DOT Closes CDL Loophole: Impacts on Freight Capacity and Rates (FMCSA, USDOT)

The U.S. Department of Transportation finalized a rule closing a fatal CDL loophole by eliminating Commercial Driver’s Licenses issued to non-domiciled applicants using Employment Authorization Documents (EADs). The change limits eligible non-domiciled licenses to H-2A, H-2B, and E-2 visa holders who undergo interagency vetting, requires unexpired passports and I-94, and mandates SAVE verification. This reform, effective 30 days after publication (January 29, 2026), removes tens of thousands of at-risk drivers from the market, creating immediate capacity constraints for midsize and smaller fleets. Larger carriers and public companies must prepare for higher driver compensation, which will likely translate to upward pressure on shipping rates, with tighter markets in California, New York, and Texas expected in the short term. Truckers with H-2A, H-2B, or E-2 status and valid documentation remain eligible; others must seek legal counsel. Shippers should audit carrier credentials and consider rate premiums reflecting safer, better-vetted driver pools. Congress should act to codify the rule under the Non-Domiciled CDL Integrity Act to ensure stability and prevent regulatory rollbacks.