North Carolina CDL Violations Mirror Other States’ Issues
Federal Auditors Report 54% Noncompliance Rate
Key Takeaways:
- A review of 50 sample license resulted in North Carolina's reported 54% failure rate.
- North Carolina has issued 924 valid non-domiciled CDLs and CLPs.
- North Carolina risks losing up to $48.75 million in fiscal 2027 federal grants.
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The latest enforcement action from Transportation Secretary Sean Duffy against a state over issuance of non-domiciled commercial drivers licenses included a familiar list of alleged offenses.
Duffy on Jan. 8 threatened North Carolina with the in federal funding over policy failures with issuance of commercial driver licenses to immigrant drivers.
An August audit by the Federal Motor Carrier Safety Administration determined that the North Carolina DMV issued non-domiciled CDLs:
• With validity dates beyond a driver’s legal U.S. presence.
• To citizens of Mexico, whose are permitted to drive in the U.S. with commercial driving credentials from their home nation.
• Without securing verification of a foreign driver’s lawful residence in the United States.
These types of offenses have been cited in audits of other states that also face the loss of federal transportation funds over problems with issuance of non-domiciled CDLs and permits.
FMCSA Administrator Derek Barrs outlined “the gravity of the findings” in a 13-page letter sent to North Carolina in the wake of the August audit. A preliminary determination of substantial noncompliance was sent to Gov. Josh Stein and Paul Tine, commissioner of the North Carolina Division of Motor Vehicles. A review of 50 sample license resulted in the reported 54% failure rate.
Barrs said the audit revealed “a breakdown in DMV’s issuance process for non-domiciled CLPs and CDLs.” He added, “DMV was unable to provide evidence of sufficient management controls to prevent these errors or catch them if they occur. Further, DMV has not programmed its systems with sufficient measures to prevent errors from occurring.”
North Carolina has issued 924 valid non-domiciled CDLs and CLPs.
The results of and ’s audit on North Carolina’s non-domiciled CDL program are the worst in the nation. Democrat leadership allowed a culture of negligence and lax oversight to take root, directly endangering our NC families and businesses.
It’s time to restore… — Rep. David Rouzer (@RepDavidRouzer)
The driving credential terms that extended beyond drivers’ legal U.S. status varied in length from three months to more than five years. These drivers were from nations including Afghanistan, Belarus, Colombia, Eritrea, Honduras, Jordan, Nicaragua, Russia and Senegal. The state failed to verify the legal residence of truckers from El Salvador, Guatemala, Haiti, India, Moldova, Ukraine and Venezuela.
Barrs stressed that the compliance issues outlined in his letter were specific to non-domiciled CDLs and permits. He said the agency will separately address areas of noncompliance unrelated to non-domiciled CDLs.
Barrs said his notice was sent “with the expectation that North Carolina will act expeditiously to achieve substantial compliance. To continue in that spirit of partnership toward our common safety goals, my staff stands ready to assist DMV in resolving these serious issues.”
North Carolina risks losing up to $48.75 million in fiscal 2027 federal grants if it doesn’t act soon.
“North Carolina’s failure to follow the rules isn’t just shameful — it’s dangerous,” Duffy said. “I’m calling on state leadership to immediately remove these dangerous drivers from our roads and clean up their system.”
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North Carolina DMV Communications Director Marty Homan his agency “is aware of the letter from the Federal Motor Carrier Safety Administration regarding non-domiciled commercial driver licenses. NCDMV is committed to upholding safety and integrity in our licensing processes. We have been collaborating closely with our federal partners for several months to resolve these matters that are impacting many U.S. states.”
Other states facing FMCSA enforcement action of non-domiciled CDL noncompliance include California, New York, Pennsylvania, Colorado, Texas, South Dakota, Washington and Minnesota.
Previously, New York had the worst failure at 53% while Pennsylvania had the lowest at 5.3%.
Each of these states has been directed to complete corrective measures or forfeit millions in federal grants. So far, California is the only one to permanently lose federal grants; Duffy rescinded nearly $160 million in funds after determining the state didn’t comply with his enforcement directives.
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