top of page

Lawsuit Challenges Two USCIS Green Card Policies: What I-485 and EB-5 Applicants Should Know

7 days ago
3 min read
iCross and ARCFE New York real estate-backed EB-5 investment banner

On October 5, 2026, the American Association of University Professors (AAUP), labor unions, immigrant advocacy organizations and individual green card applicants filed a lawsuit in federal district court in Massachusetts challenging two U.S. Citizenship and Immigration Services (USCIS) policies.


The plaintiffs are seeking to block and overturn changes involving discretionary review of adjustment-of-status applications and the circumstances in which officers may deny a case without first issuing a Request for Evidence (RFE) or Notice of Intent to Deny (NOID). The American Immigration Lawyers Association (AILA) announced the lawsuit on October 5.


American Immigration Lawyers Association October 5, 2026 statement challenging two USCIS green card policies

Which Two USCIS Policies Are Being Challenged?


May 21, 2026: Adjustment of Status Discretion


The first policy concerns how USCIS weighs discretionary factors in Form I-485 adjustment-of-status applications. The plaintiffs argue that treating an applicant's decision to apply for permanent residence from within the United States as a negative factor would depart from established adjudication practices and disadvantage otherwise eligible applicants.


August 5, 2026: Evidence Requests and Denials


The second policy addresses when an officer may deny an application without first giving the applicant an opportunity to provide additional evidence through an RFE or NOID. It applies to certain newly filed and pending cases.


The plaintiffs contend that these changes alter long-standing procedures and can deprive applicants of a meaningful opportunity to address evidentiary concerns. Their claims include alleged violations of the Administrative Procedure Act.


Has the Lawsuit Changed I-485 Processing?


John Joseph Moakley United States Courthouse in Boston, Massachusetts

As of October 14, 2026, no publicly announced court order has suspended either policy. USCIS continues to adjudicate applications under its existing rules while the case proceeds.


The August policy does not eliminate RFEs or NOIDs. Officers may still request additional documentation where appropriate; the dispute concerns their authority to reach a denial without issuing one in certain circumstances. Applicants should continue preparing and filing their cases according to current requirements.


What Does This Mean for EB-5 Investors?


The lawsuit has not changed the underlying EB-5 Immigrant Investor Program or the ability of qualified investors to pursue concurrent filing.


An eligible investor already in the United States may still file Form I-526E and Form I-485 concurrently when a visa number is available and the applicable adjustment-of-status requirements are met. Investors with pending applications should continue following their case instructions and consult immigration counsel about supporting evidence.


iCross × ARCFE will continue monitoring the litigation and sharing material policy developments relevant to EB-5 investors and their families. Explore ARCFE's EB-5 program for additional information.


This article is for general information only and does not constitute legal, immigration, tax or investment advice. The litigation remains pending, and outcomes may change.


Recent ARCFE EB-5 Principal Repayment Highlights


Explore ARCFE’s latest EB-5 principal repayment milestones across pre-RIA and post-RIA projects. Click any image below to read the full project update.

ARCFE Group 12 post-RIA EB-5 principal repayment update

ARCFE Group 12

Post-RIA Principal Repayment

ARCFE Group 13 post-RIA EB-5 principal repayment update

ARCFE Group 13

Post-RIA Principal Repayment


Explore Current New York Real Estate-Backed EB-5 Opportunities


ARCFE Skyline Tower II New York real estate-backed EB-5 project
Luxury condominium development in Long Island City.
ARCFE Group 17 1CPS Tower EB-5 project in Flushing, New York
First-lien senior construction financing alongside Ponce Bank.

Considering EB-5 for Your Family?



Speak with an iCross × ARCFE EB-5 specialist to discuss your immigration goals, timeline, and available investment opportunities.



Related ARCFE Resources


Review important travel, residency, tax and immigration considerations after receiving a conditional green card.

Understand how senior debt, mezzanine financing and equity differ in repayment priority and risk exposure.


ARCFE New York headquarters contact information: www.arcfe.com, +1 (212) 889-5333, info@arcfe.com, and 28-07 Jackson Avenue, Long Island City, NY 11101.

iCross and ARCFE logo
ARCFE – IIUSA member, I-829 Award recipient for 2020–2022, 2024 and 2025, and AIIA sponsor
Get in touch
28-07 Jackson Ave, 8th Floor
Long Island City NY 11101


 
  • Facebook
  • LinkedIn
  • Youtube
Email: info@arcfe.com

Tel: (212) 889-5333

Whatsapp: +1 (917) 769-9974

No offer to sell any security is made by this website. The information on this web site is not an offer to sell or solicitation of an offer to buy an interest in any investment or for the provision of any investment management or advisory services. Any such offer or solicitation will be pursuant to exemptions from registration requirements set out in applicable securities laws and made only by means of delivery of a confidential private offering memorandum relating to a particular investment to qualified investors in those jurisdictions where permitted by law.

bottom of page