DOT Crackdown Puts Thousands of Non-Domiciled CDLs — and State Highway Funding — at Risk
Federal transportation officials say California and Pennsylvania improperly issued commercial driver’s licenses to non-domiciled applicants, ordering states to cancel invalid CDLs or face the loss of millions in highway funds.
- By Stasia DeMarco
- Dec 01, 2025
The federal government has declared thousands of commercial driver’s licenses issued to non-domiciled applicants in California and Pennsylvania invalid and warned the states that their federal highway funding could be cut unless they comply with new national licensing rules.
Under an emergency action announced by the Department of Transportation and FMCSA, hundreds of thousands of non-domiciled licenses issued to foreign citizens have been scrutinized after a nationwide audit flagged widespread violations. DOT said on Nov. 12 that the California Department of Motor Vehicles had illegally issued approximately 17,000 such licenses and that all must be canceled or the state could lose $160 million in federal transportation funds.
In a separate action, DOT informed the Pennsylvania Department of Transportation that its issuance of non-domiciled commercial driver’s licenses was noncompliant with federal standards, placing about $75 million in federal funds on the line if the state does not correct the violations. FMCSA issued a preliminary determination of noncompliance and outlined steps state licensing agencies must take to regain eligibility for federal funds.
The emergency rule, issued Sept. 26, immediately tightened eligibility requirements for non-domiciled commercial learner’s permits and commercial driver’s licenses. DOT officials cited a rise in “horrific, fatal crashes” involving non-domiciled drivers — along with audit findings — as justification for urgent intervention. The interim final rule restores stricter domicile-based licensing standards nationwide.
State officials now face pressure to review and revoke invalid licenses, retest affected drivers, and comply with federal licensing protocols. DOT has pledged to withhold funding from jurisdictions that fail to act.
“This emergency action is essential to protect public safety and restore integrity to U.S. roads,” DOT said in one of its press announcements.
The licensing crackdown has major implications for trucking companies, employer-sponsors, and state-level licensing agencies. Under the new rule, many non-resident drivers must upgrade their credentials or risk being removed from the road.
As of now, 17,000 California CDLs have been revoked. Pennsylvania and other states under review have been given a short window to comply with and avoid funding disruption.
DOT and FMCSA said they will continue audits and monitoring nationwide to ensure compliance and road safety.
About the Author
Stasia DeMarco is the Content Editor for OH&S.