New York has become the latest state scrutinized by the FMCSA for allegedly mismanaging the issuance of “non-domiciled” commercial driver’s licenses. This follows a legal challenge that has temporarily stalled the agency’s emergency rule from September.
Despite a legal hold on the FMCSA’s emergency rule that limits states in issuing “non-domiciled” commercial driver’s licenses due to a challenge, the agency is still investigating states previously flagged for CDL-related issues, including New York.
On December 12, U.S. Transportation Secretary Sean Duffy warned New York that it may lose $73 million in highway funding, as an FMCSA audit indicated that over half of the non-domiciled CDLs issued by the New York DMV were unlawful.
“When an applicant presents work authorization, regardless of duration—be it 30 days, 60 days, or one year—New York automatically grants them an eight-year commercial driver’s license,” Duffy stated at a press conference. “This is against the law.”
The FMCSA’s audit revealed that out of 200 sampled records, 107 were issued in breach of federal regulations, which equates to a failure rate of more than 53%. The DMV’s systems defaulted to providing eight-year licenses to foreign drivers without considering their legal status expiration dates.
Duffy has mandated that New York revoke all illegal CDLs within 30 days, cease issuing any new licenses or learner’s permits, and execute a thorough audit.
The New York DMV, however, contests these findings. Spokesperson Walter McClure accused Duffy of dishonesty, asserting that all issued CDLs comply with federal guidelines and are verified through appropriate documentation.
Status of the FMCSA’s Emergency Rule on Non-Domiciled CDLs
An appeals court temporarily paused the FMCSA’s emergency interim rule limiting states’ authority to provide “non-domiciled” commercial driver’s licenses. The agency will now undergo a complete rulemaking process. The September emergency rule specifically targeted individuals on work visas such as H-2A and H-2B, excluding asylum seekers and DACA recipients from eligibility.
Challenges Related to Non-Domiciled CDL Rule
Two lawsuits challenge the rule, claiming it unlawfully excludes numerous legal workers from commercial driving. As a result, around 200,000 individuals may lose access to these licenses, risking their employment. One notable case, Lujan v. FMCSA, was filed by drivers including a DACA recipient alongside two unions.
Bypassing the Required Rulemaking Process
Critics argue the rule was executed without following mandatory notice and comment procedures for federal regulations. FMCSA stated that immediate action was necessary to “restore integrity” to CDL issuance. This dramatic change in policy aimed to prevent a surge of applications from now-ineligible applicants.
Looking Ahead to a Potentially Revised Final Rule
The ongoing litigation may ultimately determine the extent of FMCSA’s authority regarding non-domiciled driver eligibility. A full review and public comment period remain open until November 28, 2025, indicating that FMCSA intends to finalize its rule irrespective of the court case, which may not conclude until 2026.
Challenges with Non-Domiciled Licenses
Non-domiciled CDLs are granted to those legally allowed to work in the U.S. but not permanently residing in the issuing state. Some states are reconsidering or discontinuing these programs amid scrutiny. Other states, like Nevada, are phasing out the issuance of these licenses following federal actions.
