On May 22, 2026, U.S. Citizenship and Immigration Services (USCIS) announced a new policy memorandum (PM-602-0199) stating that I-485 adjustment of status (AOS) applications are a discretionary form of relief and should be viewed as an “extraordinary” benefit rather than a routine pathway to permanent residence. USCIS also issued a press release emphasizing that it views immigrant visa processing via a U.S. Consulate abroad to be the default method for completing the green card process.
Background
As a matter of law, even when an applicant meets all statutory eligibility requirements, approval of an adjustment of status application is discretionary. The memo highlights that AOS is granted as a matter of “administrative grace” and applicants bear the burden of demonstrating that they merit a favorable exercise of discretion.
What This Means for I-485 Adjudications
The limited guidance in the memo instructs adjudicators to evaluate adjustment applications under a “totality of the circumstances” framework. Officers are directed to weigh both positive and negative factors, including but not limited to:
- Compliance with immigration laws and prior status conditions
- Any history of fraud, misrepresentation, or unauthorized employment
- Whether the applicant has failed to depart the United States as expected
- Family ties, equities, and overall suitability for permanent residence
Importantly, the memorandum notes that simply meeting eligibility requirements or lacking negative factors may not be sufficient; applicants may need to demonstrate “unusual or outstanding equities” to warrant approval in discretionary cases.
Practical Implications
This policy signals a more restrictive posture toward adjustment of status adjudications. Applicants and petitioners should expect increased scrutiny and should be prepared to present strong, well-documented equities and evidence of compliance with immigration laws. It remains unclear how this guidance will affect pending adjustment of status cases.
Importantly, the memo does not preclude I-485 adjustment filings, nor has USCIS indicated that pending applications will be denied solely on the basis of this new policy memo. Similar policy memos emphasizing USCIS discretion in other immigration contexts initially created a good deal of concern but yielded fewer practical impacts than anticipated. Still, it is important for individuals and their employers to seriously consider this guidance and plan proactively.
Proactive Steps
Amid the evolving guidance, LAC will work closely with clients to help you proactively assess exposure and align your strategies. LAC recommends the following proactive measures as we continue to assess how this unfolds.
For Employers:
- Identify sponsored employees with pending or anticipated adjustment of status applications who may be impacted
- Work closely with immigration counsel to evaluate the impact on dependent spouses and children, particularly those nearing age-out thresholds
- Consider whether consular processing may offer a more advantageous pathway for certain employees, based on their specific circumstances
- Review filing timelines for adjustment applications and plan for potential delays or additional requests for evidence
For Employees:
- Maintain lawful nonimmigrant status at all times, and as always – avoid unauthorized employment and other potential violations
- Consult with immigration counsel before making any significant travel or immigration-related decisions during this period of evolving policy guidance
- Proactively prepare documentation of favorable factors, such as consistent employment, tax compliance, community engagement, and family relationships
- Carefully evaluate the benefits and risks of adjustment of status versus consular processing based on individual circumstances
Larrabee Albi Coker LLP will continue to monitor developments and advise clients on how this policy memorandum may impact pending and future adjustment of status applications.
This update was prepared by Fausta M. Albi, Partner – Larrabee Albi Coker LLP.
