Minnesota Faces $30.4 Million Funding Cut Over Truck-Driver License Violations

02 December 2025

Creator: Annabelle Gordon Credit: REUTERS

The U.S. government has issued a stern warning to the state of Minnesota, it may withhold up to $30.4 million in federal highway funding after finding the state issued commercial driver licenses (CDLs) to non-U.S. residents in violation of federal law. The notice represents a major escalation in efforts to enforce stricter licensing rules nationwide.

According to a letter from the U.S. Department of Transportation, a recent audit revealed Minnesota allowed individuals without lawful permanent residence or valid immigration status to obtain CDLs credentials that qualify them to operate big rig trucks and other commercial vehicles. As a result, the state has been given 30 days to revoke improperly issued licenses and demonstrate compliance. If it fails to do so, the funding cut could take effect.

The crackdown is part of a broader federal push to tighten oversight of commercial driver licensing in the wake of a fatal crash in Florida involving a driver whose status raised questions. In September, DOT introduced emergency rules limiting eligibility for CDLs to persons with legally verified status, a move that forced states to re-examine recent license issuances.

In tandem with threats to Minnesota, the agency removed nearly 3,000 commercial driving-school operators from a federal registry after finding they failed to meet minimum training standards. Another 4,000 such providers received warnings. The goal: to clamp down on “CDL mills” organizations offering weak or fraudulent training that produce under-qualified drivers.

The reaction from Minnesota officials has been wary but cautious. A spokesperson for the state government said they are reviewing the letter and working to ensure compliance with federal law. The state’s Department of Public Safety reportedly paused issuing CDLs to non-domiciled applicants, while also beginning internal audits to identify and rectify questionable licenses.

Still, critics within the state warn that a cut in federal transportation funding could have serious consequences. Minnesota relies heavily on those funds to maintain roads, bridges, and public transport infrastructure that affects millions of daily commuters and businesses. A funding freeze might delay maintenance, disrupt highway projects, and worsen logistics for freight carriers.

Supporters of the crackdown argue the move is overdue. They claim allowing unverified drivers to operate commercial vehicles undermines road safety and devalues the qualifications of properly licensed drivers. With roughly 16 percent of U.S. truck drivers born outside the country, federal enforcement aims to ensure legal compliance without broadly penalizing immigrants who have proper work authorization and have passed licencing requirements.

The stakes are high not just for Minnesota but for other states watching closely. Earlier this year, California faced similar threats from the same federal agency after allegedly issuing thousands of improper CDLs. In California’s case, nearly $160 million in highway funds were targeted for forfeiture unless the state revoked questionable licenses.

For Minnesota, the pressure is now on. Officials must act quickly to review and potentially purge non-compliant licenses, re-verify driver eligibility, and ensure training providers meet federal standards. The next 30 days will determine whether residents face disrupted infrastructure funding or whether compliance and federal-state cooperation will avert crisis.