North Carolina’s Truck Licensing Mess Could Cost the State $50 Million

State Risks $50 Million in Highway Funds

A federal audit has exposed serious problems in North Carolina’s commercial trucking license program for foreign nationals.

Transportation Secretary Sean Duffy announced on January 8, 2026 that 54% of non-domiciled commercial driver’s licenses reviewed by the Federal Motor Carrier Safety Administration were issued in violation of federal rules.

If North Carolina doesn’t fix the issues and revoke noncompliant licenses, it could lose nearly $50 million in federal highway funding for fiscal year 2027.

54% of Licenses Failed the Audit

The audit sampled 50 CDL records and found 27 with problems—including licenses with expiration dates extending beyond drivers’ legal status, and cases where the state couldn’t prove it verified immigration documents before issuing licenses.

North Carolina currently has 924 active non-domiciled CDLs.

That 54% failure rate triggered an immediate warning from the Department of Transportation.

Licenses Outlasted Legal Status by Years

Auditors discovered licenses that remained valid long after the drivers’ work authorization had expired.

In one case, a driver received a license valid until 2030 even though their legal status in the country was set to expire in 2025. Other licenses were issued to Mexican citizens who were ineligible under federal law.

Some drivers got their CDLs without North Carolina ever verifying their lawful presence in the first place.

924 Problem Licenses Still on the Road

The audit found that 924 non-domiciled commercial driver’s licenses remain unexpired in North Carolina. If the sample is representative, roughly half of those could be invalid.

These drivers are legally allowed to operate 18-wheelers on highways across the country until their licenses are revoked.

The DOT wants them identified and pulled immediately, and any licenses that were issued improperly must be canceled.

A Florida Crash Started the Crackdown

The nationwide audit began after a fatal crash on Florida’s Turnpike in August 2025.

Harjinder Singh, a 28-year-old truck driver from India, attempted an illegal U-turn through an official-use-only access point near Fort Pierce. His semi-truck blocked all lanes of the highway.

A minivan traveling behind him crashed into the trailer, killing all three people inside instantly.

The Driver Failed His Test 10 Times

Florida investigators discovered that Singh had failed his commercial driver’s license knowledge exam 10 times in two months in Washington state before finally passing in 2023. He also failed his air brakes exam twice.

A CDL training school attested that he could speak English, but body camera footage from a New Mexico traffic stop showed him struggling to communicate.

California later issued him a second license without requiring a new driving test.

California Revoked 17,000 Truck Licenses

California was the first state to face consequences from the federal audit. In November 2025, the state admitted that 17,000 non-domiciled CDLs had been issued improperly.

Drivers received 60-day notices that their licenses would be canceled.

The DOT found that more than one in four California licenses reviewed failed to meet federal standards, including many that extended well beyond the expiration of drivers’ work permits.

New York Had the Worst Failure Rate

A December 2025 audit found that 53% of New York’s non-domiciled CDLs were issued illegally, the highest failure rate of any state reviewed.

The state’s computer system automatically issued eight-year licenses regardless of when a driver’s legal status expired. Out of 200 records sampled, 107 violated federal law.

Duffy gave Governor Kathy Hochul 30 days to revoke all illegal licenses or lose $73 million in federal highway funds.

ICE Arrested 101 Truckers in California

In late December 2025, Immigration and Customs Enforcement announced the conclusion of Operation Highway Sentinel. The sweep resulted in 101 arrests of truck drivers on California highways.

Those arrested came from India, Mexico, Colombia, Russia, Venezuela, and several other countries.

ICE said the operation targeted trucking companies suspected of criminal activity and was launched in direct response to fatal crashes caused by improperly licensed drivers.

What Non-Domiciled CDLs Actually Are

A non-domiciled commercial driver’s license is issued to someone who lives outside the United States but is legally authorized to work here temporarily.

States can issue these licenses to foreign nationals who provide valid immigration documents and pass the same tests as American drivers.

The catch is that the license cannot last longer than the driver’s legal stay in the country, and states must verify immigration status through a federal database before issuing one.

North Carolina Says It Is Working on It

The North Carolina Division of Motor Vehicles acknowledged the federal letter and said it has been working with federal partners for several months to address the issues.

A spokesperson said the agency is committed to upholding safety and integrity in its licensing processes. Governor Josh Stein’s office has not commented publicly on the audit findings.

Republican Congressman David Rouzer said he expects the state to move quickly toward compliance.

The Clock Is Ticking for Governor Stein

North Carolina has 30 days to respond to the federal enforcement action.

The state must immediately pause all new non-domiciled CDL issuances, identify every license that violates federal regulations, and revoke all noncompliant credentials.

If the state fails to comply, the DOT will withhold nearly $50 million in federal highway funds starting in fiscal year 2027. In the worst case, the federal government could decertify North Carolina’s entire CDL program.

This article was created with AI assistance and human editing.

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