On January 26, 2022, the United States Medical Licensing Examination (USMLE) Step 1 exam transitioned to a pass-fail grading system instead of the conventional three-digit score. This move was intended to decrease the emphasis on Step 1 scores and facilitate a more holistic approach by programs in the residency selection process. However, since the implementation of the new grading system, we have seen a lower passing percentage among all medical students, including U.S. MDs, DOs, and international medical graduates. In this article, we assess the USMLE Step 1 performance data since the change in scoring and some factors that may have contributed to the lower passing rates among all medical students.