On May 21, 2026, US Citizenship and Immigration Services (USCIS) issued policy memo PM-602-0199. The full title is long, but the key phrase is “Adjustment of Status is a Matter of Discretion and Administrative Grace.” USCIS announced the change on May 22, 2026. This article walks through what the new USCIS adjustment of status policy says, who it affects, and what remains unknown.
The memo doesn't change who is eligible for a green card — it changes how officers are told to use their discretion when reviewing applications. That distinction matters, and it's the source of most of the uncertainty in the early reads of the memo.
General advice disclaimer: This article is for general information only and is not legal advice. Immigration law is complex and each case is different. For advice on your situation, talk to a US immigration attorney.
What the new USCIS adjustment of status policy actually says
The memo applies to applications for adjustment of status (AOS), which are filed under Section 245 of the Immigration and Nationality Act (INA § 245). AOS is how you apply for a green card from inside the US, using Form I-485, without leaving the country for a consular interview.
Per the USCIS news release, most people seeking adjustment of status must now do so through consular processing with the Department of State, outside the country.
The memo cites two specific legal authorities:
- Matter of Blas, a 1974 Board of Immigration Appeals decision establishing that adjustment of status is “extraordinary” relief rather than an entitlement.
- Patel v. Garland, 596 U.S. 328 (2022), a US Supreme Court decision affirming that AOS is discretionary.
USCIS Spokesman Zach Kahler said in the news release:
“We're returning to the original intent of the law. From now on, an alien who is in the U.S. temporarily and wants a Green Card must return to their home country to apply, except in extraordinary circumstances.”
Who this USCIS adjustment of status policy affects
The memo applies to anyone physically present in the US who has filed, or plans to file, a Form I-485 application for permanent residence. Per Envoy Global, it applies across visa categories and across both family-based and employment-based green card pathways.
What is not yet clear is whether the new discretionary framework will be applied retroactively to cases already in the adjudication queue. Per Visa Verge,
“USCIS did not state how the memo applies to cases already pending.” If you have an application currently in the queue, this is the open question your attorney will be watching most closely.
Does this USCIS adjustment of status policy affect E-3 visa holders adjusting status?
The memo does not specifically mention the E-3 visa. It does not lay out how single-intent visa holders should be treated differently from dual-intent visa holders. It does not say AOS will be unavailable to E-3 holders. Per Visa Verge, “USCIS did not publish a fixed checklist,” and the memo itself notes that category-specific guidance may follow at a later date.
That said, two facts about the E-3 are relevant context, and one line in the memo deserves close attention.
First, the established context. The E-3 is a single-intent nonimmigrant visa. Unlike H-1B and L-1, which are dual-intent visas under US law, the E-3 has no statutory dual-intent provision. The Department of State Foreign Affairs Manual on E-3 visas confirms that E-3 applicants must show intent to depart the US at the end of their authorized stay. This has always been the case, and it has always made the path from E-3 to a green card more complex than the equivalent path from H-1B.
Second, the line worth watching. Among the negative factors the memo directs officers to weigh, one stands out for E-3 holders: applicants who chose AOS when consular processing was readily available abroad. For E-3 holders, consular processing in Australia or at a third-country US consulate is generally available.
A reasonable reading is that this factor would now weigh against AOS approval for E-3 holders more often than it would for, say, an H-1B holder whose home country has a less-accessible US consulate.
This is only our interpretation of the memo, not a statement of USCIS policy. The memo does not say “E-3 holders should be denied” — it says officers should weigh the totality of circumstances, and the consular-availability factor is just one of many. We have not seen reported denials of E-3 AOS applications attributed specifically to this memo. Anyone planning a status change from E-3 to permanent residence should speak with a qualified immigration attorney before drawing any firm conclusions.
Favorable and negative factors USCIS officers are directed to weigh
Factors that may support a grant of AOS:
- Long lawful residence in the US
- Family ties to a US citizen or green card holder
- Serious hardship to family members if the applicant must leave the US
- Consistent compliance with visa status
- A steady tax history
- A clean record
Factors that may weigh against a grant:
- Status violations
- Unauthorized employment
- Fraud or false testimony
- Failure to depart when a temporary stay ended
- Choosing AOS when consular processing was readily available abroad
The applicant carries the burden of demonstrating they merit a favorable exercise of discretion — even when every statutory eligibility requirement has been met.
What this USCIS adjustment of status policy does not change
The memo does not eliminate adjustment of status, and the legal eligibility requirements under INA § 245 are unchanged.
The rules for consular processing are also unchanged, and anyone who already holds a green card or US citizenship is unaffected. Visa issuance, renewals, and other nonimmigrant adjudications continue as before. This memo is specifically about how AOS applications are reviewed — not about who is eligible to apply.
What we do not know yet
Several important questions remain open as of publication.
- Whether USCIS will apply the new discretionary framework retroactively to applications already pending. Per Visa Verge, the agency has not stated this publicly.
- How USCIS will operationalize the “totality of the circumstances” test in practice. The memo does not publish a fixed checklist or scoring system, leaving significant discretion to individual officers.
- When, or if, USCIS will release category-specific guidance. The memo indicates such guidance may follow but does not commit to a timeline.
- Whether AOS denial rates will materially increase. The new stated policy may lead to more denials, or the change in framing may be reflected in unchanged adjudication outcomes. We will not know until enough decisions have been issued under the new framework to draw conclusions.
- Whether the policy will face legal challenges. Multiple immigration law firms have signaled they are reviewing the memo for potential challenge grounds, but no formal challenge has been filed at the time of publication.
Practical considerations for anyone affected
We are not giving individual advice here, because the right move depends on personal circumstances — current visa status, eligibility category, pending applications, family ties, and risk tolerance all matter. For specific guidance, see our list of immigration attorneys we trust.
For Australians on the E-3 visa, the change is a reason to ask questions rather than to panic. The path from E-3 to a green card has always been more complex than from H-1B. The memo doesn't change the statutory landscape, but it does signal that USCIS will exercise its discretion more aggressively. If you have been planning an AOS-based green card move from your E-3, this is the moment to ask your immigration attorney whether consular processing might now be the safer route.
For more on the E-3 visa, see our complete 2026 E-3 visa guide and our recent Q&A on E-3 revocations — both contain context that may be relevant here.
USCIS adjustment of status policy FAQs
PM-602-0199 is a policy memorandum issued by USCIS on May 21, 2026. It directs USCIS officers to treat adjustment of status (the process of applying for a green card from inside the US) as a discretionary and extraordinary form of relief rather than an entitlement, and to weigh a range of favorable and negative factors when adjudicating applications.
No. The memo does not change statutory eligibility requirements under INA § 245. It changes how USCIS officers are directed to exercise their discretion when reviewing applications. Applicants must now demonstrate they merit a favorable exercise of discretion, even when every legal requirement is met.
The memo applies to foreign nationals physically present in the United States who have filed, or plan to file, a Form I-485 application to adjust to permanent resident status. It applies across visa categories and across both family-based and employment-based green card pathways.
The memo does not specifically mention the E-3 visa. However, the E-3 is a single-intent nonimmigrant visa, which has always made the AOS path more complex than for dual-intent visa holders like H-1B. The memo flags “choosing AOS when consular processing was readily available” as a negative discretionary factor, and consular processing is generally available for E-3 holders in Australia. The practical effect will not be clear until USCIS publishes category-specific guidance or enough decisions are issued under the new framework. Anyone planning this path should consult an immigration attorney.
USCIS has not publicly stated whether the new discretionary framework will be applied to applications already filed and pending at the time of the policy change. The memo describes the policy going forward, but its retroactive application is genuinely unresolved at the time of publication. Anyone with a pending application should consult their immigration attorney for current guidance.
Favorable factors include long lawful residence, family ties to a US citizen or green card holder, hardship to relatives if the applicant must leave, consistent status compliance, a steady tax history, and a clean record. Negative factors include status violations, unauthorized employment, fraud or false testimony, failure to depart when a temporary stay ended, and choosing AOS when consular processing was readily available abroad.
No. The memo does not eliminate adjustment of status. It directs officers to treat AOS as discretionary and extraordinary relief rather than an entitlement, and to weigh a range of factors when adjudicating applications.
Adjustment of status is the process of applying for permanent residence (a green card) from inside the United States, using Form I-485. Consular processing is the process of applying for an immigrant visa at a US consulate or embassy abroad, then entering the US as a permanent resident. The new USCIS memo directs officers to treat consular processing as the standard pathway and adjustment of status as the extraordinary alternative.
As of publication, no formal legal challenge has been filed. Multiple immigration law firms have signaled they are reviewing the memo for potential challenge grounds, but no challenge has yet been formally filed.
As of publication, no formal legal challenge has been filed. Multiple immigration law firms have signaled they are reviewing the memo for potential challenge grounds, but no challenge has yet been formally filed
This article is current as of May 22, 2026. Immigration policy can change quickly. For the most current information, consult the USCIS website or a qualified US immigration attorney. We will update this article as new information becomes available.
