- USCIS has reclassified adjustment of status as extraordinary form of relief, requiring consular processing abroad.
- New H-1B regulations prioritize higher wage levels and impose a one hundred thousand dollar supplemental fee.
- Proposed rules seek to increase naturalization fees by eighty percent, potentially raising costs to thirteen hundred dollars.
(UNITED STATES) — The Department of Homeland Security has implemented a series of immigration policy changes since May 2026 that restrict in-country green card processing, restructure H-1B visa allocation, impose new E-2 requirements, and propose steep naturalization fee increases. The policies carry particular weight for South Korean nationals and U.S. employers who rely on employment-based immigration pathways.
On May 22, 2026, USCIS issued policy memorandum PM-602-0199, reclassifying Adjustment of Status under INA § 245 as an “extraordinary form of relief” rather than a standard administrative benefit. The memorandum directs that most temporary visa holders seeking permanent residency must return to their home countries for consular processing, with exceptions limited to extraordinary circumstances.
USCIS Spokesperson Zach Kahler stated that the policy “allows our immigration system to function as the law intended instead of incentivizing loopholes.” The memorandum reverses decades of practice under which H-1B holders, students, and other nonimmigrants could transition to lawful permanent resident status without departing the United States.
Consular processing requires applicants to schedule immigrant visa interviews at U.S. embassies or consulates abroad. Processing times vary by location and can extend the permanent residency timeline by several months. Applicants must also obtain medical examinations from Department of State-approved panel physicians, and any security clearance delays can further extend the timeline.
For South Korean nationals, who represent one of the largest groups of employment-based immigration applicants, the policy requires departure from U.S.-based employment during green card processing. Unlike Adjustment of Status, which allows applicants to maintain employment authorization under INA § 245(k) while the case is pending, consular processing offers no equivalent continuity of work authorization.
The restriction may face legal challenges. INA § 245(a) provides that eligible inspected and admitted aliens “may” adjust status, language courts have historically interpreted as conferring discretion on the agency. Whether USCIS can categorically restrict AOS through policy memorandum rather than formal rulemaking under the Administrative Procedure Act remains an open legal question that federal courts may eventually address.
The AOS restriction intersects with a parallel restructuring of the H-1B program. The administration finalized the transition from a random lottery to a wage-based selection system under INA § 214(g). The new framework prioritizes petitions at Wage Levels III and IV of the Department of Labor’s prevailing wage structure, significantly reducing selection probability for entry-level Wage Level I positions.
The administration has also imposed a $100,000 supplemental fee on certain new H-1B petitions, targeting companies bringing in workers from abroad rather than sponsoring existing employees already in the United States. The fee applies to new employment petitions, not to extensions or amendments of existing H-1B status.
South Korean technology companies with U.S. operations face compounding costs. The wage-based selection system limits access to entry-level talent, and the supplemental fee raises per-petition expenses substantially for new hires. Companies that previously built U.S. teams through H-1B sponsorship must evaluate whether the revised cost structure supports continued recruitment of foreign workers at junior levels.
⚠️ Policy Alert: Adjustment of Status Restriction
USCIS Policy Memorandum PM-602-0199 (May 22, 2026) reclassifies AOS as “extraordinary relief.” Most visa holders must now pursue consular processing abroad. Consult an immigration attorney before filing Form I-485 to determine whether your case qualifies for an exception.
E-2 Treaty Investor visa requirements have also changed. USCIS guidance dated June 17, 2026, implements Executive Order 14286, issued April 28, 2025. The guidance requires E-2 applicants seeking positions involving commercial motor vehicle operation to demonstrate English language proficiency as part of the application process.
The Department of State has increased vetting for these applicants. USCIS will accept only E-2 visas issued after June 15, 2026 as proof of proficiency screening. Visas issued before that date do not satisfy the new requirement, meaning current E-2 holders in affected positions may need to obtain new documentation or seek alternative screening.
South Korea maintains an E-2 treaty with the United States, and Korean nationals have been significant users of this visa category. The English proficiency requirement targets commercial motor vehicle operations specifically, narrowing the scope but affecting a defined segment of E-2 holders and applicants.
📅 Deadline: E-2 Visa Proficiency Requirement
Only E-2 visas issued after June 15, 2026 are accepted as proof of English proficiency screening. Current holders in commercial motor vehicle positions should verify their documentation status immediately.
Naturalization fees face proposed increases under a notice of proposed rulemaking published by DHS on June 23, 2026. The N-400 Application for Naturalization filing fee would rise from $760 to $1,330 for paper filings or $1,280 for online submissions, an increase of approximately 80 percent.
The proposed rule also eliminates reduced-fee options and fee waivers for naturalization-related forms. Under current regulations at 8 C.F.R. § 103.7, applicants meeting income thresholds can qualify for reduced fees or full waivers. Removal of these accommodations would affect low-income applicants pursuing citizenship through naturalization under INA § 336.
Because the fee changes are in proposed rulemaking, they are not yet effective. The Administrative Procedure Act requires a public comment period, and the proposed figures could change before finalization. Applicants who are eligible to file N-400 applications before the rule is finalized may benefit from locking in current fee structures.
⚠️ Proposed Fee Increase: N-400 Naturalization
DHS published proposed rulemaking on June 23, 2026. N-400 fees would increase from $760 to $1,330 (paper) or $1,280 (online). Reduced-fee options and waivers face elimination. Filing before finalization locks in current rates.
Enforcement actions have intensified alongside the policy changes. On June 26, 2026, DHS and ICE released statements referencing a Supreme Court ruling that the agency characterized as affirming its enforcement authority. Acting Assistant Secretary Lauren Bis stated that ICE operations that day resulted in arrests of individuals identified as public safety threats.
DHS reported that nearly 70 percent of current ICE arrests involve noncitizens charged or convicted of crimes. The administration has adopted a “zero releases” policy at the border and directed ICE to prioritize enforcement against individuals with criminal records. DHS has not publicly identified the specific Supreme Court case referenced in its June 26 statements, and no case citation accompanied the agency’s press release.
Two additional enforcement measures affect employers. Executive Order 14411, issued June 3, 2026, establishes a 50 percent minimum penalty floor for customs violations. The administration has also strengthened E-Verify requirements for discretionary work authorizations, increasing compliance obligations for businesses that sponsor foreign workers.
The combined effect of these policies represents a structural shift in employment-based immigration, Adjustment of Status procedures, and naturalization access. South Korean nationals rank among the top users of both E-2 and H-1B visas, and the restrictions create bottlenecks at multiple stages of the immigration pipeline. Employers face higher costs, stricter compliance requirements, and reduced flexibility in recruiting foreign talent.
Applicants currently in any stage of the immigration process should consult with a qualified immigration attorney to assess how these changes affect their specific circumstances. Policy memoranda and proposed rules can be subject to litigation, and implementation timelines may shift in response to court action or administrative review. Each case turns on its individual facts, and the general information provided here cannot substitute for case-specific legal counsel.
⚖️ Legal Disclaimer: This article provides general information about immigration law and is not legal advice. Immigration cases are highly fact-specific, and laws vary by jurisdiction. Consult a qualified immigration attorney for advice about your specific situation.
