Duffy Exposes Massive CDL Fraud in North Carolina — $50M in Federal Funds Threatened

Source: Fox News

Transportation Secretary Sean Duffy has accused the state of North Carolina of issuing illegally approved truck licenses to dangerous drivers, revealing that 54% of non-domiciled CDLs reviewed by federal auditors were granted in violation of federal regulations.

The revelation comes amid a nationwide FMCSA audit targeting states suspected of failing to properly vet commercial driver’s license applicants. According to Duffy, if North Carolina fails to revoke all noncompliant licenses, the U.S. Department of Transportation (DOT) will withhold nearly $50 million in federal highway and safety funding.

“North Carolina’s failure to follow the rules isn’t just shameful — it’s dangerous,” Duffy said in a statement. “I’m calling on state leadership to immediately remove these dangerous drivers from our roads and clean up their system. President Trump and I are committed to keeping you and your family safe.”

In a formal letter to Governor Josh Stein and Public Safety Commissioner Paul Tine, the Federal Motor Carrier Safety Administration (FMCSA) alleged that the state issued CDLs to ineligible foreign drivers — including those whose lawful presence in the U.S. had expired or was never verified.

FMCSA Administrator Derek Barrs described the situation as “egregious,” calling for an immediate halt to all new non-domiciled CDL issuances.

To avoid losing federal funding, North Carolina must:

• Suspend the issuance of new non-domiciled CDLs;

• Identify and revoke all existing noncompliant licenses;

• Conduct a full internal audit of its licensing systems and training protocols.

This announcement follows similar federal scrutiny of California’s CDL program, which recently led to the retention of $160 million in funding due to noncompliance issues.