USCIS issued a significant policy announcement on May 22, 2026 (Policy Memorandum PM‑602‑0199), stating that the agency will now grant adjustment of status (AOS) inside the United States only in “extraordinary circumstances.” USCIS emphasized that, under its interpretation of longstanding immigration law, most applicants are expected to depart the United States and complete immigrant visa processing at a U.S. consulate abroad.

Importantly, this does not mean that all applicants must now pursue consular processing. Eligibility rules have not changed. Applicants who qualify for adjustment of status — including those in dual‑intent categories (e.g., H‑1B, L‑1) — may still file AOS applications with USCIS. The memo directs officers to evaluate whether the circumstances of a particular case warrant adjudication inside the United States or whether consular processing is more appropriate.

Applicants in non-dual‑intent categories (F‑1, J‑1, B‑2, etc.) may face heightened scrutiny regarding maintenance of status and intent. This represents a potential shift in how employment‑based, family‑based, and other permanent residence cases may be processed going forward.

Key Points from the USCIS Announcement

1. Adjustment of status is now framed as “extraordinary” relief, not the default path.

USCIS states that AOS was never intended to replace consular processing and should be granted only when an applicant demonstrates extraordinary circumstances. USCIS has not defined this term, and further guidance is expected.

2. USCIS directs officers to consider consular processing as the ordinary path.

The agency asserts that congressional intent favors immigrant visa processing abroad. This applies even to applicants who historically would have had adjusted status in the U.S.

3. USCIS claims consistency with longstanding law.

The memo cites decades of case law describing AOS as discretionary and “extraordinary.” It does not change statutory eligibility or regulatory criteria.

4. Policy rationale: resource allocation and overstay prevention.

USCIS states that this shift will:

• Reduce incentives for overstays
• Shift workload to U.S. consulates
• Free USCIS resources for other priorities

5. Totality‑of‑the‑Circumstances Discretionary Analysis

Officers must weigh all positive and negative factors, including:

• Immigration history and maintenance of status
• Family ties
• Employment and community contributions
• Moral character
• Any other relevant equities

Applicants must demonstrate that granting AOS is in the best interest of the United States.

Practical Implications for Employers and Foreign Nationals

Employment‑Based Cases

• Applicants who would normally file I‑485s in the U.S. may now be directed to consular processing, even if maintaining lawful nonimmigrant status.
• This may affect work authorization timing, travel, and continuity of employment.
• Dual‑intent status helps but is not sufficient on its own to guarantee favorable discretion.
• Pending and soon‑to‑be‑filed AOS cases should be monitored closely for policy updates.

Family‑Based Cases

Applicants who previously relied on domestic adjustment may now be required to depart the U.S. for consular processing.

Uncertainty Around “Extraordinary Circumstances”

Until USCIS provides examples or definitions, adjudications may vary significantly between officers and field offices.

Increased Importance of Consular Strategy

Employers and individuals should anticipate:

• Longer overall processing timelines
• Potential consular backlogs
• Additional planning for international travel and visa appointments

Cozen O’Connor Analysis and Recommended Actions

• Review pending and planned I‑485 filings to assess whether consular processing may be required.
• Evaluate travel and work authorization implications, especially for applicants relying on AOS‑based EAD/AP. Until more information is released, applicants should reconsider non‑essential international travel.
• Maintain and extend nonimmigrant status until permanent residence is granted.
• Consider including evidence of positive discretionary factors with AOS filings.
• Monitor for further USCIS guidance, including any category‑specific instructions.
• Be aware that litigation challenging the memo is possible — and likely.