The Department of Transportation (DOT) said it is withholding nearly $160 million in federal funding from California, following through on its repeated pressures on the state for failing to revoke 17,400 non-domiciled commercial driver’s licenses (CDLs) by Jan. 5.
On Dec. 30, California pushed against the federal deadline by giving drivers a 60-day extension to get compliant with the Federal Motor Carrier Safety Administration (FMCSA)’s requests.
The DOT flagged the state for illegally issuing licenses expire past the date of a driver’s legal presence in the U.S. Non-domiciled CDLs allow foreign nationals that are legally authorized to work in the U.S., but do not permanently reside there, to drive trucks and buses.
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Transportation Secretary Sean Duffy called it a “reckoning day” for the state.
“Our demands were simple: follow the rules, revoke the unlawfully issued licenses to dangerous foreign drivers and fix the system so this never happens again,” said Duffy in a statement. “Gavin Newsom has failed to do so—putting the needs of illegal immigrants over the safety of the American people. We’re pulling this funding to ensure federal tax dollars don’t fund this charade.”
The FMCSA is withholding $158.3 million, which amounts to 4 percent of funding that would go toward two federal highway and infrastructure programs. The funds would be blocked starting in fiscal year 2027.
The agency issued a final determination Wednesday, indicating that the California Department of Motor Vehicles (DMV) failed to meet the requirement for “substantial compliance” federal stands for issuing both non-domiciled CDLs and commercial learner’s permits (CLPs).
According to a letter written by FMCSA administrator Derek Barrs, the agency reiterated to the DMV that any extension to the initial Jan. 5 deadline was not approved. Barrs also accused California of advising the public of the March 6 deadline without agency approval.
In total, California issued 20,100 non-domiciled CDLs that needed to be revoked, Barrs said. The state is also supposed to take away 2,700 licenses by Feb. 13 due to the expirations.
“Federal regulations are clear: states must correct safety deficiencies on a schedule mutually agreed upon by the agency, and California failed to meet its commitment to rescind these unlawfully issued licenses by January 5,” said FMCSA administrator Derek Barrs in a statement. “We will not accept a corrective plan that knowingly leaves thousands of drivers holding noncompliant licenses behind the wheel of 80,000-pound trucks in open defiance of federal safety regulations.”
A nationwide audit conducted throughout the summer found that more than 25 percent of non-domiciled CDLs in California were improperly issued, prompting the DOT demand for the revocation.
Additionally, the DOT established an interim final rule to enforce state driver licensing agencies to block the issuance of non-domiciled CDLs and CLPs. A federal appeals court held that ruling up in November.
Trucking associations like the Owner-Operator Independent Drivers Association (OOIDA) and the American Trucking Associations (ATA) hailed the department’s decision.
“The days of exploiting cheap labor on the basis of false ‘driver shortage’ claims are over. OOIDA and truckers across America support the Trump administration’s actions to crack down on the issuance of non-domiciled CDLs,” said Todd Spencer, president of OOIDA. “For too long, loopholes in this program have allowed unqualified drivers onto our highways, putting professional truckers and the motoring public at risk.”
The ATA called on state authorities to work with the DOT to expedite the process.
“Ensuring the safety of our nation’s roadways depends on consistent application and enforcement of commercial driver licensing standards nationwide,” said Chris Spear, president and CEO of the ATA. “A CDL assures the motoring public that a driver has met rigorous safety standards—standards that must be enforced uniformly in all 50 states. Because truck drivers operate across state lines, when even one state cuts corners, the consequences are felt nationwide.”
Last month, California filed a lawsuit against the DOT and FMCSA for rescinding $33 million for failing to enforce revived federal English-language proficiency (ELP) mandates for truckers unable to sufficiently communicate in English and read highway signs.
In April, President Donald Trump signed an executive order aimed at enforcing an existing federal law that requires ELP mandates for commercial motor drivers, including truckers.
Last month, Duffy announced that the enforcement led to the removal of 9,500 commercial truck drivers from service.
