The U.S. Department of Transportation recently announced an emergency interim final rule restricting eligibility for non-domiciled commercial learner's permits and commercial driver's licenses. 

The regulation, which comes in response to an ongoing nationwide audit by the Federal Motor Carrier Safety Administration (FMCSA) into state licensing practices, includes: 

• A stricter process for obtaining or renewing non-domiciled CDLs. 

• Instructions for state driver's licensing agencies to revoke all current non-domiciled CDLs that have been "unlawfully" issued. 

• Imposed financial penalties, like withholding federal highway funding for states that fail to amend non-domiciled CDL issuing practices. 

Published in late September, the regulation took immediate effect and states that non-citizens will not be eligible for a non-domiciled CDL unless they meet stricter requirements, including an employment-based visa and a mandatory federal immigration status check through the SAVE system. 

A non-domiciled CDL is issued to someone who is not a U.S. citizen or permanent resident, is domiciled in a foreign country, but is legally allowed to work in the U.S. under a temporary U.S. work authorization. 

"[This action] will prevent unsafe foreign drivers from renewing their license and hold states accountable to immediately invalidate improperly issued licenses," U.S. Transportation Secretary Sean P. Duffy said in a USDOT release. 

FMCSA Claims Licensing Failures in California and Other States 

FMCSA claims to have uncovered "systemic non-compliance" across several states, most notably California, citing "weak oversight, insufficient training, and programming errors," leading to a large number of non-domiciled CDLs issued to: 

• Drivers who were ineligible. 

• Drivers whose licenses were valid after their lawful presence in the U.S. expired. 

According to the USDOT release, Colorado, Pennsylvania, South Dakota, Texas, and Washington were also identified as states with licensing practices inconsistent with federal regulations. 

FMCSA claims more than 25% of non-domiciled CDLs reviewed in California were improperly issued. Some licenses extended as many as four years beyond the expiration date of their lawful presence documentation. 

In addition to the emergency rule, Secretary Duffy also announced direct enforcement action against California. The department asked the state to immediately: 

1. Pause issuance of non-domiciled CDLs. 

2. Identify all unexpired non-domiciled CDLs that fail to comply with FMCSA regulations. 

3. Revoke and reissue all noncompliant non-domiciled CDLs if they comply with the new federal requirements. 

California has 30 days to come into compliance, or FMCSA will withhold federal highway funds — starting at nearly $160 million in the first year and doubling in year two. 

California Governor Gavin Newsom's press office posted on X in response to Duffy, emphasizing that California CDL holders are involved in fewer fatal crashes than drivers nationwide. 

It appears the Secretary of Transportation is having a challenging time understanding the road rules.

Unlike him, we’ll stick to the facts: California commercial driver’s license holders have a fatal crash rate nearly 40% LOWER than the national average.

And when you look at… https://t.co/374dffYxLF

— Governor Newsom Press Office (@GovPressOffice) September 26, 2025

What the New CDL Rule Means for School Transportation 

Although more info is circulating in the trucking and delivery industries, that doesn't mean impacts won't be felt in school transportation. 

According to a legal alert from California-based law firm Hanson Bridgett, by "casting doubt on the legitimacy of all current non-domiciled CDLs," the emergency regulation has increased the risk of liability for school transportation, trucking, and logistics companies. 

As some drivers are re-evaluated, suspended, or lose eligibility, districts and contractors may need to shift routes, rearrange staffing, or address unplanned gaps. In other cases, some districts may face tighter driver eligibility requirements or potential driver shortages if drivers with non-domiciled CDLs cannot renew or meet the new regulations. 

However, implementation can differ from state to state as agencies begin adopting the rules, with some states already seeing issuance pauses for non-domiciled CDLs. In states under federal scrutiny, like California, there may be stricter enforcement or sanctions. 

In the meantime, there are still steps districts can take to mitigate risk while uncertainty gets flushed out. 

Hanson Bridgett recommends that companies and contractors "take immediate steps to mitigate their increased exposure to liability," especially during the transition period for this emergency regulation. 

Suggested steps from Hanson Bridgett include auditing all drivers for non-domiciled CDLs, verifying eligibility with legal counsel, and limiting the use of these drivers until records prove an individual's CDL will not be "revoked based on ongoing and forthcoming audits." Contracts should clearly require valid licensing, legal status, and driver qualifications.