USCIS Now Requires Foreign Nationals to Return Home for Green Card Applications: What Indian Students Need to Know

On May 21, 2026, the United States Citizenship and Immigration Services (USCIS) issued Policy Memorandum PM-602-0199, reversing more than 50 years of US immigration practice. Under the new directive, foreign nationals on temporary visas, including F-1 students, H-1B workers, tourists, and others, who want to apply for a Green Card must now leave the United States and apply through consular processing in their home country, except in "extraordinary circumstances" as determined case-by-case by USCIS officers. The USCIS press release characterized this starkly; the memo's operative text directs discretionary weighing on a case-by-case basis rather than a categorical departure requirement.

For Indian students and professionals in the US, this ruling is the most consequential shift in Green Card pathway rules in decades. If fully implemented, it eliminates Adjustment of Status (AOS) as the default pathway to permanent residency, the route that has allowed Indian professionals on H-1B and F-1 visas to complete their entire immigration journey inside the US without returning to India.

However, the policy is actively being challenged in federal court, and its implementation is in flux.

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What the Policy Says

Under the directive released on May 22, 2026, USCIS clarifies that Adjustment of Status (AOS) under INA §245 is an "extraordinary form of relief" rather than an automatic entitlement. Except in tightly defined "extraordinary circumstances," foreign nationals currently on temporary visas within the United States, including students, tourists, and temporary workers, must now depart the country and complete their permanent residency applications through the Department of State at a US consulate in their home country.

In plain language: If you are in the US on an F-1 student visa, an H-1B work visa, or any other temporary visa and want a Green Card, you can no longer simply file Form I-485 (Adjustment of Status) from inside the US. Under the new policy, the default is that you leave the US and apply at the nearest US consulate in India.

USCIS Spokesman Zach Kahler stated: "Nonimmigrants, like students, temporary workers, or people on tourist visas, come to the US for a short time and for a specific purpose. Our system is designed for them to leave when their visit is over. Their visit should not function as the first step in the Green Card process."

The policy was issued without advance public notice or a standard notice-and-comment rulemaking period, which immigration attorneys argue makes it legally vulnerable.

The Critical Legal Update: Federal Court Intervention

On June 5, 2026, the US District Court for the District of Rhode Island issued an order in Dorcas International Institute of Rhode Island, et al. v. United States Citizenship and Immigration Services, et al., vacating USCIS memoranda PM 602-0192, PM 602-0194, and PA 2025-26. The Court entered its final judgment on June 11, 2026. USCIS strongly disagrees with the Court's order but will follow its terms pending possible further judicial review.

After initially presenting the new policy as something that would affect most Green Card applications, USCIS has stated that it will be implemented on a case-by-case basis, implying that many immigrants will still be able to continue applying from inside the US.

The current legal status as of July 27, 2026: The policy is being litigated. The Rhode Island federal court vacated related memoranda in June 2026. The Trump administration is expected to appeal. The policy's full implementation remains on hold or in a grey zone while further judicial review proceeds. The core PM-602-0199 memorandum on Adjustment of Status has not been formally vacated as of this writing.

What this means practically: Do not assume the policy is dead. Do not assume it is fully in force either. This overall uncertainty is likely to discourage applicants, employers, and families from pursuing adjustment of status or taking risks with immigration filings.

What "Extraordinary Circumstances" Means

USCIS has not published a specific list of qualifying circumstances. USCIS officers are directed to consider all relevant factors on a case-by-case basis. Rather than listing specific "extraordinary circumstances," the memo points officers to existing USCIS policy and directs them to weigh all relevant factors, including whether the applicant provides an economic benefit or national interest, their medical condition, family ties to US citizens, and the length of lawful presence in the US.

In an emailed statement, the agency said people who provide an "economic benefit" or "national interest" could likely stay in the US while others would have to go abroad to apply.

This is deliberately ambiguous. It gives USCIS officers wide discretionary authority with no published, appealable criteria.

The Compounding Problem: Consular Processing for Indian Nationals

For most Indian nationals, the instruction to "return home and apply at the consulate" sounds straightforward. It is not.

The 10-year ban risk for certain departures: Under current US immigration law, if a foreign national has accrued unlawful presence in the US and then departs, they may trigger a 3-year or 10-year bar on re-entry. Experts and attorneys warned that forcing people from certain countries to return home to apply for a Green Card would result in them being barred from coming back. For Indian students or workers who may have had short gaps in status (an OPT gap, a brief change-of-status delay), this is a genuine risk.

The EB-2 India backlog: Visas in the employment-based second preference (EB-2) category for applicants from India, along with unreserved EB-5 investor visas, are now unavailable for the remainder of the fiscal year, meaning no further approvals can be issued until October 2026. Even if you successfully return to India and apply via consular processing, Indian nationals in EB-2 categories face a decades-long wait for visa number availability.

Consular appointment delays: Indian consulates processing immigrant visa applications face significant appointment backlogs. Applicants who leave the US to apply at the Indian consulate face uncertain timelines for appointment scheduling, interviews, and visa issuance.

What This Means Specifically for Indian Students on F-1 Visas

Two separate policy changes are in effect simultaneously and must not be confused.

Policy 1: PM-602-0199, AOS Discretion (no fixed effective date, in litigation)

This is the Green Card policy discussed throughout this article. It has no September 15 implementation date. Under this policy, consular processing becomes the expected default for adjustment of status unless a USCIS officer determines extraordinary circumstances apply. Do not file or make any travel decisions without qualified US immigration attorney advice.

Policy 2: DHS Duration of Status (D/S) Elimination Rule, effective September 15, 2026

This is a separate DHS final rule with an immediate, fixed effective date.

The F-1 grace period drops from 60 to 30 days, but only for students entering or reentering the US on or after September 15, 2026. Students already in the US and maintaining status on that date retain their 60-day grace period until they exit and reenter.

The bigger structural change: D/S is eliminated entirely. F-1 students admitted from September 15 onward receive a fixed I-94 admission period of up to four years. Students who need additional time must file Form I-539 with USCIS, pay a filing fee, and complete biometrics. There is no automatic buffer; unlawful presence begins accruing the day after I-94 expiry if no extension has been timely filed.

Practical step: File your OPT application at least 90 days before your program end date. Under the 30-day grace period, there is no room for processing delays.

The Broader Pattern: Other 2026 US Immigration Changes

The Green Card abroad policy does not exist in isolation. Several immigration changes introduced or proposed in 2026 could affect student stays, employment-based visas, application costs, and Green Card eligibility for Indians planning to study, work, or settle in the US.

Key concurrent changes:

• Premium processing fee increases from March 1, 2026.
• Processing holds on applications from nationals of 39 "high-risk" countries (expanded from 19 in January 2026).
• Increased scrutiny of public charge assessments.
• Reduced F-1 grace period from 60 to 30 days (effective September 15, 2026).

What Indian Students and Professionals Should Do Right Now

1. Do not make any international travel from the US without legal advice. If you are in the US on any temporary visa with a pending or intended Green Card application, do not depart the US without consulting a US immigration attorney first. Departure can trigger bars to re-entry depending on your specific status history.

2. Consult a qualified US immigration attorney immediately. The case-by-case determination means your outcome depends on your specific facts. No blog, no general guidance, and no counselor can tell you whether you qualify as an "extraordinary circumstance." Only a licensed US immigration attorney reviewing your complete file can do that.

3. File pending applications as soon as possible. If your priority date is current and you were planning to file I-485, file immediately and before any further policy changes. This policy represents a continuing pattern by the Trump administration to significantly narrow practical pathways to permanent residence.

4. Explore alternative study-work destinations seriously. The policy environment in the US in 2026 has materially shifted the risk calculus for Indian students and professionals. Alternative destinations worth evaluating:

The Assessment

The USCIS policy is real and was issued by the official US immigration authority. The federal court intervention has temporarily complicated implementation. The legal situation is evolving. The direction of travel under the current administration is clear: tightening of in-country pathways to permanent residency for temporary visa holders.

For Indian students currently in the US or considering US study, two things are true at the same time. The US remains the world's largest and most well-resourced higher education system, and its immigration environment in 2026 carries significantly more policy risk than it did even 12 months ago. Diversifying your options, applying to top universities in multiple destinations, is no longer overcaution. It is rational planning.

Book a free session with a Leap Scholar counselor to understand how this USCIS policy affects your specific situation, which alternative destinations offer the strongest study-and-settle pathways, and how to build a university shortlist across multiple countries for maximum optionality in 2026-27.

Sources: USCIS Official Press Release, Will Grant Adjustment of Status Only in Extraordinary Circumstances, May 22, 2026 | PBS NewsHour, Foreigners in US Must Apply for Green Cards Abroad, May 22, 2026 | NPR, Trump Administration to Force Foreigners to Apply for Green Card Abroad, May 23, 2026 | American Immigration Council, New USCIS Memo Green Card Applicants Apply from Abroad, updated June 1, 2026 | Greenspoon Marder, USCIS Shifts Green Cards to Consular Processing, June 15, 2026 | USCIS Policy Manual Updates, Court Order June 5, 2026 | Quarles Law Firm, Top 5 Things to Know about New USCIS Adjustment of Status Policy, May 22, 2026 | Newsweek, Green Card Update Changes Happening in July 2026 | MIT International Students, USCIS Hold on Benefit Applications 39 High-Risk Countries, January 2026 | BookMyForex, USD to INR July 27, 2026 | QS 2027 rankings