On May 21, 2026, U.S. Citizenship and Immigration Services (USCIS) issued a new policy memorandum that could significantly impact individuals applying for green cards through adjustment of status (AOS) inside the United States. The memorandum emphasizes that adjustment of status is a discretionary benefit and describes it as an “extraordinary” process that allows applicants to avoid immigrant visa (green card) processing abroad.

Key Policy Changes

Under the new guidance, USCIS officers are instructed to closely examine whether applicants should have pursued consular processing instead of applying for adjustment of status from within the United States. Even where applicants meet the legal requirements for adjustment, USCIS may deny applications as a matter of discretion after reviewing the “totality of the circumstances.”

This heightened discretionary review applies to the adjustment of status stage only and does not apply to the PERM labor certification or I-140 immigrant petition stages of the employment-based green card process. PERM applications filed with the U.S. Department of Labor and I-140 petitions filed with USCIS continue to be adjudicated under their existing statutory and regulatory standards.

Factors USCIS Will Consider

The memorandum identifies several negative factors officers may consider, including overstaying a visa, unauthorized employment, violations of immigration status, fraud, or false statements, and conduct inconsistent with the purpose of the applicant’s original visa or parole. USCIS also notes that applying for adjustment when consular processing is available may weigh against approval in some cases.

At the same time, USCIS states that positive factors such as strong family ties in the United States, long-term residence, employment history, good moral character, and contributions to the U.S. economy may support a favorable exercise of discretion.

Impact

The policy is expected to increase scrutiny of both family-based and employment-based adjustment applications, particularly for applicants who are no longer maintaining valid nonimmigrant status; have prior immigration violations; filed adjustment applications after overstaying a visa; or applied while in temporary visa categories that do not clearly allow immigrant intent.

Importantly, the policy does not preclude eligible individuals from filing applications for adjustment of status when otherwise permitted under existing law. Rather, the policy addresses the discretionary decision USCIS may later make when adjudicating the adjustment of status application, whether through paper review or following a USCIS interview.

Given the heightened discretionary review, applicants and employers should carefully evaluate pending and future adjustment filings and consider strengthening applications with evidence of positive equities and compliance with immigration laws. Applicants relying solely on a pending adjustment application for authorization to remain and work in the United States should also understand that a denial could lead to removal proceedings if no underlying nonimmigrant status is being maintained.

The USCIS guidance does not create a new statute or amend the Immigration and Nationality Act passed by Congress. Instead, it reflects USCIS’s interpretation and exercise of discretionary authority under existing law. Litigation challenging the policy memorandum, including arguments that portions of the guidance conflict with congressional intent and existing immigration statutes, is anticipated.

For advice or assistance evaluating how this policy may affect your pending or future adjustment of status application, contact the Taft Immigration team.