New York Called Worst Offender in Illegal CDL Audit, 53% Flagged as Improper

A federal audit found that 53% of New York’s foreign commercial driver’s licenses were issued improperly, prompting threats of major DOT funding cuts.
By Amy Roach | December 12, 2025
Federal transportation officials are zeroing in on New York as the nation’s most severe violator in the improper issuance of commercial driver’s licenses (CDLs). As a result, officials are threatening to withhold up to $73 million in federal highway funding unless the state quickly corrects what the U.S. Department of Transportation (DOT) calls a systemic compliance failure.
According to a Federal Motor Carrier Safety Administration (FMCSA) audit of non-domiciled CDLs, 53% of the 200 sampled licenses (103 licenses) issued by the New York State Department of Motor Vehicles were granted in violation of federal law — the highest failure rate among states reviewed so far.
Transportation Secretary Sean Duffy bluntly labelled New York the “worst offender” during a Friday press briefing. “What New York does is if an applicant comes in and they have a work authorization — for 30 days, 60 days, one year — New York automatically issues them an eight-year commercial driver’s license,” Duffy said during the conference at DOT headquarters in DC. “That’s contrary to the law.”
The FMCSA estimates more than 32,000 non-domiciled CDLs issued by New York are currently active nationwide, raising concerns that unverified or improperly documented drivers are operating commercial vehicles far beyond state borders. Auditors also found that New York’s licensing systems automatically default to long-term credentials without checking lawful presence — a key requirement under federal regulations.
New York has been given 30 days to comply, including revoking improperly issued licenses, pausing new non-domiciled CDL issuance, and conducting a comprehensive internal audit, or face the potential loss of crucial infrastructure funds. The DOT’s heightened scrutiny follows similar actions in California, Pennsylvania, and Minnesota, though New York’s rate of non-compliance stands out as the most significant to date.
State officials have pushed back, asserting that New York’s CDL issuance processes comply with federal regulations and pledging to review the federal agency’s concerns.
