WASHINGTON — Federal regulators are threatening to withhold up to $151 million in transportation funding earmarked for Pennsylvania if the state fails to correct errors related to the issuance of non-domiciled commercial driver’s licenses.
In a letter sent to Pennsylvania Governor Josh Shapiro and Pennsylvania Department of Transportation (PennDOT) Secretary Michael Carroll on Wednesday, Federal Motor Carrier Safety Administration chief Derek Barrs wrote that a recent audit of the state’s CDL program uncovered eight non-domiciled CDLs issued by Pennsylvania that failed to comply with federal regulations.
“This is an unacceptable deviation from FMCSA’s regulations when issuing credentials to operate commercial motor vehicles,” Barrs stated in the letter.
“PennDOT must take immediate corrective action to audit its non-domiciled CDL program, correct the deficiencies that FMCSA identified … and any deficiencies identified through the State’s internal audit, and void or rescind and reissue all non-domiciled CLPs and CDLs that failed to comply with federal regulations at the time of issuance, renewal, transfer, or upgrade.”
If the state fails to make the changes, Barrs warned that his agency may withhold up to $75.5 million in transportation funding apportioned to Pennsylvania for fiscal year 2027, and up to $151 million in subsequent fiscal years of noncompliance.
“In addition, if FMCSA issues a final determination of substantial noncompliance, the agency may decertify Pennsylvania’s CDL program,” Barrs asserted.
“Decertification … would prohibit the state from issuing, renewing, transferring, or upgrading CLPs and CDLs until such time as FMCSA determines that PennDOT is in substantial compliance” with federal regulations, he noted. Barrs gave the state 30 days to respond.
In announcing FMCSA’s action on Thursday, U.S. Transportation Secretary Sean Duffy cited the recent arrest of a suspected terrorist who has been in the U.S. illegally – and who issued a license in Pennsylvania – to emphasize the importance of non-domiciled CDL audits.
Asked to comment on Barrs’ letter, PennDOT spokesperson Alexis Campbell told FreightWaves in an email that following FMCSA’s interim final rule issued in September severely limiting eligibility for nondomiciled CDLS, “PennDOT immediately paused issuing all non-domiciled commercial driver’s licenses.”
PennDOT, Campbell said, “fully cooperated with FMCSA’s regularly-scheduled audit – and out of 150 cases the federal government audited, FMCSA did not identify a single commercial driver’s license issued to someone who was not eligible.
“All non-citizens who apply for driver’s licenses, including CDLs, must provide PennDOT with proof of identity and must have their legal presence in this country verified through the federal Systematic Alien Verification for Entitlements (SAVE) database – a database maintained by the United States Department of Homeland Security. PennDOT follows the established federal process for confirming that the applicant was lawfully present using the SAVE database in every case.”
Campbell added, “PennDOT’s top priority is safety on our roadways and ensuring only those legally eligible are able to secure a license. The Department is reviewing FMCSA’s letter and will respond within the required timeline.”
