes family members eligible to receive work permits, but also provides a pathway to a green card that can lead to American citizenship.

The entrepreneur needs to have an ownership stake of at least 10% in the startup, received during the 18 months prior to filing of the visa application, and at least $250,000 in investments from US citizens or organizations or at least $100,000 in government awards or grants.

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This startup needs to have been formed in the past five years. Unlike Canada, the UK and several other countries, the US currently does not have a startup visa.

Instead, an International Entrepreneur Rule (IER) enables eligible foreign entrepreneurs to stay in the US for two-and-a-half years, with the possibility of an extension of a similar tenure. It has similar investment criteria.

After a year of holding a ‘W’ visa, the America Competes Act permits adjustment to a green card. It has certain conditions relating to funding, turnover, job creation in addition to having an ownership interest in the startup and playing an active role in its management or operation.

The House version differs in several ways from the $250 billion bipartisan competition bill, the US Innovation and Competition Act, the Senate passed last June.

The two chambers will spend the next weeks hammering out the differences between the two bills and eventually send it to President Joe Biden’s desk.

Biden hailed the House for taking a critical vote “for stronger supply chains and lower prices, for more manufacturing – and good manufacturing jobs – right here in America, and for outcompeting China and the rest of the world in the 21st century.

“If House Republicans are serious about lowering prices, making our economy stronger, and competing with China from a position of strength, then they should come to the table and support this legislation, which does just that,” he stated.

National Venture Capital Association President and CEO Bobby Franklin also welcomed House passage of the America Competes Act which included a Startup Visa.

“A Startup Visa has been an NVCA top priority for many years and we are thrilled to see it advance out of the House,” he said.

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“This concept has always enjoyed bi-partisan support because it allows the world’s top entrepreneurs to create new companies and jobs here in the United States,” Franklin said.

“As the House and Senate move forward on a US competitiveness package, we urge them to recognize that a Startup Visa and the NVCA-endorsed Endless Frontier Act will make meaningful impacts in the discovery and advancement of new technologies and create economic opportunity for Americans.

“We also encourage policymakers to remove any counterproductive provisions that place unnecessary regulatory burdens on US startups.”