USCIS policy update

USCIS Reframes Adjustment of Status as Discretionary Extraordinary Relief

USCIS issues policy memo PM-602-0199 recharacterizing adjustment of status as discretionary administrative grace, not automatic. Practitioners must now expect heightened scrutiny and stronger discretionary showings in AOS cases.

USCIS has issued a policy memorandum (PM-602-0199) reminding officers and the public that adjustment of status under section 245 of the INA is a matter of discretion and administrative grace, not designed to supersede the regular consular processing of immigrant visas. The memo, released May 21, 2026, signals a material shift in how the agency will adjudicate green card applications filed from within the United States—one that will reshape practitioner strategy and client expectations.

What changed

The memo characterizes adjustment of status as discretionary and administrative grace, and USCIS reaffirms its intention to apply the statute consistently with this understanding. Officers are directed to consider all relevant factors and information on a case-by-case basis when determining whether an alien warrants this extraordinary form of relief.

The memo reminds immigration officers and the public that adjustment of status is a matter of discretion and administrative grace, consistent with longstanding immigration law and immigration court decisions. However, the memo appears to encourage USCIS officers to exercise their discretion more aggressively in denying adjustment of status applications, and applicants now bear the burden of showing why USCIS should exercise favorable discretion.

The memo reminded officers that applying for adjustment of status is not inconsistent with simultaneously maintaining nonimmigrant status in a category with dual intent, though maintaining lawful status in a dual intent nonimmigrant category is not sufficient, on its own, to warrant a favorable exercise of discretion.

Adjudicators must weigh all positive and negative factors, including family ties, immigration status and history, the applicant’s moral character, and any other relevant factor that bears on determining whether the alien warrants a favorable exercise of discretion. USCIS has made clear that applicants must affirmatively demonstrate positive equities, meaning you need to show why approval is warranted, not just that there is nothing working against you.

Why it matters

Practitioners must recalibrate client expectations and case strategy immediately. The policy change is expected to have its greatest impact on certain family-based applicants, including some who overstayed visas, violated the terms of admission, or entered illegally and received parole. Applicants who seek adjustment of status after violating their status or remaining in the U.S. instead of departing may face adverse discretionary findings, particularly when consular processing was available, and individuals may need to demonstrate unusual or outstanding favorable factors to overcome these concerns.

The memo does not outright prohibit adjustment of status—new I-485 applications are still permitted to be filed with the agency, and the guidance does not direct the agency to stop accepting or receiving new I-485 filings. But the memo reflects an intent to apply heightened discretionary scrutiny in AOS cases, which is likely to have real-world implications. The most likely near-term consequence is an uptick in Requests for Evidence (RFEs) and Notices of Intent to Deny (NOIDs) as officers document their discretionary analysis more thoroughly, which could slow processing timelines and require more detailed responses to agency inquiries.

While USCIS has broad discretion in adjustment decisions, courts have held that such discretion is not unlimited and may be reviewed for abuse of discretion, and existing legal precedent does not clearly support treating the mere act of seeking adjustment of status as a negative factor weighing against an applicant. If denial rates rise substantially or applications are denied absent meaningful adverse factors, litigation challenging those decisions is likely to follow.

Way forward

  • Reassess your client’s route. For clients abroad or able to depart, evaluate whether consular processing (immigrant visa, DS-260) may be faster or more certain than AOS. For dual-intent H-1B and L-1 workers with clean histories, AOS may still be viable—but do not rely on status alone.

  • Build an affirmative discretionary case now. Document positive equities (family ties, humanitarian factors, economic benefit to the U.S., community ties, clean immigration history, moral character). The absence of negative factors is no longer sufficient.

  • Address negative factors head-on. If your client has overstayed, violated admission conditions, engaged in unauthorized work, or is out of status, disclose these in the AOS application and explain them forthrightly. RFEs will demand it; anticipate them.

  • Monitor implementation. USCIS’s implementation of the memo remains unpredictable, and it is unclear how aggressively USCIS officers will implement the memo’s guidance. File strong cases now, track approval and denial patterns, and be ready to challenge abuse of discretion if warranted.

Disclaimer

This article is provided by an immigration software company, not a law firm, and does not constitute legal advice. Always consult a licensed immigration attorney before filing an adjustment of status application or making strategy decisions. USCIS policy can change without notice, and the real-world application of this memo may differ from its text. Verify the current state of the law and USCIS adjudicative practice against the official policy memo and the USCIS newsroom announcement before advising a client.

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