North Carolina Faces $50 Million Funding Risk Over Immigrant Driver Licenses

Wed Feb 18 2026 17:40:08 GMT+0200 (Eastern European Standard Time)

The federal government warns North Carolina it risks losing $50 million in funding if it does not revoke improperly issued commercial driver’s licenses to unqualified immigrants following a significant audit.

North Carolina could lose nearly $50 million in federal funding due to improper licensing practices after an audit revealed more than half of the commercial driver’s licenses issued to immigrants were questionable. The review, led by the U.S. Transportation Department, was initiated following a fatal accident caused by an unlicensed driver. State officials have been urged to rectify the licensing issues to avoid losing federal funding.

North Carolina might forfeit nearly $50 million in federal funding if it fails to revoke commercial driver’s licenses from immigrants who aren't authorized to hold them, according to a statement from the U.S. Transportation Department.

The cautionary notice comes after an audit that revealed significant discrepancies in the commercial driver’s licenses issued in North Carolina, leading it to become the ninth state scrutinized under a nationwide review initiated last year by Transportation Secretary Sean Duffy. This examination aims to ensure that only properly qualified individuals hold driver's licenses necessary for operating commercial vehicles.

The scrutiny gained momentum after a tragic incident in Florida, where a crash caused by an unauthorized truck driver resulted in three fatalities. Following this event, the Federal Motor Carrier Safety Administration examined 50 commercial driver’s licenses issued to immigrants in North Carolina, uncovering issues with more than half of them.

Duffy commented on the situation, stating, North Carolina’s failure to follow the rules isn’t just shameful — it’s dangerous.”

Federal officials have noted that 924 licenses are still unexpired, emphasizing the urgency for the state to rectify its licensing processes or face the financial consequences of losing federal funds.

The state's response is still pending. A DMV official indicated they would be issuing a statement by the end of the day.

In a related development, Tennessee has commenced a review of its commercial driver’s licenses and plans to notify approximately 8,800 holders about the necessity of providing proof of citizenship or valid immigration documentation.

Industry groups have welcomed the federal intervention, citing concerns over unqualified drivers operating heavy trucks, while immigrant advocacy groups have expressed apprehension about witch hunts targeting immigrant drivers, particularly following recent accidents involving Sikh truckers.

Overall, with immigrants comprising approximately 20% of the trucking workforce, the implications of this federal review are substantial for many drivers who face potential licensing challenges.