Regulators on both sides of the border are tightening oversight of trucking, with the U.S. Federal Motor Carrier Safety Administration (FMCSA) pressing California over non-domiciled Commercial Driver’s Licenses (CDLs) and Canadian industry leaders debating tax reporting and border screening priorities.
FMCSA targets California over non-domiciled CDLs
California has said it will revoke 17,000 CDLs as part of a federal review into how states issue licenses to non-domiciled drivers. Officials said California is the only state the administration has acted against so far because it was the first to complete an audit. A recent government shutdown delayed reviews in other states.
The FMCSA, in a letter to the California Department of Motor Vehicles, outlined actions the state must take to correct what the agency determined were problematic processes and systems related to non-domiciled CDL issuance.
Pointing to recent high-profile crashes and the audit findings, the U.S. Department of Transportation (DOT) described the current system as “broken” and “a threat to public safety,” saying many drivers with non-domiciled CDLs are not qualified or are not legally in the United States.
Enforcement findings and industry reaction
Texas officials reported that nearly one in three truck drivers pulled over during a recent operation were in the country illegally, and many held CDLs issued in California. State troopers worked with federal immigration authorities during the enforcement effort.
Industry feedback has been mixed. “Secretary Duffy and the Department of Transportation have taken important steps to immediately make America’s roads safer by cracking down on non-domiciled CDLs and ensuring that anyone operating an 80,000-pound commercial vehicle can read road signs,” said George O’Connor, speaking for the Owner-Operator Independent Drivers Association.
Canada debates tax compliance and border screening
In Canada, a renewed push to enforce contractor tax reporting in trucking is drawing industry attention. “A lot has changed since the moratorium was introduced in 2011, and the idea that issuing T4As creates a mountain of red tape for small businesses is simply not true in 2025,” said Stephen Laskowski, president and CEO of the Canadian Trucking Alliance (CTA), responding to federal budget measures.
At the same time, some industry voices warn that a broad crackdown on tax noncompliance could exacerbate supply chain pressures if not implemented carefully.
Border operations are also under scrutiny. Witnesses told a parliamentary committee that the Canada Border Services Agency (CBSA) has relied too heavily on automation at ports of entry, reducing human contact. “We need to get our focus back on interdiction, it’s been entirely about facilitation for far too long,” one witness, Weber, said. At issue is CBSA’s One Touch intake system, which critics say prioritizes speed over screening.
Technology and safety backdrop
These developments come as new driver-assistance technologies promise to make truck driving safer and less demanding. Regulators and industry groups continue to balance adoption of automation with the need for rigorous licensing, verification, and border security processes that support highway safety and supply chain reliability.