USCIS Announces New Policy Limiting Adjustment of Status Eligibility

On May 22, 2026, USCIS issued a policy memorandum announcing that filing an I-485 adjustment of status (“AOS”) application in the United States will be treated as an “extraordinary” form of relief and that most individuals seeking permanent residence should instead complete immigrant visa processing abroad through a U.S. consulate.

The announcement represents one of the most significant shifts in employment-based and family-based immigration processing policy in years. While the memo frames the change as a return to the “original intent” of the law, it departs sharply from decades of routine adjudicatory practice under which many eligible applicants could apply for permanent residence from within the United States.

The policy is expected to have substantial consequences not only for employers sponsoring foreign national workers, but also for families and individuals pursuing permanent residence through employment, family, or self-sponsored immigrant categories.

What USCIS Announced About Adjustment of Status

USCIS stated that officers should treat AOS as discretionary relief available only in “extraordinary circumstances,” and that applicants generally should pursue immigrant visa processing abroad through the Department of State called “consular processing” (“CP”).

Historically, AOS under INA §245 has been widely used by eligible applicants already present in the United States in lawful status, particularly in employment-based cases. Although AOS has always been discretionary as a legal matter, USCIS has long adjudicated most otherwise-eligible cases under established eligibility standards rather than as exceptional requests for relief.

The new memo signals a major policy shift toward restrictive discretionary adjudication.

USCIS specifically emphasized:

• Temporary visas are intended for limited-duration stays tied to a specific purpose;
• Nonimmigrant status should not serve as a “first step” toward permanent residence;
• CP abroad should become the default path for obtaining immigrant visas; and
• USCIS resources should instead be focused on other agency priorities.

Who Could Be Impacted by The Adjustment of Status Policy

Potentially affected groups include:

• Employment-based adjustment applicants;
• H-1B, L-1, TN, O-1, and other temporary workers pursuing permanent residence;
• Family-based adjustment applicants;
• Self-petitioners, including EB-1 extraordinary ability and National Interest Waiver applicants;
• Dependent spouses and children; and
• Individuals relying on concurrent filing strategies.

This development may be particularly disruptive in cases where applicants have structured long-term personal, financial, educational, or employment decisions around remaining in the United States during the green card process.

Practical Employer Concerns

For employers, the policy could introduce substantial workforce planning and retention complications.

If USCIS begins denying or declining to favorably exercise discretion in AOS cases more broadly, employers could face:

• Increased reliance on CP;
• International travel disruptions for employees and dependents;
• Extended periods abroad while immigrant visas are processed;
• Increased uncertainty surrounding onboarding and long-term workforce continuity;
• Higher legal and logistical costs; and
• Greater risk of project interruption or employee attrition.

This issue is particularly important because many employers do not pay for the AOS process itself, leaving employees and their families to absorb the additional costs and disruption associated with overseas immigrant visa processing.

Consular Processing Delays Could Magnify the Impact

The practical consequences of this policy may be compounded by ongoing delays and increased scrutiny at U.S. consulates abroad.

Recent changes involving expanded social media vetting and additional security screening measures have already contributed to appointment disruptions and nonimmigrant visa processing delays in multiple jurisdictions. As discussed in our recent alert regarding H-1B visa appointment cancellations affecting Indian nationals and U.S. employers, consular processing timelines have become increasingly unpredictable in 2026.

If large numbers of applicants who previously would have adjusted status domestically are instead funneled into the immigrant visa process abroad, existing backlogs and appointment shortages could worsen significantly.

This may create:

• Longer immigrant visa appointment wait times;
• Increased administrative processing delays;
• Greater travel uncertainty for employees and families; and
• Additional operational challenges for U.S. employers managing globally mobile workforces.

What Remains Unclear

At this stage, many operational questions remain unanswered, including:

• How USCIS will define “extraordinary circumstances”;
• Whether the policy will be applied uniformly across categories;
• How aggressively discretion will be exercised in pending and future filings;
• Whether certain categories or fact patterns will continue to see favorable adjudication; and
• Whether litigation challenging the policy will follow.

The memo also raises significant questions regarding consistency with decades of agency adjudication practice and the statutory framework governing adjustment eligibility.

What Employers and Individuals Should Do Now

Given the potential scope of this policy change, employers and applicants should carefully review pending and planned permanent residence strategies.

Considerations may include:

• Evaluating timing for pending or anticipated filings;
• Reviewing international travel and visa renewal risks;
• Assessing backup work authorization strategies;
• Planning for possible CP requirements;
• Preparing employees and family members for longer overseas processing timelines; and
• Closely monitoring additional USCIS implementation guidance and litigation developments.

At this point, the full operational impact remains uncertain, including the treatment of pending AOS matters. However, if USCIS applies this policy broadly, it could fundamentally reshape how many employment-based and family-based green card cases are processed moving forward.

We are actively reviewing the memorandum and monitoring implementation developments. Employers and individuals with questions regarding pending or future permanent residence strategies should consult experienced immigration counsel to assess potential risks and planning considerations under this evolving policy landscape.