Persons can also obtain permanent resident status as either a refugee or as an asylee. Refugees are located outside the U.S., and seek protection in the U.S. on the grounds that they face persecution in their country. To be admitted as a refugee, a person must establish a well-founded fear of persecution on the basis of either race, religion, membership in a social group, political opinion, or national origin. Refugees usually apply for admission to the U.S. in a refugee camp or other designated site. The U.S. limits the total number of refugees each year, and sets a ceiling for different regions of the world. For fiscal year 2005 the total refugee limit is 70,000, allocated to six regions as follows: Africa (20,000 admissions), East Asia (13,000 admissions), Europe and Central Asia (9,500 admissions), Latin America/Caribbean (5,000 admissions), Near East/South Asia (2,500 admissions) and 20,000 reserve.

Persons already in the U.S. may apply for asylum. Like a refugee, an asylum applicant must establish a well-founded fear of persecution in their home country on the basis of either race, religion, membership in a social group, political opinion, or national origin. In most cases, a person must apply for asylum within one year of entering the U.S. However, exceptions to the one-year rule may apply to an applicant who has waited longer than one year to apply.

Refugees and asylees may apply for permanent residence after one year in the U.S. Only 10,000 aslyees are permitted to become permanent residents each year. However, on average 25,000 to 40,000 applications are submitted each year, resulting in a tremendous backlog. As of January 10, 2005 over 180,000 asylee adjustment applications were pending. Accordingly, asylee adjustment applications filed today will probably take over ten years, absent legislation allowing otherwise.

No annual limit for adjustment applications exists for refugees.