Federal Audit Finds Illinois Issued Nearly 20% of Non-Domiciled CDLs Improperly

By SafetyLane Editorial | February 2026

SPRINGFIELD, IL — A federal audit conducted by the Federal Motor Carrier Safety Administration (FMCSA) has found that nearly 20 percent of Illinois’ non-domiciled Commercial Driver’s Licenses (CDLs) were issued in violation of federal requirements. The findings have triggered immediate compliance directives and placed up to $128 million in federal highway funding at risk for the state.

The review, announced by U.S. Transportation Secretary Sean P. Duffy, is part of a nationwide audit launched in mid-2025 to evaluate how states are issuing non-domiciled CDLs and whether they are complying with federal eligibility standards.

What the Audit Found

According to federal officials, the Illinois audit identified two primary compliance failures:

• Non-domiciled CDLs that remained valid after the expiration of the driver’s lawful presence in the United States.

• Licenses that were issued without proper verification of lawful presence prior to approval.

Federal regulators determined that approximately one out of every five non-domiciled CDLs reviewed did not meet federal regulatory requirements.

While individual driver identities were not disclosed, the findings point to systemic procedural breakdowns within the state’s licensing process rather than isolated clerical errors.

Immediate Federal Orders

FMCSA has given Illinois 30 days to correct the deficiencies. The state has been directed to:

• Pause issuance of additional non-domiciled CDLs until compliance is assured.

• Identify all currently active non-compliant licenses.

• Revoke or reissue affected CDLs in accordance with federal regulations.

• Conduct a comprehensive internal review of policies, verification systems, and staff training procedures.

Failure to meet these requirements could result in the withholding of federal transportation funds — estimated at $128 million — that support highway construction, maintenance, and safety programs throughout Illinois.

Understanding Non-Domiciled CDLs

A non-domiciled CDL is issued to individuals who are legally present in the United States but do not permanently reside in the issuing state. These credentials are typically granted to foreign nationals with authorized employment status.

Federal regulations require strict verification of:

• Lawful presence in the United States

• Valid work authorization

• Identity documentation

• Alignment of CDL validity with immigration status expiration dates

The CDL expiration date must not exceed the duration of lawful presence. If lawful status expires, the CDL must be invalidated or reissued accordingly.

Nationwide Enforcement Context

Illinois is not alone in facing federal scrutiny. The FMCSA’s broader audit has examined non-domiciled CDL issuance practices in multiple states across the country. Several jurisdictions have received warning letters citing similar compliance deficiencies.

The audit follows growing concerns within the Department of Transportation regarding inconsistencies in state verification processes and potential safety implications tied to improperly issued credentials.

In response, FMCSA finalized new regulatory changes that further tighten eligibility requirements for non-domiciled CDLs. The updated rules, effective March 2026, limit eligibility to certain verified employment-based immigration classifications and reinforce documentation standards for State Driver Licensing Agencies (SDLAs).

Safety and Public Policy Implications

Federal officials have emphasized that the audit is intended to preserve roadway safety and maintain the integrity of the commercial licensing system. The Department of Transportation has stated that inconsistent issuance practices undermine uniform national CDL standards.

Recent enforcement communications also referenced fatal crash data involving drivers whose licensing eligibility could not be fully validated under prior state procedures. While the majority of commercial drivers operate safely and professionally, federal regulators argue that uniform verification standards are essential to protect the motoring public.

Illinois’ Response

Illinois officials have disputed the federal characterization of the findings, stating that the state utilized federal verification systems to screen applicants and that compliance standards have evolved since portions of the audit period.

State representatives have expressed concern that abrupt enforcement actions could disrupt the trucking workforce and contribute to supply chain instability. Industry associations within Illinois have echoed those concerns, noting the economic importance of commercial drivers to freight movement, agriculture, and regional commerce.

Nevertheless, federal regulators have made clear that corrective action is mandatory and time-sensitive.

What This Means for Carriers and Safety Directors

For motor carriers, compliance officers, and safety professionals, the Illinois audit sends a clear message:

1. Verify Driver Documentation Ensure all non-domiciled CDL holders employed by your company have valid, unexpired work authorization aligned with their CDL validity period.

2. Review Driver Qualification Files (DQFs) Confirm that lawful presence documentation is properly recorded and periodically re-verified.

3. Monitor State Issuance Policies Stay informed about evolving state and federal CDL issuance rules, particularly as FMCSA continues nationwide reviews.

4. Prepare for Enhanced Scrutiny Federal oversight of licensing practices is increasing, and carriers may see tighter verification expectations during audits and compliance reviews.

   
   

The Bigger Picture

The Illinois findings mark one of the most significant federal compliance interventions involving CDL issuance in recent years. With the implementation of stricter federal standards and ongoing audits across multiple states, the commercial transportation industry is entering a new phase of credential oversight.

The coming months will determine whether Illinois can rapidly align with federal requirements or face financial penalties. Regardless of the outcome, the message from Washington is clear: uniform compliance in CDL issuance is no longer optional — it is being actively enforced.

SafetyLane Magazine will continue monitoring developments as additional audit findings and federal enforcement actions unfold nationwide.