USCIS Memorandum May 2026: Adjustment of Status Blocked, EB-3 Applicants May Face Consular Processing

On May 21, 2026, USCIS issued a sweeping policy memorandum that fundamentally reframes Adjustment of Status (AOS) as an extraordinary discretionary act rather than a standard procedural right. The memo instructs USCIS officers to weigh individualized positive and negative factors before approving any I-485 application, signaling a significant departure from longstanding practice that has allowed over 740,000 applicants to gain LPR status through AOS in FY2025 alone. For EB-3 applicants and other employment-based green card seekers, the implications are particularly severe. Many have waited years—sometimes over a decade—in the U.S. on H-1B or L-1 status while their priority dates become current. Under the new policy, even those with approved I-140 petitions may be denied the ability to adjust status domestically and instead be directed to apply via their home country's U.S. consulate, where interview backlogs are lengthy and denials are nearly unreviewable under the doctrine of consular non-reviewability. Employers are also significantly affected. Companies that have invested substantial resources in the PERM labor certification and I-140 approval process now face uncertainty over whether their sponsored employees can complete the green card process without leaving the U.S. A departure could disrupt business operations, break supply chains, and expose employees to risks from new proclamations or travel restrictions enacted while they are abroad. A USCIS spokesperson indicated on May 22 that applicants who provide 'economic benefit or are in the national interest' may continue on their current AOS path, while others could be redirected to consular processing. However, no formal guidance has been issued defining those terms, leaving employers and applicants in a state of uncertainty. Immigration attorneys advise that affected individuals should consult counsel immediately, avoid unnecessary international travel, and monitor USCIS updates closely. Employers should audit their sponsored employees' cases to assess exposure and prepare contingency plans in the event that AOS applications are denied or redirected to consular processing.