New DHS Green Card Policy 2026: USCIS Raises Bar for Adjustment of Status Applicants

On May 21, 2026, U.S. Citizenship and Immigration Services (USCIS) released Policy Memorandum PM-602-0199, signaling a significant shift in how officers evaluate Adjustment of Status (AOS) applications. The memo characterizes AOS—the process allowing eligible noncitizens already in the U.S. to apply for a green card without leaving the country—as an 'extraordinary' discretionary benefit and an 'act of administrative grace,' raising the adjudicative bar for applicants. Under the new guidance, officers are instructed to weigh the totality of circumstances rather than simply confirming statutory eligibility. The absence of negative factors is no longer sufficient; some applicants may need to demonstrate 'unusual or even outstanding equities.' Adverse factors such as overstays, unauthorized employment, fraud, and immigration violations will be weighed heavily against applicants. For EB-3 employment-based applicants, this development is particularly significant. The majority of employment-based green cards are issued through the AOS process rather than consular processing. While dual-intent visa holders such as H-1B and L-1 workers are in a relatively better position, the memo cautions that maintaining lawful status alone is not sufficient to guarantee a favorable discretionary outcome. Within days of the initial announcement, DHS issued clarifications stating that the memo does not represent a blanket policy change and that officers will continue making individualized, case-by-case determinations. This walkback followed immediate backlash from employers, foreign nationals, and immigration practitioners who interpreted the original press release as requiring most temporary visa holders to depart the U.S. before applying. EB-3 applicants and their employers should consult with immigration counsel to assess their current AOS filings and any pending applications. Applicants with prior status gaps, single-intent visa categories (TN, O, P, E), or any history of immigration violations face heightened risk under this framework and should take proactive steps to document positive equities such as family ties, good moral character, and economic contributions to the United States.