The FMCSA has recently issued an emergency rule restricting eligibility for non-domiciled CDL holders. Under the new rule, only foreign nationals with H-2A, H-2B, or E-2 visas are eligible for a non-domiciled CDL. Employment Authorization Documents (EADs) no longer qualify, and all licenses must now be renewed in person each year, expiring at the end of visa validity or after one year, whichever comes first. States are required to verify immigration status through the Department of Homeland Security’s SAVE system, with penalties for non-compliance, including potential loss of federal highway funding.
While these changes might sound complex, Fetch Freight is here to help you navigate them. We stay ahead of regulatory updates and partner with fully compliant carriers so your freight keeps moving smoothly. Here’s a closer look at how the rule is expected to impact U.S. shippers and carriers:
- Driver Availability: Over the next two years, this will have a meaningful impact on the eligibility of some drivers. There are an estimated 194,000 non-domiciled CDL holders who may be forced out of the industry within the next two years, reducing available driver capacity.
- Rates: The reduction in the number of eligible drivers will place upward pressure on rates in the months ahead. It will have a compounding effect that will be felt over time. (Not next week!)
- Hiring Challenges: Fleets that rely on foreign labor could face increased recruitment costs and longer onboarding timelines.
- Operational Disruption: States must verify driver immigration status through the Department of Homeland Security’s SAVE system, with penalties for non-compliance.
- Safety and Compliance Pressure: Brokers and shippers who are not already vetting carriers for visa compliance risk having freight delayed or held up in transit if a driver is found to be non-compliant.
Of note, in addition to potential driver shortages from the new CDL rules, carriers will also face rising equipment costs due to the 25% tariff on imported Class 8 trucks that was announced last Thursday. This will be an additional headwind for capacity and could impact rates well into 2027.
At Fetch Freight, we’ve partnered with fully compliant carriers to help shippers navigate regulatory changes and keep freight moving without interruption. With our experience and proactive vetting processes, we minimize disruptions even as carriers and shippers adjust to new CDL requirements. Contact us today to ensure your carriers meet the latest compliance standards.