Lawmakers demand USDOT release $160 million withheld from California over delayed cancellation of thousands of CDLs
A group of California lawmakers called on the U.S. Department of Transportation (USDOT) to release millions in transportation funding withheld from the state in a clash over non-domiciled commercial driver’s licenses (CDLs).
In a June 11 letter addressed to Transportation Secretary Sean Duffy, U.S. Senator Adam Schiff and other lawmakers called on USDOT to “restore $160 million” in transportation funding to California.
Lawmakers also called on USDOT to rescind a February 2026 Final Rule restricting the issuance of CDLs to certain visa holders.
Why Did California Lose $160 Million?
Early this year, USDOT announced that California would lose nearly $160 million in transportation funding for failure to cancel approximately 17,000 non-domiciled CDLs by the given deadline of January 5, 2026.
California cancelled approximately 13,000 non-domiciled CDLs in March 2026, after the deadline had passed.
USDOT pointed to a nationwide Federal Motor Carrier Safety Administration (FMCSA) audit that showed “a systemic collapse of California’s non-domiciled CDL program, which allowed the state to illegally issue licenses with expiration dates extending years beyond a driver’s lawful presence and to grant CDLs to individuals who were ineligible to hold them.”
California Lawmakers Say Withholding Funds Undermines Road Safety, Supply Chain
Schiff and the other lawmakers argue that the FMCSA Final Rule restricting non-domiciled CDLs to those who possess a H-2A, H-2B or E-2 visa disqualifies hundreds of thousands of drivers, “potentially creating a driver shortage that could lead to a supply chain crisis.”
“The agency itself has acknowledged there is insufficient evidence that broadly restricting this group of drivers improves safety. Implementing a rule that effectively pauses or severely restricts non-domiciled CDL programs nationwide and withholding $160 million in FY2027 National Highway Performance Program funds from California – infrastructure dollars meant to maintain roads all Americans use – are punitive actions that undermine road safety and the integrity of our national supply chain and workforce,” the letter reads.
“We urge the Department to immediately restore the federal funding owed to California – the state with the largest net contribution gap of any state, paying $275.6 billion more to the federal government than it received in 2024; rescind its Final Rule; and reinstate non-domiciled CDL programs across the country. We stand ready to work with the Department on data-driven reforms and safety audits to ensure consistent, nationwide standards without targeting an essential workforce,” Schiff and the other lawmakers said.