USCIS Policy Shift on Adjustment of Status Raises Questions for Employers
U.S. Citizenship and Immigration Services (USCIS) issued a new policy memorandum on May 21, 2026 addressing the adjudication of applications for adjustment of status (I-485).
At a high level, the memo reiterates that adjustment of status is a discretionary benefit and emphasizes that it should be treated as an “extraordinary” form of relief granted on a case-by-case basis. The memo instructs adjudicators to assess each case under a totality‑of‑the‑circumstances framework, weigh all favorable and adverse factors, and approve only where the applicant’s equities justify a favorable exercise of discretion. While we are aware of news reports claiming that the memo will have significant and far-reaching effects, we believe that at this time, there is significant uncertainty regarding how this policy will be implemented. The memo does not clearly define operational guidance to adjudicators for specific case scenarios. In particular:
It is unclear how broadly USCIS officers will apply this “discretionary” framework in routine employment-based adjustment cases.
The memo does not explicitly address how it will apply to individuals in H-1B or L-1 status (dual-intent categories) which have historically supported adjustment of status filings. The memo “reminds its officers that applying for adjustment of status is not inconsistent with simultaneously maintaining nonimmigrant status in a category with dual intent.” However, it also states that “maintaining lawful status in a dual intent nonimmigrant category is not sufficient, on its own, to warrant a favorable exercise of discretion.”
It is unclear how, or if, this policy memo will apply to immediate relative family-based adjustment cases.
It remains uncertain whether the policy will meaningfully change adjudication standards or whether approvals will continue under existing practices with heightened discretionary review.
Given these uncertainties, we are not recommending any immediate changes to filing strategy at this time, although such changes may be recommended on a case-by-case basis where specific facts warrant it. We will be actively monitoring developments, stakeholder guidance, and early adjudication trends. We will provide further updates as soon as additional guidance becomes available or as we gain insight into how USCIS is implementing this policy.