The new act, America Competes Act 2022 presented in the US House of Representatives with the aim to attract entrepreneurs and investors around the globe.

President of the United Nations, Joe Biden, has shown his support for newly introduced legislation, America Competes Act, 2022, which according to him will make the supply chains stronger.

The bill COMPETES Act of 2022, which was presented in the US House of Representatives on Tuesday, suggests opening new vistas for skillful people from across the globe with a new startup visa.

According to the president, Briden, the legislation is a crucial step towards the advancement of legislation that will make the supply chains more vigorous and rejuvenate the innovation mechanism of the economy of the country.

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With the help of the Act, Biden planned to surpass the economy of China and other countries of the world in the coming decades.

The other important aspect of the Act is the amendment of the Immigration and Nationality Act. The amendment will create a new category of “W” non-immigrants for entrepreneurs, who have ownership in a startup entity. The category essentially comprises employees of a startup entity, as well as their spouses and children.

Impact of COMPETES Act of 2022

House Speaker Nancy, who released the bill, stated that when the Bill gets signed and become the following step need to be taken-

• The Act will direct the Secretary of Homeland Security to set guidelines for foreign nationals with an ownership interest in a startup entity, to self apply for lawful permanent resident status as an immigrant entrepreneur. However, for that purpose, the entity establishes a confirmed track record of success via the creation of employment and notable revenue generation or receipt of investment capital.
•  The Act will direct the Secretary of Homeland Security to set guidelines for foreign nationals with an ownership interest in a startup entity, to self apply for the category as a W-1 non-immigrant, and to obtain attachments of such category for up to eight years. However, they can apply only when the entity meets set growth benchmarks.
• The Act will also furnish only a limited number of W-2 visas for those who are crucial for the development and success of the startup entity if the startup acts as the base for the W-1 status of a founder.
• Essentials for filing W-1

According to the bill, the Secretary of Homeland Security will have the discretion to categorize an individual as a W-1 non-immigrant for three years initially only if the person has an ownership interest of at least 10 percent in a startup.

Further, that foreign person will also play a prominent and functioning role in the operations or management of a startup entity. If the individual does not have the above, the applicant must have the skill, knowledge, experience to help the startup with the development and success of the business.

The startup firm must have achieved at least USD 250,000 in qualifying investments from any qualified investors or at least USD 100,000 in qualifying government grants or awards in the 18 months preceding the filing of the petition, according to the bill.

Exemptions

Particular foreign nationals (and their spouses and children) who have acquired a doctoral degree in science, engineering, or mathematics, a technology from a foreign institution or from a qualified US research institution, is and if it is equal to a doctoral degree given by a qualified US research institution are exempt from the numerical limits on immigrant visas under the bill.

Purpose 

Biden announces that the recommendations in the bill by the House and Senate define the kind of transformational investments in the American industrial base and research and development. That will eventually help the country to lead the global economy and develop and grow several opportunities for middle-class families. Biden said-

“They will help bring manufacturing jobs back to the United States and they are squarely focussed on easing the sort of supply chain bottlenecks like semiconductors that have led to higher prices for the middle class.”

He further said’-

“Building on the historic investments in the Bipartisan Infrastructure Law that I signed last year — and on signs of progress like last week’s Intel announcement and today’s GM announcement — comprehensive competitiveness legislation will power our economy to create good-paying jobs for all Americans, no matter where you live or whether you have a college degree, and will help tackle the climate crisis.”

US House Speaker Pelosi threw light on the importance of the Act and stated that the act is a step to take the US into the future. She said the Act to be goal and result-oriented that will ultimately strengthen and enrich the country, economically and financially. It will also advance the leadership of the country in the world.

Chairman of the House Foreign Relations Committee, Gregory Meeks also stated that the act is a step towards strengthening the security, economy, and global leadership. He also stated that the legislation will effectively help the country to compete with China, and go ahead by creating more opportunities and overcoming challenges in the 21st century.

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