Changes to CDLs, Trucker Accreditation

Action: On December 1, the Administration revoked the certifications for about 3,000 commercial driver’s license (CDL) training centers and issued warnings to another 4,500 for alleged violations of Federal safety standards. The centers have 30 days to challenge the removal.

Trusted Insights for What's Ahead^®

• The Administration has increased scrutiny of the trucking industry following accidents involving non-US nationals, including some working in the US illegally. In response, it has taken a variety of steps targeting both CDL training centers and drivers. It has also threatened to withhold Federal funding from states it considers to have lax CDL issuance and enforcement programs.
• Earlier this year, the Department of Transportation (DOT) initiated a review of the US’s 16,000 CDL training centers following concerns that many centers were engaging in “illegal and reckless practices” and certifying “poorly trained drivers.”
• In September, DOT issued an emergency rule blocking states from issuing CDLs to non-citizens, including refugees and asylees, unless they hold employment-based visas. DOT has also taken a series of steps to enforce English Language Proficiency (ELP) requirements for CDL-holders.
• In addition, the State Department announced a pause on issuing certain visas (H-2B, E-2, and EB-3) for commercial truck drivers. Notably this does not affect drivers transporting goods between Mexico or Canada and the US as they are typically admitted under B-1 visas.
• It’s unclear how many drivers may be affected by the Administration’s actions. About 18% of the 3.6 million US truck drivers are foreign born, and, according to Federal data, trucks crossed the US-Mexico border 5.9 million times last year; some share of the drivers may be impacted by ELP enforcement.
• One analysis estimated that 200,000 individuals would be affected by restrictions on issuing CDLs to non-citizens. Another analysis estimated that the combination of restrictions on CDL issuance, ELP requirements, and immigration enforcement could impact 800,000 drivers.
• What this means for business: Some analysts note the crackdown could contribute to driver shortages, which could result in increased shipping costs and supply chain issues for businesses. However, a trucking trade association expressed support for the increased oversight and enforcement citing concerns about safety and illegal competition from foreign carriers, including cabotage (foreign trucks running loads between two US points), which is not permitted under USMCA).  Given the importance of cross-border land trade, concerned business should closely track developments related to the possible renewal or renegotiation of USMCA next year.