USCIS Updates Adjustment of Status Policy:

What Applicants Need to Know in 2026

What Changed Under the New USCIS Policy?

On May 21, 2026, USCIS issued a new policy memorandum (PM-602-0199) emphasizing that Adjustment of Status (AOS) under Section 245 of the Immigration and Nationality Act (INA) is a discretionary benefit and an extraordinary form of relief. USCIS reiterated that AOS is not intended to replace the traditional immigrant visa process through consular processing abroad.

While the memorandum does not eliminate or prohibit adjustment of status filings, it directs USCIS officers to apply closer scrutiny to AOS applications and to evaluate all relevant factors under a “totality of the circumstances” standard. Officers are instructed to consider whether an applicant could instead pursue immigrant visa processing through a U.S. consulate abroad.

Increased Discretionary Review for Adjustment of Status Applications

The guidance confirms that filing an AOS application is not inconsistent with maintaining dual-intent nonimmigrant status, such as H-1B or L-1 status. However, USCIS notes that simply maintaining valid dual-intent status does not automatically warrant a favorable exercise of discretion to grant AOS.

Under the new guidance, officers may consider several discretionary factors when reviewing an application, including:

Factors USCIS May Consider During Review

  • Any false statements or misrepresentations made to government agencies;
  • Violations related to admission, parole, or immigration filings;
  • Conduct inconsistent with the applicant’s nonimmigrant status or prior representations to immigration officials;
  • Immigration history and maintenance of status;
  • Family ties in the United States;
  • Evidence of good moral character; and
  • Any other relevant positive or negative discretionary factors.

Need guidance on an Adjustment of Status application?

USCIS officers now have broader discretion when reviewing certain AOS cases. If you have questions about eligibility, timing, or strategy, our team can help evaluate your options.

Contact Farmer Law PC

What Happens if USCIS Denies an Application on Discretionary Grounds?

If USCIS denies an application based on discretionary grounds, the officer must provide a written explanation outlining the positive and negative factors considered and explain why the negative factors outweighed the favorable equities.

Potential Impact on Employment-Based Green Card Cases

This policy may significantly impact employment-based green card cases and other applicants seeking permanent residence from within the United States. Applicants should expect increased scrutiny, particularly where USCIS believes consular processing may be a viable alternative.

Questions That Remain Unanswered

Importantly, several aspects of the policy remain unclear and additional USCIS guidance is expected. At this time, the memorandum does not clarify:

  • Whether the policy will affect pending AOS applications already filed with USCIS;
  • Whether certain categories of applicants may become restricted from filing AOS applications;
  • When or whether USCIS may begin limiting AOS eligibility inside the United States;
  • Which discretionary factors will carry the greatest weight in adjudications; or
  • What positive factors may be sufficient to overcome concerns and support approval of AOS within the United States rather than requiring consular processing.

We are continuing to monitor USCIS implementation of this policy and expect additional guidance and adjudication trends to develop in the coming months.

Farmer Law PC will continue to monitor developments with respect to these and other policy changes and will post updates on our blog as additional information becomes available.