New USCIS Policy Increases Scrutiny on Adjustment of Status Applications for Green Card Applicants

U.S. Citizenship and Immigration Services (USCIS) issued a policy memorandum (PM-602-0199) on May 22, 2026, taking a new position that adjustment of status for permanent residency applicants be granted only in extraordinary circumstances. 

The final stage of the permanent residency (also known as the green card) process can be completed by either: (1) filing an adjustment of status application within the United States through USCIS for adjudication within the United States or (2) submitting an immigrant visa application at a U.S. embassy or consulate abroad through a process known as consular processing. The new policy does not bar applicants from applying for adjustment of status. Rather, it directs applicants to follow the “regular consular processing of immigrant visas” and complete this final stage of permanent residency at a U.S. embassy or consulate abroad. The memorandum also notes that if an applicant were to apply for adjustment of status, the applicant would need to make a showing of extraordinary circumstances for USCIS to exercise favorable discretion and grant the request.

In adjudicating adjustment of status requests, the memorandum advises USCIS officers to determine whether “approval of the alien’s adjustment of status application is in the best interest of the United States,” further directing officers to consider the totality of the circumstances and “weigh all positive and negative factors, including family ties, immigration status and history, prior violations of immigration laws, the applicant’s moral character, and any other relevant factor that bears on determining whether the alien warrants a favorable exercise of discretion.”

Should USCIS deny an adjustment of status request based on discretionary grounds, it is required to issue a written denial notice explaining the positive and negative factors considered and describing why the negative factors outweigh the positive ones.

Practical Implications 

• While the memorandum does not include an effective date or whether it is applicable to pending cases, it applies to all individuals who have been inspected and paroled and inspected and admitted into the United States. For employers, this means that the new policy applies to all employment-based nonimmigrant visa holders, such as those in H-1B, L-1, or O-1 status, among others.
• As an employer, you should be prepared to discuss filing options with your employees in the green card process. This may include evaluating whether consular processing would be a better option to pursue, understanding that this avenue could lead to the employee spending extended time abroad. 
• Employers should assess feasibility of transitioning employees who hold a nonimmigrant visa classification with strict nonimmigrant intent to a classification that allows for dual intent (H-1B and L-1). Holding a dual intent classification may provide for more flexibility during the final stage of the green card process. 
• Adjustment of status applications will undergo more extensive scrutiny, likely leading to extended processing times. We anticipate an increase in the issuance of Requests for Evidence (RFEs) and Notices of Intent to Deny (NOIDs) for adjustment of status applications. 

• Adjustment of status applicants should include positive discretionary factors to show a grant of favorable discretion is warranted in their applications. Employers may wish to work with employees nearing the final stage of the green card process in identifying favorable factors that can be included in an adjustment of status application. These can include ties to family members in the United States, value and service to the community, history of employment, history of taxes paid, compliance with immigration laws, etc. 

  The factors that USCIS generally considers when making discretionary decisions can be found within the USCIS policy manual: Chapter 8 - Discretionary Analysis | USCIS.

We anticipate that the policy memorandum will be challenged. We are reviewing all updates and will provide information as this further develops. Please contact experienced counsel for legal advice related to your specific situation.