California Non-Domiciled CDL Crackdown Raises National Risks
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Carriers across the country are watching California closely after the state cancelled 17,000 non-domiciled commercial driver’s licenses. While California officials and the U.S. Department of Transportation (DOT) continue to argue over who is at fault, industry experts say the real issue is the growing focus on safety and compliance at the federal level.
The situation stems from a dispute between California Governor Gavin Newsom and U.S. Transportation Secretary Sean Duffy. Earlier this week, Newsom’s office accused Duffy of “spreading easily disproved falsehoods” after a DOT press release claimed that California had illegally issued the 17,000 non-domiciled CDLs.
According to Newsom, the licenses were valid when issued. He argued that they were withdrawn only because new federal rules for non-domiciled CDL holders went into effect in September, forcing the state to bring its process back into alignment with updated DOT requirements.
Duffy pushed back, stating in a social media post that Newsom was “blatantly lying to the American people.” He said the emergency rule he issued was necessary because California had ignored long-standing FMCSA requirements, and that the agency “is reprimanding California for violating FMCSA’s original rules.”
A National Issue, Not Just California’s
Industry analysts say the political argument is overshadowing a deeper concern. Because CDL licensing is handled by 50 separate state agencies, each one interprets and applies federal guidance differently. That older guidance did not always address security and documentation issues tied to non-domiciled drivers.
“This is not a California problem,” one transportation policy expert explained. “This is the result of having a nationwide CDL system run by individual states, each influenced by local politics and outdated federal direction.”
He warned that both public transit agencies and freight carriers need to be proactive when hiring drivers who hold non-domiciled CDLs. With new federal scrutiny, companies could face higher liability exposure if a driver is found to be improperly licensed.
Analysts Expect More States to Face Scrutiny
TD Cowen analyst Jason Seidl said he expects the DOT to take similar action in other states. He noted that Illinois and Washington could be next, based on FMCSA data showing significant increases in CDL issuance over the past several years.
Seidl also pointed out the scale of California’s cancellations. The 17,000 revoked licenses represent more than 9 percent of the state’s for-hire carrier driver pool. They also make up nearly half of the total CDL growth California has seen since 2019.
That kind of reduction could tighten freight capacity in the state and push outbound rates higher if the cancellations hold up in court.
What Carriers Should Watch For
While political disagreements continue, carriers should focus on the operational and compliance impacts. Federal regulators are clearly shifting toward tighter enforcement of identity, licensing, and safety standards for non-domiciled drivers.
This means carriers may need stronger internal verification processes, especially during hiring. Clear documentation, verification of license status, and up-to-date compliance checks will become more important to avoid penalties or liability claims.
For reference, carriers can review FMCSA licensing rules and enforcement updates on the Federal Motor Carrier Safety Administration website.
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