USCIS May 2026 Memorandum Alert: Adjustment of Status Faces Stricter Discretionary Review

On May 22, 2026, USCIS issued a Policy Memorandum formally recharacterizing adjustment of status (AOS) as a discretionary and 'extraordinary' form of relief — not an automatic entitlement once eligibility is established. The memo, titled 'Adjustment of Status is a Matter of Discretion and Administrative Grace,' instructs officers to evaluate each I-485 application using the totality of the circumstances rather than treating approval as routine after statutory requirements are met. For EB-3 applicants and other employment-based green card seekers, this shift has significant practical implications. Cases that were previously considered straightforward — particularly for H-1B and L-1 workers who maintained lawful status — may now receive deeper individualized scrutiny. Officers are directed to weigh both positive and negative factors, meaning a clean immigration record, consistent tax filings, and documented status compliance become more important than ever. Factors that may weigh against approval include prior overstays, unauthorized employment, failure to depart after a parole purpose was completed, or any history of fraud or misrepresentation with government agencies. Conversely, sustained lawful status, strong U.S. family ties to citizens or permanent residents, demonstrated hardship if forced to depart, and good moral character can support a favorable outcome. The memorandum notably clarifies that H-1B and L-1 dual-intent visa holders remain eligible to file for AOS — however, lawful status alone no longer guarantees approval. Employers should not assume that cases routinely approved in the past will continue to receive the same treatment under this new adjudicative standard. One procedurally significant change: when USCIS denies an I-485 on discretionary grounds, the denial notice must now specifically identify the positive factors considered, the adverse factors cited, and explain why the negatives outweighed the positives. This creates a clearer record for appeals, motions to reconsider, and future filings, offering applicants and attorneys a more transparent basis for challenging denials.