To amend title 32, United States Code, to authorize enlistment of certain non-resident aliens in certain under-strength National Guard units during a three-year test period and to amend the Immigration and Nationality Act to provide for adjustment of status of aliens so enlisting.

Authorizes the Secretary of each military department concerned to accept for original enlistment in the Army or Air National Guard of six States chosen by the Secretary of Defense certain aliens not already admitted for permanent residence in the United States during a three-year test period if the total personnel strength of the Guard is less than 95 percent of its total authorized strength as of September 30, 1990. Requires such aliens, in addition to taking a military-service oath, to declare an intention to become citizens of the United States. Voids such an enlistment under certain conditions. Limits the number of aliens permitted to be so enlisted to 1,000 during any fiscal year. Authorizes the President to increase such number as appropriate.

Amends the Immigration and Nationality Act to direct the Attorney General to adjust to a temporary lawfully-admitted status any alien who: (1) is an enlisted member of the Army or Air National Guard; (2) is otherwise admissible as an immigrant; (3) has not been convicted of any felony or three or more misdemeanors in the United States; (4) has not assisted in the persecution of any person on account of race, religion, nationality, or membership in a particular social group; and (5) was in the United States as of the enactment of this Act and has resided continuously in the United States since such date. Requires any spouse or child of such alien to satisfy such requirements (except for the enlistment requirement) in order to have his or her status adjusted. Provides for the termination of the temporary lawfully-admitted status of such aliens under specified conditions.

Authorizes an alien who completes at least six years of honorable service in the Guard to apply for a certificate of adjustment to permanent resident of the United States. Provides identical adjustment for the spouse and child of such alien if the alien so qualifies. Provides for the waiver of: (1) the six-year service requirement under certain conditions; and (2) numerical limitations and certain grounds for exclusion from permanent-status consideration under the Immigration and Nationality Act for aliens covered under this Act. Provides an expedited naturalization procedure for an alien who is granted lawful permanent residence under this Act and who reenlists in the Army or Air National Guard for an additional term of six years.