California Cancels 13,000 Non-Domiciled CDLs After Federal Audit

Key Details The California Department of Motor Vehicles cancelled approximately 13,000 non-domiciled commercial driver's licenses effective March 6, 2026, following federal government requirements. All affected CDL holders have been notified and must apply for Class C licenses to continue driving passenger vehicles. Why It Matters The cancellations stem from a federal audit finding that more than 25% of California's non-domiciled CDLs were issued unlawfully. In January 2026, the U.S. Department of Transportation revoked $158 million in state transportation funding over California's failure to meet the original January 5 deadline. The Dispute The California DMV contests the federal action, stating all cancelled drivers had work authorization and were legally present when licensed. DMV Director Steve Gordon criticized the enforcement as targeting qualified workers, noting federal law permits non-citizens to obtain CDLs. Next Steps While federal courts allow affected individuals to reapply for CDLs, the federal government is currently blocking the DMV from processing new applications. The DMV urges the federal government to lift restrictions so eligible drivers can obtain licenses. Non-domiciled individuals include visa holders, refugees, and asylees who lack citizenship or lawful permanent residency status.