Non-Domiciled CDL Fight Shifts Into High Gear

A legal challenge over the federal government’s non-domiciled commercial driver’s license rules moved forward Sept. 11, as the U.S. Court of Appeals for the D.C. Circuit heard arguments in a dispute between the California Department of Motor Vehicles and the U.S. Department of Transportation.

The case centers on the Federal Motor Carrier Safety Administration’s decision to withhold approximately $160 million from California after the state failed to cancel more than 17,000 non-domiciled CDLs that the agency said were improperly issued.

California challenges federal funding penalty

Transportation Secretary Sean Duffy announced the funding action in January. FMCSA contends California did not comply with federal requirements governing the issuance and review of non-domiciled commercial licenses.

During arguments before the appeals court, Justice Department attorney Simon Jerome defended the agency’s position that a CDL should not remain valid for years when it was issued on the basis of an immigration or employment document that expires shortly after the license is issued.

Jerome said that issue is central to California’s challenge. A temporary pause ordered by FMCSA after the agency and California failed to resolve their differences applied only to the issuance of new non-domiciled CDLs and the renewal of existing licenses.

Disputed crash data

The Transportation Department has said drivers who would no longer qualify under the new rules were involved in at least 17 fatal crashes that killed 30 people in 2025.

However, the Federal Motor Carrier Safety Administration does not track crash involvement by citizenship status or CDL category, according to reporting cited in the case. The Sikh Coalition has also argued in federal filings that non-domiciled CDL holders accounted for less than 2% of large-truck crashes, while U.S.-domiciled CDL holders accounted for more than 98%.

The differing claims have become a central part of the broader debate over whether the new eligibility requirements are supported by comparative safety data. Federal officials have cited individual crashes and licensing concerns, while opponents have questioned whether the available data demonstrates that non-domiciled CDL holders present a greater safety risk.

New eligibility limits affect drivers and carriers

The federal rule limits non-domiciled CDL eligibility to drivers with lawful immigration status who fall within specified employment-based nonimmigrant categories, including H-2A, H-2B and E-2 visas.

In court filings, challengers have said the rule could make approximately 97% of current noncitizen non-domiciled CDL holders ineligible. FMCSA has estimated that the changes could remove roughly 200,000 CDL holders from the eligible driver pool, while other agency projections have indicated that approximately 194,000 non-domiciled drivers could ultimately exit the industry.

Since the enforcement shift began in June 2025, the Transportation Department has reported that more than 28,000 drivers were placed out of service for failing to meet the applicable requirements. California separately canceled approximately 13,000 non-domiciled CDLs on March 6, 2026.

Industry and congressional response

The changes have increased compliance concerns for motor carriers, which must verify that drivers hold valid credentials and meet federal qualification requirements. The issue is also reducing the pool of drivers available to fleets that have relied on non-domiciled CDL holders.

Industry groups have called for states to review and revoke improperly issued licenses while avoiding unnecessary re-certification for drivers who remain qualified. Other proposals would strengthen standards for entry-level driver-training providers.

Legislation known as the Non-Domiciled CDL Integrity Act, or House Resolution 5688, has also been proposed. Supporters say placing the new eligibility standards in federal law would prevent future administrations or court decisions from reversing the changes.

The D.C. Circuit’s decision could determine whether FMCSA may withhold California’s federal funding and how broadly the agency can enforce the non-domiciled CDL requirements nationwide.