Trucking Industry

Court Denies Pause on Non-Domiciled CDL Rule; Trucking Industry Faces Driver Shortages

WASHINGTON — A federal court has refused to block a new rule limiting which foreign drivers can hold a Commercial Driver’s License (CDL), keeping the regulation in effect while a larger legal battle continues. The decision by the U.S. Court of Appeals for the D.C. Circuit means thousands of drivers could eventually lose their eligibility to drive in the United States.

Two Lawsuits Seek a Stay

Two separate groups had asked the court to pause the rule:

  • King County, Washington (home to Seattle) filed one request in March.
  • Three other plaintiffs, including the American Federation of State, County & Municipal Employees (AFSCME), the American Federation of Teachers, and the Public Citizen Litigation Group, filed a second motion in February. Truck driver Jorge Rivera Lujan is the primary named defendant in that case.

A three-judge panel denied both requests on Tuesday. In a footnote, one judge, Robert Wilkins, said he would have granted the stay.

Court Timeline and Amicus Participants

The combined cases will continue over the summer:

  • Petitioners’ briefs: June 15
  • FMCSA’s briefs: July 15
  • Final briefs: August 5
  • Oral arguments: September 2026

The court also allowed additional parties to join as amicus curiae, including the Teamsters and the Sikh Coalition.

What the Rule Does

FMCSA issued an interim rule in October 2025, followed by a final rule in February 2026, effective March 16. The rule allows non-domiciled CDLs only for H-2A, H-2B, and E-2 visa holders.

Groups excluded include DACA recipients, refugees, asylum seekers, asylees, and individuals with Temporary Protected Status (TPS).

The Lujan plaintiffs argued the rule is “arbitrary and capricious,” claiming FMCSA decided on the outcome first and then looked for reasons to support it.

Trucking Industry

Safety Justification

The FMCSA says the rule is needed for public safety. State agencies have struggled to verify the driving records of non-domiciled applicants, leading to potential “unchecked” driving histories.

The agency identified 17 fatal crashes in 2025 involving non-domiciled drivers who would not have qualified under the new rule. These crashes caused 30 deaths and multiple injuries. FMCSA says drivers with approved visas undergo enhanced consular screening before entering the U.S., which the agency says reduces risk.

Supply Chain Impact

The trucking industry is already feeling the pressure. In California, 13,000 licenses were canceled in a single day in March due to federal compliance demands.

The driver shortage is causing:

  • Higher freight costs as fewer trucks are available.
  • Insurance challenges for carriers employing non-domiciled drivers.
  • Service delays, especially for refrigerated shipments and port operations.

The Sikh community is particularly affected, as commercial trucking is a major profession for many members.

Industry estimates suggest 194,000 to 200,000 drivers nationwide could be affected by the new rule once licenses expire and renewals are restricted.

What Carriers Should Do

For now, existing non-domiciled CDLs remain valid until their expiration date. Once expired, drivers will need one of the three approved visas to renew.

FMCSA recommends carriers audit their driver rosters now and prepare for potential shortages in the coming months.

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