Dive Brief:
- Illinois is at risk of losing $128.6 million in federal highway funds over alleged noncompliance in its issuance of non-domiciled commercial driver licenses, the Department of Transportation said Tuesday.
- The potential penalty comes after the Federal Motor Carrier Safety Administration audited 150 of 10,088 non-domiciled CDLs issued by Illinois' Secretary of State, and the agency found 29 failed to comply with federal requirements.
- The state now has 30 days to respond and avoid a penalty, either by contesting the claim or outlining plans to implement the FMCSA's recommended actions, which include steps like pausing issuance of new non-domiciled CDLs, revoking non-compliant licenses, or conducting its own internal audit of processes that led to non-compliance.
Dive Insight:
The Illinois Secretary of State’s Office responded to the administration’s threat by saying in a press release “its CDL issuance policies and practices are substantially compliant with applicable FMCSA requirements” and state practices would “not justify cutting federal highway funding.”
The state agency intends to review the FMCSA’s findings, which were outlined in a letter to Illinois Gov. JB Pritzker and Illinois Director of Driver Services Kevin Duesterhaus. In the letter, FMCSA concluded the state improperly issued some non-domiciled CDLs with validity periods that extended beyond when the recipients' lawful presence in the U.S. expired, and that some drivers were issued licenses without Illinois verifying an individual’s lawful presence in the U.S.
The Illinois Secretary of State’s Office noted that Illinois — along with most other states — had already paused issuing and renewing non-domiciled CDLs last year after the FMCSA issued an interim final rule that updated its non-domicile CDL standards.
Illinois is among many states facing federal scrutiny over management of non-domiciled CDL programs. California and Pennsylvania also have been threatened with possible funding cuts over non-compliance issues.
"Secretary Duffy and I will be relentless in our agenda to reinstate commonsense safety standards that protect our truckers and American families,” FMCSA Administrator Derek Barrs said in the DOT's press release.
However, others in the trucking industry have expressed concern that actions to limit issuance of non-domicile CDLs could have negative ripple effects on the industry.
Matt Hart, executive director of the Illinois Trucking Association, said in a statement that the pause on non-domicile CDLs has added uncertainty to an industry "that is already stretched thin."
"For many drivers, especially owner-operators, their CDL isn't just a credential — it's their livelihood," Hart said.
