California Could Lose the Right to Issue CDL: Federal Authorities Consider 'Nuclear Option'

U.S. federal transportation regulators are seriously considering revoking California's authority to issue commercial driver's licenses (CDL). This unprecedented measure could affect hundreds of thousands of drivers and significantly impact the entire trucking industry in the country.

The escalation was prompted by an investigation by the Federal Motor Carrier Safety Administration (FMCSA), which uncovered systemic violations in the issuance of non-domiciled CDL — licenses for drivers who do not have a permanent residence in the U.S. but work in California.

According to federal regulators, the state has been issuing such licenses in violation of federal requirements for several years, including cases where the CDL's validity exceeded the driver's legal work authorization in the U.S.

As noted by the industry publication FreightWaves, U.S. Secretary of Transportation Sean Duffy called the possible revocation of authority a 'nuclear option,' emphasizing that this scenario 'is on the table' (FreightWaves).

FMCSA claims that California violated long-standing federal norms, not any new or disputed rules. The agency's official statement emphasizes that adherence to uniform CDL standards is a matter of national safety.

Transportation Secretary Sean Duffy stated in public comments that federal funds 'will not be directed to states that ignore safety requirements and allow licenses to be issued to those who are not entitled to them.' These statements were made at the end of 2024 amid a decision to suspend part of California's federal road infrastructure funding (FMCSA).

If FMCSA indeed takes extreme measures, the consequences will be vast:

• the state may temporarily or completely lose the right to issue and renew any CDL, not just non-domiciled CDL;
• other states may refuse to recognize California CDL for interstate transportation;
• CDL schools and carriers will face a halt in hiring new drivers.

Industry estimates suggest there are over 700,000 CDL holders in California — the largest market for commercial drivers in the U.S.

California authorities disagree with the federal center's tough stance. DMV representatives have stated that the state 'acted within the framework of existing legislation,' and the identified issues are administrative in nature. They also emphasize the risk that mass license revocations could unfairly impact drivers who have not committed violations.

Amid the conflict, lawsuits have already been filed by human rights organizations and driver associations. They argue that the responsibility for administrative errors should not be shifted onto industry workers.

Experts warn: if the conflict is not resolved, the U.S. could face serious disruptions in supply chains, especially on the West Coast. Fast Company notes that even the threat of revocation creates uncertainty for carriers and exacerbates the industry's staffing shortage (Fast Company).

The situation surrounding CDL in California has become a rare example of a fierce confrontation between the state and federal regulators in the transportation sector. In the coming months, it will become clear whether the matter will be limited to financial sanctions and procedural adjustments or if FMCSA will indeed apply the most radical pressure tool — revoking the state's right to issue commercial driver's licenses.