CanAm warns USCIS memo could tighten EB-5 adjustment reviews

By AI, Created 6:16 PM UTC, May 27, 2026, /AGP/ – CanAm Enterprises says a May 21 USCIS policy memo could make Adjustment of Status filings harder to predict for EB-5 investors, even though EB-5 law itself has not changed. The company says investors should expect more scrutiny, more evidence requests, and possible litigation as USCIS’s new guidance takes shape.

Why it matters: - USCIS’s new policy memo could affect how immigration officers review Form I-485 applications filed inside the United States. - EB-5 investors may face more discretionary scrutiny, even though the underlying EB-5 statute and eligibility rules have not changed. - The update matters because many investors depend on Adjustment of Status to remain in the U.S. while seeking permanent residency.

What happened: - USCIS issued policy memorandum PM-602-0199 on May 21, 2026. - The memo describes Adjustment of Status under INA §245 as a discretionary benefit and calls it an “extraordinary” form of relief rather than a routine path to permanent residence. - USCIS said foreign nationals temporarily in the U.S. who want permanent residence should generally expect consular processing abroad to become the normal route, rather than Adjustment of Status in the U.S. - CanAm Enterprises said the memorandum is not specific to the EB-5 program.

The details: - The EB-5 Reform and Integrity Act of 2022 expressly contemplated concurrent filing and Adjustment of Status for eligible EB-5 investors. - USCIS has not announced any formal suspension or termination of Adjustment of Status processing for EB-5 applicants. - USCIS also said applicants showing an “economic benefit” or serving the “national interest” may still qualify for Adjustment of Status under the broader discretionary framework. - Many immigration attorneys believe that distinction may matter for EB-5 investors because EB-5 is an employment-based immigrant category. - Many attorneys also view EB-5 investors who maintained lawful status as being in a stronger position than other applicant groups. - USCIS may focus more closely on cases involving immigrant intent concerns, status violations, unauthorized employment, overstays, failure to maintain lawful status, and some parole-based adjustment strategies. - The memorandum does not specifically address pending I-485 applications filed before May 21, 2026. - USCIS has not published implementation guidance explaining how an “economic benefit” or “national interest” standard will work in practice. - It remains unclear whether EB-5 investors will be expressly recognized under that framework or whether outcomes will vary by officer and case facts. - USCIS may issue future guidance affecting specific adjustment categories or applicant groups, including EB-5 cases. - Legal challenges to the memorandum are widely expected, and CanAm said litigation challenging aspects of the new policy within EB-5 could be filed in the coming weeks.

Between the lines: - The memo does not change the EB-5 investment program or the validity of approved or pending EB-5 petitions. - What is changing is the discretionary environment around some I-485 adjudications. - CanAm said investors should not make abrupt moves, including withdrawing a pending I-485, leaving the U.S., or changing nonimmigrant status or work authorization, without legal guidance. - CanAm also said investors should preserve proof of lawful admission, lawful status, employment authorization compliance, tax compliance, and complete EB-5 investment and job-creation records. - The company said applicants should be prepared for more Requests for Evidence, Notices of Intent to Deny, and broader discretionary review.

What’s next: - CanAm said it will keep monitoring USCIS guidance and litigation developments. - Investors with pending or planned I-485 filings are being advised to seek case-specific legal advice as the policy picture evolves. - Additional USCIS guidance could clarify whether EB-5 investors are treated as a favored category under the new discretionary framework.

The bottom line: - EB-5 Adjustment of Status is still available, but USCIS’s new memo may make approval timing and outcomes less predictable for investors filing inside the U.S.