U.S. May Withhold $30.4 Million From Minnesota Over Improper Commercial Driver Licenses

The U.S. Transportation Department has warned Minnesota that it could lose up to $30.4 million in federal highway funding after an audit found the state had improperly issued commercial driver licenses (CDLs) to non-U.S. residents. In a letter to Governor Tim Walz, federal officials gave the state 30 days to fix the violations and revoke the licenses that do not meet federal standards.

The warning follows emergency rules issued in September aimed at tightening CDL eligibility for non-U.S. citizens after a deadly Florida crash and concerns raised in a federal review. A spokesperson for Governor Walz said Minnesota is reviewing the letter and emphasized that the state has already taken steps to comply with federal safety requirements.

The Transportation Department also announced the removal of nearly 3,000 CDL training providers from its national registry for failing to properly train commercial drivers. Another 4,000 providers were placed on notice for potential compliance issues, highlighting ongoing federal efforts to improve truck driver training and roadway safety nationwide.

This development comes amid political tension, as President Donald Trump has criticized Walz, the Democratic vice-presidential nominee for 2024. Walz recently urged Trump to release results of a medical scan, prompting the White House to clarify that Trump’s MRI was routine and showed good cardiovascular health.

Federal scrutiny of state licensing practices is increasing. Last month, California was threatened with a $160 million funding loss unless it revoked 17,000 improperly issued CDL licenses. In October, the state also had $40.6 million withheld for failing to enforce English language proficiency rules for commercial drivers. Trump previously ordered stricter enforcement of these standards, reversing a 2016 policy that prevented inspectors from sidelining drivers solely for poor English skills.

With about 16% of U.S. truck drivers born outside the country, federal officials say consistent enforcement is essential to ensuring safety across America’s highways.