WASHINGTON, D.C. — The U.S. Department of Transportation has warned that Illinois could lose up to $128 million in federal highway funding after a federal audit found widespread problems with the state’s non-domiciled Commercial Driver’s License program.

On February 17, Transportation Secretary Sean P. Duffy announced that a Federal Motor Carrier Safety Administration audit determined nearly one in five non-domiciled CDLs issued by Illinois were granted illegally.

According to FMCSA, the state issued non-domiciled CDLs to drivers whose licenses remained valid long after their lawful presence in the United States had expired, and to drivers without first verifying lawful presence as required under federal regulations.

In a letter sent to Illinois Governor JB Pritzker and Illinois Director of Driver Services Kevin Duesterhaus, FMCSA outlined the findings and gave the state 30 days to come into compliance or face the loss of $128 million in federal transportation funding.

To avoid funding being withheld, USDOT is demanding that Illinois:

• Immediately pause issuance of non-domiciled CDLs.

• Identify all unexpired non-domiciled CDLs that do not comply with FMCSA regulations.

• Revoke and reissue all noncompliant non-domiciled CDLs if they meet federal requirements.

• Conduct a comprehensive internal audit to identify procedural and programming errors, training and quality assurance failures, insufficient policies and practices, and any other issues that led to the issuance of noncompliant licenses.

“I need our state partners to understand that they work for the American people, not illegal immigrants who broke the law illegally entering our country and continue to break it by operating massive big rigs without the proper qualifications,” Secretary Duffy said in a statement.

FMCSA Administrator Derek D. Barrs added that the agency will be “relentless” in enforcing compliance and reinstating what he described as commonsense safety standards.

The Illinois findings come as part of a broader nationwide review launched after President Donald Trump’s executive order on truck driver roadway safety. USDOT said similar compliance failures have been identified in other states, including California, New York, and Pennsylvania.

California has already lost $158 million in federal funding after failing to comply with federal directives related to non-domiciled CDLs.

In addition to the enforcement actions, USDOT highlighted a broader pro-trucker initiative that includes expanded truck parking funding, modernization of driver resources, removal of certain federal mandates, and new guidance strengthening enforcement of English language proficiency requirements for commercial motor vehicle drivers. Under the updated guidance, drivers who fail to meet longstanding English-language standards can be placed out of service.

The situation in Illinois remains ongoing as state officials review the audit findings and determine next steps.

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