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New USCIS policy memorandum changes green card processing approach to favor consular notification.

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Adjustment of status applications now intended to be reserved for “extraordinary circumstances,” though the policy does not define that standard.

Policy appears to create a higher bar for approval of adjustment of status applications filed from within the United States.

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On May 21, 2026, U.S. Citizenship and Immigration Services (USCIS) issued <a href="https://www.uscis.gov/sites/default/files/document/memos/PM-602-0199-AdjustmentOfStatusAndDiscretion-20260521.pdf">Policy Memorandum PM-602-0199</a> announcing a change in its approach to green card processing for individuals who apply for permanent residency from within the United States through the process known as “adjustment of status.”

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Under the new guidance, USCIS now treats consular processing—where applicants travel abroad to complete their green card interviews at a U.S. embassy or consulate—as the default expectation. The Memorandum states that adjustment of status within the United States should be reserved only for “extraordinary circumstances.”

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Notably, USCIS does not define what qualifies as extraordinary circumstances. Instead, immigration officers are instructed to exercise broad discretion and evaluate each case individually using a “totality of the circumstances” approach to determine whether an applicant may adjust status domestically or must process abroad.

Importantly, the Memorandum does not require all green card applications be processed abroad. We do not anticipate that this policy will result in blanket denials of I-485 adjustment of status applications filed from within the United States.

The right to file an I-485 application remains grounded in federal statute (INA § 245) and regulation (8 CFR § 1245), both of which set forth specific eligibility requirements. The Memorandum does not eliminate or override this statutory filing right for applicants who meet those requirements.

A Higher Bar for Adjustment of Status Approval. Under the new Memorandum, meeting all eligibility requirements under INA § 245 no longer guarantees that USCIS will approve an adjustment of status application filed from within the United States.

A “Totality of the Circumstances” Review. USCIS officers will now evaluate adjustment of status applications using a totality of the circumstances approach. This means officers may give greater weight to negative factors in an applicant’s record and may require applicants to submit additional evidence of positive factors. Ultimately, officers will determine on a case-by-case basis whether an applicant warrants a “favorable exercise of discretion.”

The Memorandum identifies the following as particularly significant negative factors:

Fraud or misrepresentation in any immigration matter

Entry into the United States (whether through admission or parole) in a manner that violated the laws, regulations, or policies in effect at the time

Conduct after admission that was inconsistent with the purpose of the applicant’s nonimmigrant status or parole

Failure to depart the United States as expected—particularly where the applicant could have pursued permanent residency through consular processing abroad

Increased Vetting and In-Person Interviews. We expect USCIS to continue heightened vetting and background checks for all applicants. Additionally, we anticipate that in-person adjustment interviews will be required for all applicants—including dependent family members—regardless of the filing category.

Impact on Dual Intent Categories (H-1B, L-1, and Their Dependents). The Memorandum suggests the new policy is less applicable to dual-intent nonimmigrant categories (H-1B, L-1, and their H-4 and L-2 dependents). However, it also states that maintaining dual-intent status is not sufficient, on its own, to warrant a favorable exercise of discretion to adjust status within the United States.

H-1B and L-1 holders are not necessarily shielded from heightened discretionary analysis merely by virtue of their dual-intent classification.

Impact on Pending I-485 Applications. The Memorandum does not include a grandfathering provision, suggesting that it may apply to pending I-485 applications that have not yet been approved.

Litigation. Denials may be difficult to challenge because USCIS is asserting that these decisions are largely insulated from judicial review. However, legal challenges to the new USCIS policy are expected.

Build a Strong Record of Positive Factors. We expect USCIS to require applicants to affirmatively demonstrate positive factors supporting approval—similar to the “good moral character” standards used in naturalization cases. While such evidence goes beyond what the statute technically requires, it falls within the broad “discretion” the Memorandum now emphasizes.

I-485 applications should include robust documentation of positive factors—such as family ties in the United States, property ownership, tax compliance, community involvement, and employment history—rather than relying solely on meeting eligibility requirements.

Prioritize Maintaining Valid Immigration Status. USCIS will closely scrutinize applicants’ immigration histories. The Memorandum signals a focus on reducing reliance on pending applications as a basis for remaining and working in the United States—even where processing backlogs, caused by circumstances outside applicants' control, have contributed to extended wait times.

Status violations, unauthorized employment, gaps in authorized stay, and failures to depart the United States are all factors that could lead to denial of an adjustment of status application. To the extent possible, applicants should maintain valid nonimmigrant status while their adjustment application is pending. A pending application alone will not be treated the same as maintaining lawful status.

USCIS may issue additional guidance addressing specific adjustment categories in the coming weeks and months. We anticipate that follow-up guidance will attempt to strike a more balanced approach—walking back some of the Memorandum’s intentionally broad language while still moving toward more restrictive adjudication standards. Any such guidance is likely to be framed as a “reasonable compromise,” even if it results in standards that push beyond what existing law strictly requires.

Alexis Eberlein (Case Western Reserve University School of Law, J.D. expected 2028) contributed to this article. Alexis is a Thompson Hine summer associate; she is not admitted to the practice of law.)

This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

This document may be considered attorney advertising in some jurisdictions.

https://admin.thompsonhine.com/wp-content/uploads/2026/05/Green-Card-Processing-Inside-the-U.S.-Just-Got-Harder.pdf

Green Card Processing Inside the U.S. Just Got Harder: USCIS Narrows Path for Adjustment Status

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