Back to Resources

USCIS Issues New Policy Memo on Adjustment of Status: What Employers and Foreign Nationals Need to Know

The Issue

On May 22, 2025, USCIS released Policy Memorandum PM-602-0199, directing immigration officers to treat adjustment of status as an “extraordinary discretionary relief” , a significant departure from longstanding agency practice.

The memo frames adjustment of status as a privilege rather than a routine pathway, stating that it is “a matter of discretion and administrative grace not designed to supersede the regular consular processing of immigrant visa.” It further implies that most noncitizens admitted on nonimmigrant visas or through parole should leave the U.S. and obtain their immigrant visa through a consulate abroad, arguing this was Congress’s original intent under the Immigration and Nationality Act (INA).

The memo specifically states: “Congress, in establishing the nonimmigrant admission and parole processes, made it clear that aliens are expected to depart the United States when the purpose of their admission or parole has been accomplished. Generally, when a nonimmigrant or parolee fails to depart as required and instead seeks adjustment of status, it contravenes these Congressional expectations…”

When Does the Policy Take Effect?

Apparently, immediately. However, USCIS has provided no clarity on the specific standards officers will use to implement the policy.

What Is Adjustment of Status?

Adjustment of status is the final stage of the green card process. It allows individuals already inside the United States to change from temporary to permanent resident status through an application to USCIS. In the employment context, applicants typically must hold a valid visa status at the time of filing.

Historically, applicants have not been required to maintain an underlying visa status once an adjustment application is filed. They are also eligible for temporary work and travel authorization based on a pending application.

What Is Consular Processing?

Consular processing is an alternative path to permanent residence conducted through a U.S. consulate or embassy abroad. Applicants must attend an in-person interview but do not need to remain outside the U.S. while the application is pending. Unlike adjustment of status applicants, those in consular processing do not receive work authorization, travel authorization, or lawful presence while their application is under review.

What Does the Law Say?

INA §245(a), codified at 8 U.S.C. §1255(a), states only that any alien who has been lawfully admitted for temporary resident status “may apply for adjustment of status.” While adjustment of status is a discretionary benefit, it has never been interpreted as an “extraordinary” form of relief. That characterization appears nowhere in the INA, and would surely have been made explicit by Congress if that were its intent. USCIS’s reading of the word “may” to mean “extraordinary” is not only illogical , it contradicts the plain meaning of the statute and decades of established agency policy.

 

Who Is Impacted and What We Recommend

Based on the memo, USCIS will likely continue approving applicants in dual-intent visa statuses — namely H-1B, H-4, L-1A, L-1B, L-2, O-1, and O-3. Applicants in other visa categories may face significantly heightened scrutiny. It remains unclear how much of the memo is directed at employment-based applications versus family-based applications.

Pending Adjustment of Status Applications

  • H-1B, L-1, and O-1 holders: No immediate action is required. Employers should continue maintaining these visa statuses, where possible, while adjustment applications are pending.
  • All other visa categories (E-3, F-1, H-1B1, J-1, P-1, R-1, TN, and others): Do not withdraw pending adjustment applications. However, it may be prudent to begin a concurrent consular processing application.
  • All applicants: Expect the possibility of Requests for Evidence (RFEs) and adjustment of status interviews at USCIS field offices. We cannot predict the content of potential RFEs or interview questions at this time and will continue monitoring developments closely.

Future Applications

  • H-1B, L-1, and O-1 holders: No immediate action is required. Employers should continue maintaining these statuses while adjustment applications are pending.
  • All other visa categories: Prepare for flexibility. Individual circumstances will need to be evaluated, including:
    • Whether the applicant is subject to the 75-country immigrant visa processing pause
    • The applicant’s ability to maintain valid status inside the U.S.
    • The category of green card being sought
    • Additional factors such as U.S.-based family ties, degrees earned in the U.S., salary, and employment role

Will This Policy Be Challenged in Court?

Almost certainly. The policy appears to conflict with the statute as written, and the vague standards for officer review raise serious due process concerns under the Constitution. Meltzer Hellrung will continue to monitor litigation developments and update clients accordingly.