Minnesota has paused issuing non-domiciled commercial driver’s licenses after a federal review found widespread irregularities and warned the state could lose $30.4 million in highway funds if it does not quickly come into compliance. The Minnesota Department of Driver and Vehicle Services (DVS) announced the immediate pause Tuesday night following directives from the Federal Motor Carrier Safety Administration (FMCSA).
Federal findings and funding risk
According to FMCSA, a federal audit determined that roughly one-third of the non-domiciled CDLs reviewed in Minnesota were issued improperly. Findings included licenses granted to drivers whose lawful presence in the United States had expired and licenses with validity periods extending beyond an individual’s authorized stay.
In a letter to Governor Tim Walz and Department of Public Safety Commissioner Bob Jacobson, federal transportation officials stated that failure to resolve the irregularities could jeopardize the state’s Highway Trust Fund apportionment. Minnesota was given 30 days to come into compliance and to address the illegal issuance of non-domiciled CDLs.
State response and required actions
DVS said it has halted issuance of non-domiciled CDLs while the state works with FMCSA to address the audit’s findings. FMCSA has directed Minnesota to take the following steps:
- Pause issuance of non-domiciled CDLs and commercial learner’s permits (CLPs)
- Identify any non-domiciled CDLs and CLPs that do not comply with federal regulations
- Revoke non-compliant credentials
- Conduct a comprehensive audit of related licensing processes
FMCSA also advised that drivers who were legitimately issued a non-domiciled CDL but will not qualify for renewal should receive advance notice so they and their employers can prepare for the change.
What is a non-domiciled CDL?
A non-domiciled CDL is a commercial driver’s license issued to an applicant who is not domiciled in a U.S. state but is legally present and authorized to operate a commercial motor vehicle in the United States. Federal rules also govern non-domiciled commercial learner’s permits and require verification of lawful presence at issuance and renewal.
Broader regulatory context
The pause in Minnesota comes amid heightened federal scrutiny of how states issue and renew non-domiciled CDLs and CLPs. FMCSA has issued an interim final rule that tightens those processes nationwide. By FMCSA’s own calculations, approximately 194,000 drivers could lose commercial license eligibility within two years under the revised requirements.
Minnesota officials have not announced a timeline for resuming issuance of non-domiciled CDLs. The state’s compliance plan is expected to include revocations of non-compliant licenses and updated verification procedures to meet federal standards.