Illegal CDLs: North Carolina Could Lose $50M in Federal Funds

North Carolina CDLs Face Federal Scrutiny

The U.S. Department of Transportation (DOT) has found major problems in how North Carolina issued commercial drivers licenses (CDLs) to foreign commercial truck drivers. A federal review by the Federal Motor Carrier Safety Administration (FMCSA) showed that 54 percent of the state’s non-domiciled CDLs were issued illegally.

The findings are part of a nationwide audit ordered by Transportation Secretary Sean P. Duffy. The audit looks at how states issue CDLs to drivers who are not U.S. residents but are legally allowed to operate commercial trucks in the country.

Federal officials say North Carolina failed to follow key rules meant to ensure that only qualified and lawfully present drivers hold these licenses.

Nearly $50 Million in Funding Tied to CDLs

The DOT has warned that nearly $50 million in federal funding could be withheld if the state does not comply.

FMCSA sent a formal letter to Governor Josh Stein and Public Safety Commissioner Paul Tine detailing the audit results and the steps required to fix the problems. The agency says the state must bring its handling of CDLs into full compliance with federal law to avoid losing federal funds.

For the trucking industry, this funding supports highway safety programs, enforcement, and transportation systems that depend on properly issued CDLs.

What the FMCSA Found in North Carolina CDLs

The federal audit showed that North Carolina issued licenses to drivers who should not have qualified under federal rules. FMCSA found that the state approved non-domiciled CDLs for:

• Drivers whose lawful presence in the U.S. had already expired

• Some drivers who were not eligible to hold non-domiciled CDLs

• Drivers whose legal status was not verified before a CDL was issued

Federal law requires states to verify that foreign drivers are legally present and eligible before issuing CDLs. FMCSA says North Carolina did not always follow these steps.

Required Fixes for Non-Domiciled CDLs

To prevent federal funding from being withheld, North Carolina must take several corrective actions.

The state must immediately pause the issuance of non-domiciled CDLs. It must then identify all active licenses that do not meet FMCSA rules.

Any license found to be noncompliant must be revoked. Drivers who meet federal standards may have their license reissued after proper checks.

North Carolina must also conduct a full internal audit of its CDL system. This review must cover computer programs, staff training, quality controls, and policies that allowed noncompliant CDLs to be issued.

Federal Officials Warn About CDL Safety Risks

Transportation Secretary Sean P. Duffy said North Carolina’s handling of CDLs created serious safety risks. He said the state’s failure to follow federal rules allowed drivers who were not properly vetted to operate commercial vehicles.

FMCSA Administrator Derek D. Barrs described the level of CDL noncompliance as “egregious” and said the agency will continue to hold states accountable.

For the trucking industry, properly issued CDLs are critical to road safety, fair competition, and trust in the commercial driver system.

Nationwide CDL Audit Expands

North Carolina is one of several states under review as part of a nationwide CDL audit launched by the DOT. The audit followed an executive order from President Trump focused on truck driver roadway safety.

FMCSA says the review has already uncovered serious CDL problems in states such as California and Pennsylvania. The goal is to ensure all states follow the same federal standards when issuing CDLs to foreign drivers.

The agency says this effort is meant to prevent unqualified or ineligible drivers from operating large commercial trucks.

New Enforcement for CDL English Requirements

Along with the CDL audits, the DOT has issued new guidance to strengthen English-language rules for commercial drivers.

Under the updated policy, any commercial motor vehicle driver who does not meet FMCSA’s long-standing English-language proficiency requirements may be placed out of service, even if they hold a valid CDL.

These steps follow President Trump’s executive order naming English as the official language of the United States and are meant to improve safety and communication on the road.

What the CDL Crackdown Means for Trucking

For truck drivers and carriers, the North Carolina case shows that federal officials are taking a harder look at how CDLs are issued and enforced. States that fail to follow federal rules now face the risk of funding cuts and forced license revocations.

FMCSA says the goal is to make sure every CDL holder meets the same legal and safety standards. As the nationwide audit continues, more states could face similar action if their CDL systems are found to be out of compliance.