DOT Strips California Of $160 Million Over Foreign Truckers

By John Gallagher of FreightWaves

A showdown between the U.S. Department of Transportation and the State of California reached a breaking point on Wednesday after Transportation Secretary Sean Duffy announced the Federal Motor Carrier Safety Administration will withhold approximately $160 million in safety program money from the state.

The move follows California’s failure to meet a January 5 deadline to cancel more than 17,000 commercial truck driver’s licenses that Duffy asserts were unlawfully issued by the state to foreign truckers.

The California Department of Motor Vehicles announced in late December that it would delay the cancellation until March 6, but FMCSA did not agree to the extension.

“It’s reckoning day for [Governor] Gavin Newsom and California,” Duffy stated in a press release announcing a final determination letter that was sent to Newsom and the DMV.

“Our demands were simple: follow the rules, revoke the unlawfully-issued licenses to dangerous foreign drivers, and fix the system so this never happens again. Gavin Newsom has failed to do so – putting the needs of illegal immigrants over the safety of the American people.

“While Gavin may not care about protecting you and your family on our roads, the Trump Administration does. We’re pulling this funding to ensure federal tax dollars don’t fund this charade.”

A nationwide audit issued by FMCSA last summer of non-domiciled CDLs – which allow individuals who are not U.S. citizens or permanent residents to obtain commercial licenses – uncovered what government officials called a “systemic collapse” in California, where licenses were allegedly issued with expiration dates years beyond a driver’s lawful presence in the U.S.

FMCSA Administrator Derek Barrs emphasized that the agency would not compromise on the removal of these drivers from the road.

“Federal regulations are clear: states must correct safety deficiencies on a schedule mutually agreed upon by the agency, and California failed to meet its commitment,” Barrs stated. “We will not accept a corrective plan that knowingly leaves thousands of drivers holding noncompliant licenses behind the wheel of 80,000-pound trucks in open defiance of federal safety regulations.”

The $160 million penalty marks the first year of potential sanctions. Under federal law, if California continues to defy the FMCSA’s Final Determination, the amount withheld could double in the second year.

“We strongly disagree with the federal government’s decision to withhold vital transportation funding from California – their action jeopardizes public safety because these funds are critical for maintaining and improving the roadways we all rely on every day,” California DMV Public Affairs Deputy Director Eva Spiegel told FreightWaves in an email statement.

“The DMV is fully compliant with state and federal regulations and had engaged in positive conversations with FMCSA and DMV about extending the January 5 cancellation date to allow additional time for FMCSA to review the department’s commercial driver’s license program.”

The crackdown is expected to further tighten capacity in a West Coast freight market already grappling with shifts in regulatory policy. FreightWaves has previously reported on the potential for capacity crunches as thousands of drivers – many of whom have been integral to spot market operations – are forced out of service.

Todd Spencer, president of the Owner Operator Independent Drivers Association, said the crackdown on non-domiciled CDLs is overdue. “The days of exploiting cheap labor on the basis of false ‘driver shortage’ claims are over,” Spencer said in a press statement in response to DOT’s latest announcement.

“For too long, loopholes in this program have allowed unqualified drivers onto our highways, putting professional truckers and the motoring public at risk.”