Federal Audit Reveals Over 50% of NY's Non-Domiciled CDLs Illegally Issued, Threatening $73 Million in Funding

Federal Audit Uncovers Widespread CDL Violations in New York

WASHINGTON, D.C. – The New York Department of Motor Vehicles (DMV) has been found to have illegally issued over 50% of its non-domiciled commercial driver's licenses (CDLs), according to a federal audit conducted by the Federal Motor Carrier Safety Administration (FMCSA). The findings, announced on Friday, December 12, 2025, by U.S. Transportation Secretary Sean P. Duffy, indicate a significant breach of federal regulations and have led to a threat of withholding $73 million in federal highway funding from the state.

Secretary Duffy, alongside FMCSA Administrator Derek Barrs, stated that the audit exposed a 'total collapse' in the administration of New York's CDL program. Out of 200 sampled records, a staggering 107 (53%) were issued in violation of federal law.

Systemic Failures Identified

The FMCSA's audit highlighted several critical failures within the New York DMV's practices regarding non-domiciled CDLs:

• The DMV's systems were found to default to issuing 8-year licenses to foreign drivers for non-REAL ID licenses, irrespective of the expiration date of their legal status in the United States.
• New York issued commercial licenses without providing evidence that it had verified the applicants' current lawful presence in the U.S.
• Numerous cases were uncovered where the New York DMV relied upon expired lawful presence documents to issue CDLs, allowing foreign drivers whose lawful status had lapsed to obtain commercial driving privileges.

These systemic issues raise significant safety concerns, with approximately 32,000 New York-issued non-domiciled CDLs currently active nationwide, potentially allowing unverified drivers to operate commercial vehicles across the country.

Federal Demands and State Response

In response to the audit's findings, the U.S. Department of Transportation (USDOT) has issued a strict ultimatum to New York. The state has been given 30 days to implement corrective actions, which include:

• Immediately pausing the issuance of all new, renewed, transferred, or upgraded non-domiciled CDLs or commercial learner's permits.
• Conducting a comprehensive internal audit to identify every non-compliant license.
• Immediately revoking all unexpired, noncompliant licenses and removing unqualified drivers from the road.

Failure to comply with these demands could result in the withholding of $73 million in federal highway funding and potentially lead to the total decertification of New York's CDL program.

Secretary Duffy criticized New York, labeling it the 'worst offender' among states audited so far, and urged Governor Kathy Hochul to immediately revoke the illegally issued licenses. In response, New York DMV spokesperson Walter McClure rejected the allegations, stating that 'Secretary Duffy is lying about New York State once again in a desperate attempt to distract from the failing, chaotic administration he represents,' and affirmed the state's compliance with federal rules.

Broader Implications

This audit is part of a broader nationwide effort by the USDOT to scrutinize the issuance of non-domiciled CDLs, an initiative that gained momentum following a fatal crash in Florida involving a driver not authorized to be in the U.S. Similar issues have been identified in other states, including California, Pennsylvania, and Minnesota, though New York's rate of non-compliance is noted as the most significant to date.