The Federal Motor Carrier Safety Administration’s review of Illinois’ non-domiciled commercial driver’s licenses program found nearly one in five of these licenses to have been issued illegally, according to a DOT news release.

Illinois has 30 days to come into compliance and revoke the illegally issued licenses or risk losing $128 million in federal highway funding.

Non-domiciled CDLs are issued to people who are legally allowed to work in the U.S. but do not permanently live in the state issuing the license. This is often foreign nationals working under temporary U.S. work authorization. However, FMCSA found problems with states issuing these licenses improperly and contends it leads to unsafe drivers on the road.

The FMCSA moved swiftly to severely limit who is eligible for non-domiciled CDLs, issuing a final rule earlier this month. The rule is effective March 16.

In issuing that rule, the agency said FMCSA identified 17 fatal crashes in 2025 caused by actions of non-domiciled CDL holders whose fitness could not be ensured and would be ineligible under this new rule.

Illinois is the latest in a long string of states that the agency has targeted in its non-domiciled CDL investigation. In June, the Department of Transportation announced a nationwide audit of states that issue non-domiciled CDLs. FMCSA said it has found that more than 30 states have issued tens of thousands of non-domiciled CDLs contrary to federal regulations.

FMCSA Outlines Illinois Problems with Non-Domiciled CDLs

In a letter sent to Illinois Gov. J.B. Pritzker and Illinois Director of Driver Services Kevin Duesterhaus, FMCSA outlined the audit’s findings of how the state illegally issued non-domiciled CDLs to: 

• Drivers whose licenses were valid long after their lawful presence in the U.S. expired. 
• Drivers without Illinois first verifying the individual’s lawful presence in the U.S. 

USDOT is now demanding that Illinois take the following corrective measures to avoid funding being withheld: 

• Immediately pause issuance of non-domiciled CDLs. 
• Identify all unexpired non-domiciled CDLs that fail to comply with FMCSA regulations.
• Revoke and reissue all noncompliant non-domiciled CDLs if they comply with the federal requirements.
• Conduct a comprehensive internal audit to identify all procedural and programming errors, training and quality assurance problems, insufficient policies and practices, and other issues that have resulted in the issuance of non-domiciled CDLs that did not meet federal rules.   

Illinois Responds to Non-Domiciled CDL Investigation

Illinois Secretary of State Alexi Giannoulias issued a statement condemning the Trump administration’s assertions on the state’s past handling of non-domiciled CDLs.

According to federal guidelines, non-domiciled residents seeking a CDL must show proof of legal status in the U.S., it explained, such as an Employment Authorization Document (EAD) or an I-94 with a valid foreign passport.

"In its letter, FMCSA fails to recognize an extension granted to EAD holders," according to the secretary of state's statement. The federal government’s policy on processing backlogged EAD renewals called for extending the validity of existing EADs, it said, and that policy existed until October 31, 2025.

Illinois had already adopted the use of the SAVE system (Systematic Alien Verification for Entitlements) to verify lawful immigration status for all non-domiciled CDL applicants before the FMCSA’s interim rule was announced last year.

However, as the Trump administration has expanded the use of the SAVE system, its shortcomings have become apparent.

Employers whose workers were swept up in immigration raids have said the SAVE system indicated that their workers were eligible for employment.

And conversely, as the administration looks to use the system to prevent non-citizen voting, agencies have found numerous cases of it inaccurately flagging people as non-citizens.

More Uncertainty for Trucking Industry

The secretary of state’s office has also adopted additional safeguards to retain and validate application documents, it said.

"The secretary of state’s office believes its CDL issuance policies and practices are substantially compliant with applicable FMCSA requirements and will not justify cutting federal highway funding," the statement said. The office intends to conduct a review of the FMCSA findings.

“Commercial driver’s licenses are the backbone of Illinois’ trucking industry and the supply chain that keeps our state moving, including the vital transportation network that supports our agriculture community,” said Matt Hart, executive director of the Illinois Trucking Association.

“The pause on the non-domicile CDL creates uncertainty for the industry that is already stretched thin and puts many in limbo. For many drivers, especially owner-operators, their CDL isn't just a credential – it's their livelihood."