California moves to cancel 17,000 non-domiciled CDLs after federal audit exposes violations

California is now at the center of a nationwide trucking controversy after an FMCSA audit revealed that the state improperly issued 17,000 non-domiciled Commercial Driver’s Licenses in violation of federal requirements. Following the audit, the U.S. Department of Transportation ordered California to begin canceling these licenses, giving affected drivers 60 days’ notice before their CDL privileges become invalid. Many of these licenses were tied to applicants whose immigration status did not align with federal eligibility rules for non-domiciled CDLs. The federal directive also comes with a warning: Secretary of Transportation Sean Duffy has threatened to withhold $160 million in federal transportation funding if California fails to correct the violations and fully revoke the improperly issued licenses.

According to DOT officials, the mass cancellation is part of a broader nationwide crackdown on fraudulent or improperly issued commercial licenses, but California stands out due to the sheer scale of the violations. The state has already begun notifying the 17,000 affected drivers, many of whom now face sudden employment uncertainty while the courts simultaneously review the federal non-domiciled CDL rule. Industry experts warn the action could tighten driver availability in parts of the state, especially in agriculture, port drayage, and long-haul freight sectors that rely heavily on immigrant labor. While the federal government says the move is necessary to protect highway safety and maintain CDL integrity, critics argue the mass cancellations could further strain an already fragile supply chain.