The U.S. Department of Transportation warned Pennsylvania on Nov. 20 that it will withhold nearly $75 million in federal funds unless the state pauses certain commercial driver’s license issuances and fixes alleged compliance failures. The move follows the arrest of an Uzbek national in Kansas who held a Pennsylvania-issued CDL, which federal officials cite as a security concern. Gov. Josh Shapiro’s office says the state is following federal rules and verifying applicants through a DHS database.
The Trump administration on Thursday, Nov. 20, notified Pennsylvania that nearly $75 million in federal transportation funding is at risk unless the state immediately pauses issuing, renewing, transferring, or upgrading non‑domiciled commercial driver’s licenses and permits and remedies alleged violations in its CDL program.
In a letter and public statement, Transportation Secretary Sean Duffy said federal auditors found that Pennsylvania issued some non‑domiciled CDLs with expiration dates extending beyond a driver’s authorized stay in the United States and, in some cases, could not show proof that lawful presence was verified at issuance. The department is also directing the state to identify and void any noncompliant licenses. Duffy said the action is intended to keep “dangerous foreign drivers” off the roads; his statement also sharply criticized Biden-era border policies.
Shapiro’s office disputes the federal characterization. It says PennDOT has complied with federal audits and that “not a single commercial driver’s license” was issued to an ineligible applicant, adding that all non‑citizen applicants’ legal presence is verified through DHS’s SAVE system. The administration’s letter, however, cites findings that in a small number of cases license terms exceeded lawful presence and, in several cases reviewed, the state could not document proof-of-presence checks. Pennsylvania says it is reviewing the department’s letter and will respond within the required timeline.
The warning comes after ICE arrested an Uzbek national on Nov. 9 in Kansas who, according to DHS, was wanted in his home country on terrorism charges and held a Pennsylvania‑issued CDL. Federal officials have pointed to the case in pressing states to tighten licensing controls for non‑citizen drivers. Shapiro has said the state relied on the federal database when issuing the CDL and called on DHS to improve the system’s maintenance.
The dispute unfolds amid broader federal moves regarding non‑domiciled CDLs. On Sept. 29, 2025, the Federal Motor Carrier Safety Administration issued an interim final rule that would sharply limit eligibility and require tighter verification. PennDOT paused issuance of non‑domiciled commercial driver products after that rule. A federal appeals court has since stayed the rule pending review, but DOT says states under corrective action must continue to comply with their plans.
Pennsylvania is not the first state targeted. Earlier this fall, DOT withheld about $40.6 million from California over alleged failures to enforce English‑language proficiency rules for commercial drivers. Separately, DOT has said California improperly issued thousands of non‑domiciled CDLs and has moved to invalidate them. In Florida, a separate controversy over an August crash that killed three people has prompted the state to sue California and Washington over their licensing practices for non‑citizens.
What’s next: DOT has asked Pennsylvania to pause specified CDL actions, audit its records, and void any licenses that do not meet federal requirements. The state says safety is its top priority and that it continues to follow federal verification procedures while it reviews the federal findings.
