North Carolina Faces $50M Federal Funding Loss Due to Immigrant Trucker License Issues

North Carolina faces the potential loss of nearly $50 million in federal funding if it fails to revoke commercial driver’s licenses from immigrants deemed unqualified. This warning comes from the U.S. Transportation Department following an audit that revealed significant issues with the state’s licensing practices.

North Carolina is now the ninth state to be scrutinized since Transportation Secretary Sean Duffy initiated a nationwide review last year. The goal is to ensure that only qualified drivers are issued licenses for operating semitrailer trucks or buses.

The urgency of this issue was highlighted by a tragic incident in Florida, where a truck driver unauthorized to be in the U.S. made an illegal U-turn, resulting in a crash that claimed three lives in August. This incident has intensified scrutiny on licensing practices across various states.

During the audit, the Federal Motor Carrier Safety Administration examined 50 commercial driver’s licenses issued to immigrants in North Carolina and found problems with over half of them. This alarming discovery has led to the threat of withholding federal funds unless the state rectifies its licensing program. Currently, records indicate that 924 such licenses remain valid in North Carolina.

“North Carolina’s failure to follow the rules isn’t just shameful — it’s dangerous,” Duffy stated, emphasizing the critical nature of compliance with licensing regulations.

Marty Homan, a spokesman for the North Carolina DMV, assured that the state is actively working to address these concerns and is committed to maintaining safety and integrity in its licensing processes.

In a related context, Duffy has withheld nearly $200 million from California due to similar concerns regarding its licensing practices. California has faced criticism for delaying the revocation of over 17,000 invalid licenses and not enforcing English proficiency requirements for truck drivers.

Additionally, Duffy has threatened to withdraw millions in federal funding from states like Pennsylvania, Minnesota, New York, Texas, South Dakota, Colorado, and Washington after audits revealed significant licensing issues.

In a proactive measure, Tennessee announced its own review of commercial driver’s licenses, notifying approximately 8,800 of its 150,000 license holders that they must provide proof of citizenship or a valid visa to retain their licenses. Russell Shoup, assistant commissioner of Tennessee’s Driver Services Division, emphasized the state’s commitment to ensuring compliance with current state and federal standards.

The federal crackdown on commercial driver’s licensing has garnered support from trucking groups, who argue that unqualified drivers, including those who cannot speak English, have been allowed to operate large trucks. They have praised the Transportation Department’s efforts to target questionable commercial driver’s license schools.

However, immigrant advocacy groups argue that some drivers are being unfairly targeted. The focus has been particularly intense on Sikh truckers, as both the driver involved in the Florida crash and another fatal incident in California were Sikhs. Consequently, the Sikh Coalition and the Asian Law Caucus have filed a class-action lawsuit against California regarding its plans to revoke thousands of licenses.

While immigrants make up about 20% of all truck drivers, the non-domiciled licenses they can obtain represent only about 5% of all commercial driver’s licenses, totaling around 200,000 drivers. The Transportation Department has also proposed new restrictions that would significantly limit the eligibility of noncitizens for licenses, although a court has temporarily halted these new rules.

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Associated Press writer Gary Robertson from Raleigh, North Carolina, contributed to this report.

Copyright 2026 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Topics
North Carolina
Trucking

North Carolina faces the potential loss of nearly $50 million in federal funding if it fails to revoke commercial driver’s licenses from immigrants deemed unqualified. This warning comes from the U.S. Transportation Department following an audit that revealed significant issues with the state’s licensing practices.

North Carolina is now the ninth state to be scrutinized since Transportation Secretary Sean Duffy initiated a nationwide review last year. The goal is to ensure that only qualified drivers are issued licenses for operating semitrailer trucks or buses.

The urgency of this issue was highlighted by a tragic incident in Florida, where a truck driver unauthorized to be in the U.S. made an illegal U-turn, resulting in a crash that claimed three lives in August. This incident has intensified scrutiny on licensing practices across various states.

During the audit, the Federal Motor Carrier Safety Administration examined 50 commercial driver’s licenses issued to immigrants in North Carolina and found problems with over half of them. This alarming discovery has led to the threat of withholding federal funds unless the state rectifies its licensing program. Currently, records indicate that 924 such licenses remain valid in North Carolina.

“North Carolina’s failure to follow the rules isn’t just shameful — it’s dangerous,” Duffy stated, emphasizing the critical nature of compliance with licensing regulations.

Marty Homan, a spokesman for the North Carolina DMV, assured that the state is actively working to address these concerns and is committed to maintaining safety and integrity in its licensing processes.

In a related context, Duffy has withheld nearly $200 million from California due to similar concerns regarding its licensing practices. California has faced criticism for delaying the revocation of over 17,000 invalid licenses and not enforcing English proficiency requirements for truck drivers.

Additionally, Duffy has threatened to withdraw millions in federal funding from states like Pennsylvania, Minnesota, New York, Texas, South Dakota, Colorado, and Washington after audits revealed significant licensing issues.

In a proactive measure, Tennessee announced its own review of commercial driver’s licenses, notifying approximately 8,800 of its 150,000 license holders that they must provide proof of citizenship or a valid visa to retain their licenses. Russell Shoup, assistant commissioner of Tennessee’s Driver Services Division, emphasized the state’s commitment to ensuring compliance with current state and federal standards.

The federal crackdown on commercial driver’s licensing has garnered support from trucking groups, who argue that unqualified drivers, including those who cannot speak English, have been allowed to operate large trucks. They have praised the Transportation Department’s efforts to target questionable commercial driver’s license schools.

However, immigrant advocacy groups argue that some drivers are being unfairly targeted. The focus has been particularly intense on Sikh truckers, as both the driver involved in the Florida crash and another fatal incident in California were Sikhs. Consequently, the Sikh Coalition and the Asian Law Caucus have filed a class-action lawsuit against California regarding its plans to revoke thousands of licenses.

While immigrants make up about 20% of all truck drivers, the non-domiciled licenses they can obtain represent only about 5% of all commercial driver’s licenses, totaling around 200,000 drivers. The Transportation Department has also proposed new restrictions that would significantly limit the eligibility of noncitizens for licenses, although a court has temporarily halted these new rules.

___

Associated Press writer Gary Robertson from Raleigh, North Carolina, contributed to this report.

Copyright 2026 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Topics
North Carolina
Trucking