RALEIGH, N.C. — North Carolina is now staring down a nearly $50 million federal penalty after federal transportation officials accused the state of improperly issuing commercial driver’s licenses (CDLs) to immigrants.
According to a federal audit by the Federal Motor Carrier Safety Administration (FMCSA), North Carolina failed to properly verify immigration status in a number of commercial driver’s license cases — a violation that could cost the state $48.8 million in federal highway and transportation funding if corrective action isn’t taken.
What Triggered the Federal Crackdown
The issue stems from a federal review of 50 immigrant-issued commercial driver’s licenses in North Carolina. More than half of those licenses were found to be improperly issued, according to the audit.
Federal regulators say North Carolina failed to ensure that CDL holders maintained valid immigration or work authorization as required under federal law. When that authorization expires, the CDL is supposed to be revoked or downgraded — something auditors say did not consistently happen.
As of the audit:
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924 immigrant CDLs remained active in North Carolina
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Several were tied to drivers whose federal eligibility had expired
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The state was flagged for systemic compliance failures
Why $50 Million Is on the Line
Under federal transportation law, states must comply with strict CDL oversight rules to receive federal highway funding.
If North Carolina does not:
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Revoke improperly issued licenses
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Correct its verification process
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Prove future compliance
The U.S. Department of Transportation (DOT) can legally withhold federal funds, putting nearly $50 million at risk.
Federal officials have already used this enforcement tool against other states, including California, where funding was partially frozen over similar violations.
Federal Officials: “This Is a Safety Issue”
U.S. transportation leaders say improperly issued CDLs are more than a technical issue — they’re a public safety concern.
Commercial drivers operate:
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Tractor-trailers
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Tankers
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Passenger buses
North Carolina’s Response
North Carolina DMV officials say the state is working with federal regulators and reviewing license records to bring the system into compliance.
State leaders have not denied the audit findings but say:
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The issue involves complex federal immigration rules
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They are attempting to resolve it without harming lawful drivers
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Compliance changes are underway
No final decision has been announced on whether the money will actually be pulled — but the threat is very real.
