DHS Announces Sweeping Policy Shift On Adjustment Of Status—Key Implications For Employers

Introduction

On May 21, 2026, U.S. Citizenship and Immigration Services (USCIS) issued Policy Memorandum PM-602-0199, formally reaffirming that adjustment of status (AOS) under Section 245 of the Immigration and Nationality Act (INA) is a matter of "discretion and administrative grace"—an extraordinary form of relief not designed to supersede the regular consular visa process. The memorandum is effective immediately and applies to all pending and future AOS applications.

While styled as a reminder of longstanding policy, this memorandum signals a materially more restrictive approach to the adjudication of AOS applications (often referred to as “green card” applications) and carries significant practical consequences for employers with foreign national workforces. Employers who have relied on AOS as a routine pathway to permanent residence for sponsored employees should take immediate stock of how this guidance will affect their immigration programs and workforce planning.