Understanding the Impact of DOT’s Emergency CDL Ruling on Trucking
“It’s quite straightforward,” Duffy stated. “Achieve compliance right now or we will withdraw funding and compel you to adhere.” (Yuki Iwamura/Bloomberg) September 29, 2025 11:00 AM, EDT Key Takeaways: The Transportation Department declared a national emergency on September 26 following an audit tha
“It’s quite straightforward,” Duffy stated. “Achieve compliance right now or we will withdraw funding and compel you to adhere.” (Yuki Iwamura/Bloomberg)
September 29, 2025 11:00 AM, EDT
Key Takeaways:
The Transportation Department declared a national emergency on September 26 following an audit that revealed major failures in how states manage commercial driver licenses for noncitizens. New federal guidelines necessitate in-person renewals, verification of immigration status by DHS, and linkage of license expiration to immigration documentation, with California facing the most significant penalties. States must act promptly to avoid losing highway funding while industry representatives assert that this enforcement is crucial for safety and will not disrupt the supply chain.
The Department of Transportation has issued a “national emergency” regarding the way states handle commercial driver licenses for noncitizens, mandating immediate reforms that could impact numerous drivers and potentially alter hiring practices within the trucking sector.
On September 26, Transportation Secretary Sean Duffy revealed that an audit by the Federal Motor Carrier Safety Administration (FMCSA) uncovered significant shortcomings in how several states provide non-domiciled CDLs and commercial learner’s permits to foreign nationals residing in the United States.
New Rule Requirements
An interim final rule from the FMCSA, effective September 26, imposes rigorous criteria for noncitizens applying for CDLs or CLPs. This includes restricting eligibility to certain lawful employment-based non-immigrant categories and mandating in-person renewals instead of online or mail-in processes.
States must adhere to the following requirements:
- Verify applicant documentation through the DHS Systematic Alien Verification for Entitlements system.
- Retain non-domiciled application documents for a minimum of two years.
- Align CDL/CLP expiration dates with U.S. Immigration Form I-94/94A dates or set licenses to expire after one year, whichever is sooner.
- Downgrade non-domiciled licenses if drivers lose eligibility.
“All states must halt issuing non-domiciled CDLs until they comply with our updated rules,” Duffy remarked. “It’s straightforward: comply now or face funding cuts and forced compliance.”
States Under Scrutiny
California faces the most severe repercussions, as FMCSA auditors found that 25% of its non-domiciled CDLs violated federal regulations—what Duffy termed the most “egregious” situation among states. With 60,000 non-domiciled CDLs issued, California has 30 days to comply or risk losing $160 million in federal highway funds, a penalty that would double if it misses the deadline again.
California must immediately:
- Cease issuing non-domiciled CDLs.
- Identify unexpired non-domiciled CDLs not in compliance.
- Revoke noncompliant licenses and reissue compliant ones according to new federal rules.
Duffy also highlighted Colorado, Pennsylvania, South Dakota, Texas, and Washington for their licensing discrepancies, warning that any noncompliant state risks losing its licensing authorities.
Importance of the Changes
The audit disclosed extensive issues, including licenses issued to ineligible individuals and licenses remaining valid long after the expiration of holders’ legal U.S. residency. “Many states have not even been verifying necessary immigration documents, but they must now use the federal immigration database for validating every application and renewal of non-domiciled CDLs,” stated FMCSA Chief Counsel Jesse Elison. Duffy stressed the critical nature of the situation: “The licensing process is fundamentally broken. It poses a public safety threat and creates a national emergency that demands immediate action.”
Industry Impact
When questioned about the possible adverse impact on the supply chain from removing illegal non-domiciled CDL holders, Duffy expressed confidence there would be no disruptions. “We have sufficient truckers to satisfy industry demand,” he asserted, emphasizing the absence of anticipated supply chain interruptions. The American Trucking Associations welcomed the announcement as “a necessary and positive step,” affirming that “Duffy’s actions today send a clear message: Safety and compliance aren’t optional.”
Background on Non-Domiciled Licenses
Very few states do not issue non-domiciled CDLs and CLPs, and those that do must comply with specific FMCSA guidelines. Notably, citizens from Mexico and Canada do not need non-domiciled licenses since the U.S. recognizes their commercial licenses.