Licensing compliance issues could potentially result in the DOT revoking millions in funding. The US Department of Transportation (DOT) is threatening to withhold nearly $50 million in transportation funds for North Carolina. In particular, two major federal highway programs in North Carolina could lose funding in fiscal year 2027. The DOT also noted that the Florida Motor Carrier Safety Administration (FMCSA) may decertify North Carolina’s CDL program. This article explains the reason for the potential financing loss.
Why is the US DOT Potential Revoking Millions In Funding for North Carolina?
The threat to revoke nearly $50 million in transportation funding in North Carolina stems from an investigation into licensing issues. An FMCSA audit found that the state had issued more than half of the non-domiciled commercial driver licenses illegally. North Carolina further gave non-domiciled CDLs to drivers whose lawful presence in the US had soon expired. The audit also notes that North Carolina issued commercial licenses to Mexican citizens ineligible under federal law. US Transportation Security Sean P. Duffy stated, “North Carolina’s failure to follow the rules isn’t just shameful – it’s dangerous.”
Along with announcing the withholding of $50 million, the DOT announced a list of corrective actions for North Carolina. To prevent funding sanctions, the DOT must:
- Pause the issuing of non-domiciled CDLS.
- Revoke all licenses that do not comply with federal laws.
- Identify all unexpired non-domiciled CDLs that do not comply with FMCSA regulations.
- Conduct a comprehensive internal audit of DMV procedures.
The FMSCA gave North Carolina 30 days to respond, either by taking corrective action or by contesting the finding.
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