Emergency Federal Regulation Imposes Strict Citizenship and Lawful Permanent Resident Requirements for Commercial Drivers' Licenses with Stark Impacts to Public Transit Agencies

10.17.2025

On Friday, September 26, 2025, the United States Department of Transportation (“DOT”), through the Federal Motor Carrier Safety Administration (“FMCSA”), announced an emergency interim final rule titled “Restoring Integrity to the Issuance of Non-Domiciled Commercial Driver’s Licenses” aimed at increased federal oversight of states’ issuance of non-domiciled commercial learner’s permits (“CLPs”) and commercial driver's licenses (“CDLs”). This new rule amends Parts 383 and 384 of Title 49 of the Code of Federal Regulations (“CFR”) to significantly limit the eligibility criteria for individuals seeking CLPS and CDLS who are not domiciled in the United States. This emergency rule was published on Monday, September 29, with the regulations taking immediate effect. However, this interim rule is open for public participation and comments until November 28, 2025.

Statutory Background and New Requirements

Part 383 of Title 49 establishes federal standards for the issuance, testing, and disqualification of CDLs. Part 384 outlines state-level compliance requirements, establishes procedures or compliance determinations, and specifies consequences for state non-compliance.

Under the emergency interim rule, only individuals in select employment-based nonimmigrant categories —specifically H-2A (agricultural workers), H-2B (non-agricultural workers), and E-2 (treaty investors) —as well as those domiciled in certain U.S. territories or states with decertified CDL programs, remain eligible for CPLs and CDLs. Those in humanitarian or deferred status categories, such as asylum seekers, refugees, and DACA recipients, are no longer eligible for CPLs or CDLs to operate commercial vehicles. Non-domiciled individuals (i.e. excluding citizens and lawful permanent residents) must now present both an unexpired foreign passport and a valid Form I-94/I-94A showing qualifying immigration status at every issuance, renewal, upgrade, or transfer.

State licensing agencies (“SDLAs”), such as the California Department of Motor Vehicles (“DMV”), are now also required to verify immigration status through the SAVE system, retain application documents for at least two years, and ensure that CDL expiration dates align with immigration documentation or are limited to one year. All renewals must now also be completed in person, and SDLAs must downgrade licenses if the holder becomes ineligible.[1]

California Specific Compliance

DOT Secretary Sean P. Duffy announced direct enforcement against the state of California, namely, setting a 30-day deadline to come into compliance with the new regulations or risk forfeiture of federal highway funds. Secretary Duffy also ordered California to pause “issuance of non-domiciled CDLs, to identify all unexpired CDLs issued to non-domiciled individuals, and revoke and reissue all non-compliant CDLs until non-domiciled individuals can establish compliance.[2] As a result of these directives, the DMV has “paused issuing non-domiciled CLPs and CDLs, including originals, renewals, duplicates, corrections, upgrades, transfers, and pending transactions, to applicants who have limited legal presence in the United States.[3]”

Potential Impacts to Public Transit Agencies

Public transit agencies should conduct an audit of their employees to identify who must operate vehicles requiring a Commercial Driver’s License as part of their regular duties. This may include motor coach operators, paratransit drivers, and other personnel who fill safety-sensitive roles which are essential to maintaining daily transit services for communities. An employee’s ineligibility may not be immediately apparent and may only surface during renewal or upon state notification of ineligibility due to ongoing compliance audits by the USDOT or DMV. Still, the interim rule is clear: CDL holders who do not meet the new eligibility requirements should no longer operate a commercial vehicle.

These new requirements create liability risks if non-domiciled drivers operate transit vehicles while their CDL eligibility is in question. In the event of an accident, a plaintiff's attorney may argue that the agency failed to ensure proper licensure, even after being given advanced notice of eligibility changes. Future employment decisions based on immigration status must also be handled with care. While compliance with federal eligibility standards is mandatory, agencies must avoid actions that could be construed as discriminatory or inconsistent with employment law. Any employment action taken in response to the rule should be based on documented regulatory requirements and implemented consistently across the workforce.

Unionized employers may also face added challenges under the interim rule. While labor laws allow employers to make decisions to implement legally-required changes, employers are still required to meet and confer with their labor partners regarding the reasonably foreseeable impact(s) of a legal requirement. Further, public employers must also comply with employee due process obligations and should seek advice of counsel prior to separation of any employees due to the emergency interim rule.

Conclusion

The FMCSA’s emergency interim final rule represents a significant shift in federal oversight of the issuance of CDLs and CPLs. Employers should act swiftly to ensure compliance, minimize operational disruptions, and avoid legal exposure and potential action to deny federal funding.

We will continue to monitor any changes and provide updates to this Alert. In the meantime, please feel free to contact the Authors of this Alert or your regular AALRR counsel

[1] 90 Fed. Reg. 46510-46511.

[2] See Secretary Duffy’s Press release: https://www.transportation.gov/briefing-room/trumps-transportation-secretary-sean-p-duffy-takes-emergency-action-protect-americas

[3] See: https://www.dmv.ca.gov/portal/driver-licenses-identification-cards/commercial-driver-licenses-cdl/