Minnesota Catches FMCSA Heat for Non-Domiciled CDLs
Auditors Find State Issued 33% Irregular Non-Domiciled CDLs, $30M at Stake
Key Takeaways:
- The U.S. Department of Transportation warned Minnesota it could lose $30 million after a federal audit found one-third of its non-domiciled commercial driver licenses were issued illegally.
- FMCSA said Minnesota’s practices violated federal rules, citing expired lawful presence dates, inadequate residency verification and licenses granted to drivers who should have received different credentials.
- Minnesota has 30 days to implement corrective actions or risk funding cuts in FY2027 and FY2028 and possible decertification of its CDL program.
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U.S. Transportation Secretary Sean Duffy has warned Minnesota it could lose $30 million in grants after one-third of its non-domiciled commercial driver licenses were issued illegally.
“Minnesota failed to follow the law and illegally doled out trucking licenses to unsafe, unqualified noncitizens — endangering American families on the road. That abuse stops now under the Trump administration. The Department will withhold funding if Minnesota continues this reckless behavior that puts noncitizens gaming the system ahead of the safety of Americans,” .
His statement sent the same day by Federal Motor Carrier Safety Administrator Derek Barrs to Gov. Tim Walz and Bob Jacobson, commissioner of the Minnesota Department of Public Safety, detailing federal audit results and giving a 30-day deadline to take corrective measures.
“Our audit exposes yet another example of foreigners taking advantage of Minnesota services under Governor Walz’s watch,” Duffy said.
Failure by Minnesota to resolve irregularities in its issuance of non-domiciled CDLs and commercial learner’s permits could result in the state losing its Highway Trust Fund apportionment from the U.S. Department of Transportation and decertification of its CDL licensing authority.
The 12-page letter detailed the agency’s preliminary determination that Minnesota showed “unacceptable deviation from FMCSA’s regulations when issuing credentials to operate commercial motor vehicles.”
In September, FMCSA auditors conducted an annual program review of how the Minnesota DPS’ Driver and Vehicle Services issues its CDLs and CLPs. This review also became part of an ongoing national FMCSA review of how states have been issuing non-domiciled licenses and permits that Duffy launched in June.
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FMCSA auditors found 33% of 75 drivers holding state-issued CDLs and CLPs were issued them contrary to federal regulations due to “evidence of policy and procedural errors.” Minnesota has 2,117 drivers holding active non-domiciled CLPs and CDLs.
Some drivers issued problematic CDLs were citizens of Bulgaria, El Salvador, Kenya, Mexico, New Zealand, Somalia, Saudi Arabia and Ukraine.
According to Barrs’ letter, DVS issued 16 non-domiciled CDLs with expiration dates from three weeks to four years after the expiration date of a driver’s lawful U.S. presence.
FMCSA also pointed out that when DVS granted commercial driving privileges, it lacked evidence to verify a driver’s lawful U.S. residence.
Also, the agency noted some non-domiciled CDLs were given erroneously to:
- Mexican citizens who are supposed to have CDLs from their home nation, and
- Lawful permanent U.S. residents who should have been given regular CDLs.
FMCSA outlined the following actions Minnesota must take:
- Pausing issuing non-domiciled CDLs and CLPs,
- Identifying all unexpired non-domiciled ones that fail to comply with FMCSA regulations,
- Conducting a comprehensive internal audit to identify all procedural and programming errors, training and quality assurance problems, insufficient policies and practices, and other issues.
“It is imperative that the corrective action addresses voiding or rescinding all unexpired noncompliant non-domiciled CLPs and CDLs,” the letter stated.
If FMCSA issues a final determination that Minnesota continues to be in “substantial noncompliance,” it could lose 4% ($30 million) of its National Highway Performance Program and the Surface Transportation Block Grant Program funds for fiscal year 2027. If the issues remain unresolved, that lost revenue amount will double in FY2028 to $60 million.
“Once funds are withheld following a substantial noncompliance determination, they are no longer available for apportionment to Minnesota,” Barrs stated. “In addition, if FMCSA issues a final determination of substantial noncompliance, the agency may decertify Minnesota’s CDL program. Decertification of Minnesota’s CDL program would prohibit the state from issuing, renewing, transferring or upgrading CLPs and CDLs until such time as FMCSA determines that DVS is in substantial compliance.”
Chad Lindholm of Clean Energy reflects on how dramatically the renewable natural gas discussion has evolved in trucking.Tune in above or by going to .
Of significance, FMCSA concluded that its notice only discussed non-domiciled CDLs and it would “separately address areas of noncompliance unrelated to non-domiciled CDLs.” No specifics were given about this future action, however.
Minnesota now joins a growing list of states FMCSA has put on notice for issuing noncompliant CDLs and CLPs. The other states dealing with corrective actions and FMCSA threats to withhold millions of dollars are California, Colorado, Pennsylvania, Texas, South Dakota and Washington.
“Minnesota is openly and blatantly defying our rules, plain and simple,” Barrs said in a public statement. “Under the Trump administration, states have two choices: meet our standards or face the consequences. Following the law is not optional.”
