USCIS Adjustment of Status: What the New Policy Memo Means for Employers and Foreign Nationals

Note: Immigration policy in this area is changing rapidly. This article reflects publicly available information as of early June 2026 and is intended for general informational purposes only. It does not constitute legal advice. Individual circumstances vary. Please contact Sapon Immigration for guidance specific to your situation.

Overview 

On May 21, 2026, U.S. Citizenship and Immigration Services (USCIS) issued Policy Memorandum PM-602-0199, introducing new guidance on how the agency evaluates Form I-485 applications. Form I-485 is the application used to obtain lawful permanent residence, commonly known as a green card, from inside the United States. This process is formally known as Adjustment of Status (AOS). 

To be clear: the legal process for applying for a green card from inside the United States has not changed. Form I-485 is still available, USCIS is still accepting filings, and the eligibility requirements under the Immigration and Nationality Act remain the same. What this memo addresses is how USCIS officers may exercise their discretion when reviewing those applications. 

The memo instructs adjudicators to apply a “totality of the circumstances” review when evaluating I-485 cases, weighing both positive and negative factors before making a decision. This adds a layer of discretionary consideration to a process that has historically been more procedural for applicants who meet the statutory requirements. 

The May 22 Announcement and the Immediate Walk Back 

The memo became widely known on May 22, 2026, when USCIS issued a press release suggesting that most temporary visa holders seeking a green card would be required to apply from outside the United States. The language of the press release caused significant alarm among employers, universities, foreign nationals, and immigration advocacy organizations. 

Later that same day, USCIS issued clarifying communications walking back the most alarming interpretations. The agency confirmed that the policy was still being operationalized and that applicants demonstrating economic benefit or national interest would generally continue on their existing adjustment of status path. The underlying policy memorandum was not rescinded. 

Practitioner Note (Janie Sapon, Founder & CEO, Sapon Immigration): The walk back matters, but it should not be read as a full reversal. The memo is still active. What changed is the tone of the public messaging, not the underlying policy direction. We are advising clients to treat this as a real shift in how USCIS may exercise discretion and to prepare their documentation accordingly.

Late May Clarification: A Softer Signal 

This is an encouraging development that signals USCIS does not intend to apply the memo as a blanket barrier to domestic green card applications. Rather, the practical effect will depend significantly on how individual officers exercise their discretion case by case. 

Practitioner Note (Janie Sapon, Founder & CEO, Sapon Immigration): This is important context. A memo’s real-world impact often looks very different from what people imagine when it is first released. We are watching closely to see how USCIS actually applies this guidance in practice. That on-the-ground picture will be more telling than the memo text alone. We will keep our clients updated as we learn more.

How This May Affect Different Applicants 

Not everyone is equally affected by this guidance. The memo draws a meaningful distinction between visa categories and understanding where you or your employees fall is the first step in knowing how to respond. 

Dual-intent visa holders: Well-positioned 

The policy memorandum explicitly states that filing for adjustment of status is not inherently inconsistent with holding a dual-intent visa. Dual-intent visas legally permit the holder to maintain both temporary and immigrant intent at the same time. The most common examples in employment-based immigration are H-1B specialty occupation workers, L-1 intracompany transferees, and O-1 individuals of extraordinary ability. For employees in these categories, the memo creates less immediate disruption. 

Practitioner Note (Janie Sapon, Founder & CEO, Sapon Immigration): This is meaningful protection for employers in food manufacturing, processing, and other industries that rely on H-1B and L-1 workforce pipelines. The memo gives us useful language to draw on when building an AOS case for these employees. That said, a stronger standing does not mean automatic approval. Positive discretionary factors still need to be documented and presented clearly in every filing.

Single-intent visa holders: More preparation needed 

Applicants who entered the United States on single-intent temporary visas will want to be especially proactive about building a strong record when filing for adjustment of status. Under the totality of the circumstances framework, an officer may consider the timeline between entry and I-485 filing as one of many factors. This is not a bar to applying; it is a signal to prepare thoroughly. This category includes: 

• F-1 students 

• B-1/B-2 tourist and business visitors 

• J-1 exchange visitors 

• Immediate relatives of U.S. citizens who entered on a visitor or other temporary visa before pursuing a green card 

The key is not to be discouraged from applying. It is to apply well-prepared. 

Practitioner Note (Janie Sapon, Founder & CEO, Sapon Immigration): Even for immediate relatives of U.S. citizens, one of the most straightforward green card categories, this guidance is a reminder that every case benefits from thoughtful preparation. We are telling clients: do not let this discourage you from moving forward. Keep your case active, document your positive ties to the United States, and work with counsel to prepare for the kinds of questions that may come up at your AOS interview. A well-built record makes a real difference.

What Employers Should Do Right Now 

For companies sponsoring employees through employment-based immigration, the message is straightforward: stay the course, stay informed, and be proactive. Here is what that looks like in practice: 

• Keep filing. USCIS is still accepting I-485 applications. Pending cases have not been retroactively denied or rejected. This is not the time to pause sponsorship pipelines. 

• Know your visa categories. H-1B, L-1, and O-1 employees are well-positioned under this memo. If your workforce includes employees on other visa types, review their situations with counsel. 

• Invest in stronger documentation. Future I-485 packages should include robust evidence of positive factors: consistent tax and compliance history, economic contributions, professional credentials, and community and employer ties. 

• Pause international travel for affected employees. Employees with pending I-485 applications should consult immigration counsel before any international travel, even when holding an Advance Parole. 

• Do not withdraw pending applications without counsel. Withdrawing an I-485 terminates the process entirely. With legal challenges to this policy actively being prepared, withdrawing prematurely could unnecessarily close off a viable path to permanent residence. 

Practitioner Note (Janie Sapon, Founder & CEO, Sapon Immigration): To employers: the worst outcome here is a reactive decision made out of panic. If your employee has a pending I-485, keep it pending. If you have cases coming up for filing, work with counsel to build the strongest possible record before you file. The discretionary bar has shifted, but it has not been closed. We are still filing, still winning approvals, and still protecting our clients’ workforces.

What Foreign Nationals Should Do Right Now 

If you have a pending I-485 or are planning to file one, here is our practical guidance: 

• Do not withdraw your pending I-485. Keep your application active while the legal landscape continues to develop. 

• Do not travel internationally without consulting counsel first. Even with Advance Parole, international travel carries elevated risk for applicants with pending cases in the current environment. 

• Build your positive equity record. Gather documentation of your employment history, tax filings, community ties, and any other evidence that reflects your contributions and stability in the United States. 

• Prepare for your AOS interview. Officers may ask harder questions under this discretionary framework. Working with an attorney to prepare thoughtful, well-supported answers is more important than ever. 

• Stay informed. This policy is still evolving. Legal challenges are underway, and how USCIS applies this memo in practice will become clearer over the coming months. Sapon Immigration will keep you updated. 

Practitioner Note (Janie Sapon, Founder & CEO, Sapon Immigration): You are not alone in navigating this. The process is the same. What has shifted is the importance of going in prepared. If you have questions about how this applies to your specific situation, please reach out. That is exactly what we are here for.

Where Things Stand and What to Watch 

The statutory framework governing adjustment of status, Section 245 of the Immigration and Nationality Act, has not been amended by Congress. PM-602-0199 is an agency-level policy directive. Legal advocacy organizations, including the American Immigration Council, have signaled active preparation of federal legal challenges on the grounds that the memo administratively narrows a congressionally established process. 

The White House and the Department of Homeland Security have issued statements confirming that highly skilled professionals on dual-intent visas and applicants demonstrating clear economic value are not the primary focus of this policy. The stated aim is to address cases where short-term visitors entered the United States with the intent of bypassing consular processing. 

It is also worth noting that a policy memo’s practical application often looks quite different from what initial interpretations suggest. How USCIS officers actually implement this guidance, what factors they weigh most heavily, and how adjudication patterns develop over time will be just as important as the memo text itself. Sapon Immigration is monitoring those developments closely and will update clients as the picture becomes clearer. 

Practitioner Note (Janie Sapon, Founder & CEO, Sapon Immigration): This is agency policy, not a law. Agency policies can be challenged, revised, and reversed. We are watching the litigation landscape closely and will update clients as federal courts begin weighing in. In the meantime, the best protection is a well-documented case file and a legal team that understands how discretionary adjudication works in practice.

Every immigration case is shaped by individual factors: visa type, filing history, travel record, employer sponsorship structure, and more. If you have employees with pending I-485 applications, are planning new green card sponsorships, or simply want to understand how this policy applies to your situation, our team is ready to help. 

Contact Sapon Immigration to discuss your specific situation.

Email: info@saponlaw.com

Phone: +1 (502) 459-9191 

Sources Referenced 

1. USCIS Policy Memorandum PM-602-0199 (May 21, 2026)

2. USCIS News Release: “USCIS Will Grant Adjustment of Status Only in Extraordinary Circumstances” (May 22, 2026)

3. American Immigration Council: “Green Card News: USCIS Memo” (2026)

4. American Immigration Lawyers Association (AILA): Practice Pointer on New AOS Policy (May 2026)

5. BBC News: “Most people seeking green cards must now apply from outside US” (May 22, 2026)

This article is for informational purposes only and does not constitute legal advice. It is based on publicly available sources cited above. Practitioner notes reflect the professional opinion of Janie Sapon, Founder & CEO of Sapon Immigration, and are not a substitute for individualized legal counsel. Immigration law is subject to frequent change. Consult a qualified immigration attorney for advice tailored to your circumstances.