Minnesota Risks Millions Over CDL Audit

The U.S. Department of Transportation (USDOT) is warning that Minnesota could forfeit more than $30 million in federal highway funding after a federal audit found widespread problems with how the state issued non-domiciled commercial driver’s licenses (CDLs).

In a December 1 letter to Governor Tim Walz, Transportation Secretary Sean Duffy said the Federal Motor Carrier Safety Administration (FMCSA) discovered that roughly one-third of the non-domiciled CDLs it reviewed in Minnesota were granted improperly. According to USDOT, the state issued licenses that extended beyond a driver’s lawful presence, granted CDLs to Mexican nationals who were not present under DACA, issued non-domiciled CDLs to lawful permanent residents who should have received regular CDLs, and in some cases failed to verify lawful presence at all.

USDOT has given Minnesota 30 days to pause new non-domiciled CDL issuances, identify all noncompliant licenses, revoke and reissue them when appropriate, and complete a full internal audit of state procedures.

Federal officials said the funding threat is part of a broader nationwide review. Since mid-2025, FMCSA has also flagged concerns in Pennsylvania and California over similar CDL-issuance issues. Source: https://cdllife.com