New Federal CDL Rule Finalized

FMCSA Issues Final Rule Changing Framework for Non-Domiciled Commercial Drivers Licenses; Final Rule, like Interim Final Rule, Is Subject to Legal Challenges

Last September, the Federal Motor Carrier Safety Administration (FMCSA) issued an interim final rule that made significant changes to the regulations that govern non-domiciled Commercial Drivers Licenses (CDLs), which are CDLs issued to individuals whose primary residence is outside the U.S. but who are lawfully present in the U.S. under an employment authorization. Those changes included new requirements that tightened both the screening procedures used to issue non-domiciled CDLs and the eligibility criteria for non-domiciled CDLs issued to immigrants.

Although interim final rules usually do not take effect before the end of a public comment period, the FMCSA’s interim final rule on non-domiciled CDLs was designated to take effect immediately. Several parties including individual drivers, labor unions, and local governments, then filed petitions in the Court of Appeals for the D.C. Circuit that argued the interim final rule was illegal and did not comply with certain administrative requirements for rulemaking.

In November, the Court of Appeals issued its decision and stayed the enforcement of the interim final rule in its entirety. The Court of Appeals found that the parties challenging the interim final rule were likely to succeed in at least three of their challenges.

First, the Court of Appeals found that the petitioners would likely succeed on their claim that the FMCSA improperly issued the rule without prior “consultation with the States,” which is required by statute. The FMCSA argued that consultation was not required because the total cost to States of complying with the new regulations is not expected to be substantial and because consultation was not practicable. The Court of Appeals rejected those arguments, finding that the statutory requirement for consultation with the States does not contain any exceptions for insubstantial costs or impracticability.

Second, the Court of Appeals found that the petitioners would likely succeed on their claim that the FMCSA did not show good cause for issuing the rule without notice and comment. The Court of Appeals reasoned that the FMCSA attempted to show good cause based on public safety, but the Court of Appeals found that the FMCSA did not do so in part because the agency’s own data shows that non-domiciled CDL holders account for approximately 5 percent of all CDL holders but only about 0.2 percent of fatal crashes. The Court of Appeals also reasoned that given the FMCSA’s expectation that less-experienced drivers would replace the non-domiciled ones forced out of the market, the FMCSA did not appear to have shown that the rule would produce any net safety benefit.

Third, the Court of Appeals found that the petitioners would likely succeed on their claim that the FMCSA acted arbitrarily and capriciously in issuing the rule. The Court of Appeals also based this finding on FMCSA’s data showing that non-domiciled CDL holders account for disproportionately less fatal crashes than other CDL holders, as well as the FMCSA’s failure to adequately consider the reliance interests of immigrants who currently hold non-domiciled CDLs.

Because the Court of Appeals blocked the implementation of the interim final rule in its entirety, the FMCSA’s previous regulations for non-domiciled CDLs have been in effect instead.

The FMCSA has now issued its final rule changing the framework for non-domiciled CDLs. The rule was published in the Federal Register on February 13, 2026, and is scheduled to become effective on March 16, 2026. Some of the parties who successfully filed a petition challenging the interim final rule have also filed a petition challenging the final rule. It therefore remains to be seen if the final rule, which states that it reaffirms the requirements of the interim final rule with minor revisions for clarity, will go into effect on March 16, 2026 as announced. For guidance on how companies can prepare for the potential implementation of the new requirements, please see Setliff Law’s article on the interim final rule, Navigating Non-Domiciled CDL Drivers: FMCSA Recognition and Employer Strategies for Litigation Protection.

The bottom line? Companies that employ non-domiciled CDL drivers are operating in a legal gray zone right now. The prior regulations remain in effect for the moment because the interim rule was stayed, but the FMCSA’s final rule is scheduled to take effect and is already being challenged again. That means the rules that govern non-domiciled CDLs could change quickly.

In practical terms, that means companies that employ non-domiciled CDL drivers should monitor the March 16 effective date closely and watch for another stay. Companies should also audit their non-domiciled drivers now so that they understand how the final rule, if it goes into effect, will affect their current employees. Most critically, companies should continue to plan for potential tightening of eligibility criteria, and the impact that could have on their operations.

The petitions challenging the interim final rule are styled as Jorge Lujan, et al. v. Federal Motor Carrier Safety Administration, et al., case number 25-1215, in the U.S. Court of Appeals for the D.C. Circuit. The petition challenging the final rule is styled as Jorge Lujan, et al. v. Federal Motor Carrier Safety Administration, et al., case number 26-1032, in the U.S. Court of Appeals for the D.C. Circuit.

If you have questions about this article, please contact Danielle Brim (dbrim@setlifflaw.com) at (804) 377-1264 or Steve Setliff (ssetliff@setlifflaw.com) at (804) 377-1261.