Non-Compliance Update: USDOT Threatens to Withhold $30.4 Mil From Minnesota Over Illegally Issued CDLs

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4/27/2026: FMCSA Urgent Update

Staying on top of compliance isn’t just about monitoring your vehicles; it’s about ensuring you aren’t caught in the crossfire of state-level credentialing failures. On December 1, 2025, the Federal Motor Carrier Safety Administration (FMCSA) and U.S. Transportation Secretary Sean P. Duffy announced a severe ultimatum against the State of Minnesota: immediately revoke illegally issued non-domiciled Commercial Driver’s Licenses (CDLs) or risk losing up to $30.4 million in federal highway funding.


“Our audit exposes yet another example of foreigners taking advantage of Minnesota services under Governor Walz’s watch,” said U.S. Transportation Secretary Sean P. Duffy. “Minnesota failed to follow the law and illegally doled out trucking licenses to unsafe, unqualified non-citizens – 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 non-citizens gaming the system ahead of the safety of Americans.”

The Minnesota CDL Crisis and Audit Findings

In a targeted letter sent to Governor Tim Walz and Minnesota Department of Public Safety Commissioner Bob Jacobson, the FMCSA outlined the alarming results of an ongoing nationwide audit. The federal review found that a staggering one-third of the non-domiciled CDLs sampled in Minnesota had been issued illegally.

 

According to the official administrative briefing, the core findings of the Minnesota audit revealed the state recklessly issued non-domiciled CDLs to:

 

  • Drivers whose licenses remained valid long after their lawful presence in the U.S. had legally expired.

  • Drivers who were entirely prohibited under federal rules from holding a non-domiciled commercial CDL.

  • Drivers without the state first verifying the individual’s lawful presence in the United States.

Required Next Steps for Motor Carriers

To avoid losing massive federal highway funding, Minnesota has been given a strict 30-day window to pause the issuance of new non-domiciled CDLs, conduct an internal audit, and immediately revoke all noncompliant licenses.

Because of this impending mass revocation, motor carriers operating with non-domiciled drivers licensed in Minnesota must take the following proactive steps immediately:

 

  1. Audit Your Minnesota Drivers: Do not assume a valid-looking physical CDL means your driver is legal. Immediately cross-reference your non-domiciled Minnesota drivers’ CDLs with their actual federal visa status, Form I-94, and legal expiration dates.

  2. Prepare for Immediate Revocations: Minnesota will be forced to send out cancellation notices to avoid losing its $30.4 million in funding. Prepare for abrupt, immediate license revocations within your fleet and have backup routing plans in place.

  3. Enforce English-Language Proficiency: Ensure all drivers comply with FMCSA’s English-language proficiency (ELP) requirements. Under new strict guidance, drivers who fail to comply are being placed out-of-service nationwide.

What Happens If You Ignore the Fallout?

Federal authorities have made it clear they will not tolerate state-level defiance. FMCSA Administrator Derek D. Barrs noted, “Minnesota is openly and blatantly defying our rules, plain and simple… Under the Trump Administration, states have two choices: meet our standards or face the consequences. Following the law is not optional.”

 

If your fleet employs a driver whose Minnesota CDL is revoked as part of this federally mandated purge, and they are caught behind the wheel, they will be placed out-of-service (OOS) immediately at the nearest weigh station or inspection point. The resulting freight delays, towed equipment, liability risks, and federal fines for your operation will be severe.

 

Do not wait for a state notification that may never arrive in time. Audit your fleet’s hiring and compliance protocols today to ensure your operations keep moving smoothly and legally.

 

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*** Disclaimer: The information provided on this website does not, and is not intended to, constitute legal, technical, or regulatory compliance advice; instead, all information, content, and materials available on this site are for general educational and informational purposes only. Motor carriers and drivers should consult directly with the FMCSA, the DOT, or their own legal counsel for advice concerning specific compliance or registration matters.
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