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Transportation Department Threatens $128 Million Cut to Illinois Over Illegally Issued Non‑Domiciled CDLs

Federal officials cite safety failures after an audit found nearly one in five sampled licenses were improper.

Overview

  • FMCSA gave the state 30 days to show corrective action, including pausing new issuances and voiding noncompliant licenses, or to prove the findings are wrong.
  • Auditors found 29 of 150 sampled non‑domiciled CDLs were issued illegally, including licenses extending beyond holders’ lawful presence or without verified lawful status.
  • Illinois’ Secretary of State says non‑domiciled CDL issuance is already paused and maintains the program is substantially compliant, arguing auditors overlooked work‑authorization extensions.
  • The letter warns $128 million in highway funds, including portions of the National Highway Performance Program and Surface Transportation Block Grants, could be withheld and the CDL program could be decertified.
  • The action comes as federal agencies have recently frozen or rescinded other Illinois transportation funds, including nearly $2 billion for the CTA Red Line Extension, a $100 million EV charger grant, and a separate $3.6 million CDL‑related grant.