DOT threatens to pull $50M in federal highway funding from NC over truck driver license audit

WASHINGTON (WTVD) -- The Trump administration is threatening to pull some highway funding from North Carolina, claiming the state is violating the law in issuing some driver's licenses to truck drivers.

The U.S. Department of Transportation (DOT) said it found that 54% of licenses issued to people from foreign countries were issued illegally.

The review was conducted by the Federal Motor Carrier Safety Administration (FMCSA), part of FMCSA's ongoing nationwide audit of the state's truck licensing systems.

"North Carolina's failure to follow the rules isn't just shameful - it's dangerous. I'm calling on state leadership to immediately remove these dangerous drivers from our roads and clean up their system," said U.S. Transportation Secretary Sean. P. Duffy. "President Trump and I are committed to keeping you and your family safe on our roads."

The FMCSA said it sent a letter (read it here) to Gov. Josh Stein and North Carolina Division of Motor Vehicles Commissioner Paul Tine, outlining the audit results and corrective actions needed.

The administration said that if North Carolina doesn't fix the problem, it will pull $50 million in federal transportation funding from the state.

ABC11 reached out to the North Carolina Department of Transportation (NCDOT) and other state officials for comment.

The North Carolina Division of Motor Vehicles (NCDMV) is aware of the letter from the Federal Motor Carrier Safety Administration (FMCSA) regarding non-domiciled commercial driver licenses," an NCDMV spokesperson said. "NCDMV is committed to upholding safety and integrity in our licensing processes. We have been collaborating closely with our federal partners for several months to resolve these matters that are impacting many U.S. states."

"From the (North Carolina Trucking Association's) perspective, we understand that a commercial driver's license is issued by a state and that can be operated across state lines. And so we want to make sure that anyone that has one has sort of the full faith and trust of the motoring public that has been issued properly," said Ben Greenberg, President and CEO of the North Carolina Trucking Association.

Greenberg explained the importance of uniformity regarding the issuance of licenses.

"From the motor carrier's standpoint, if they're being issued a CDL by a state issuer, then they're relying on that, which again is part of the problem with it being an interstate industry. You've got to make sure each state is cooperating and doing things the right way, so if I'm a motor carrier in North Carolina and have somebody interested in applying that might have a CDL from a neighboring state, you've got to have full faith and trust that they're being issued properly," Greenberg explained.

In the letter, the US Department of Transportation laid out corrective measures the state must take:

• Immediately pause the issuance of all new, renewed, transferred, amended, corrected, reprinted, or upgraded non-domiciled CLPs and CDLs until FMCSA provides written confirmation that the State's corrective action plan has been accepted and implemented

• As soon as practicable, identify all unexpired non-domiciled CLPs and CDLs that were not issued in compliance with Parts 383 and 384

• Conduct an internal audit to identify all procedural and programming errors; training and quality assurance problems; insufficient policies and practices; and other issues that have resulted in the issuance of non-domiciled CLPs and CDLs that did not meet the standards of Parts 383 and 384 (the scope of the audit should not be limited to the issues identified in this letter)

• As part of the internal audit, review all supporting documentation for all new, renewed, transferred, or upgraded non-domiciled CLP and CDL transactions to ensure compliance with Parts 383 and 384

• Provide FMCSA a copy of the audit findings and the number of unexpired noncompliant non-domiciled CLPs and CDLs

• Take immediate action to correct the deficiencies identified in the State's internal audit and in this letter

• Take immediate action to void or rescind all unexpired noncompliant non-domiciled CLPs and CDLs and, after FMCSA provides written confirmation that the State's corrective action plan has been accepted, reissue the licenses in accordance with Parts 383 and 384, in effect at the time of reissuance

• Resume issuing non-domiciled CLPs and CDLs, including the reissuance of all previously rescinded noncompliant licenses, only after the State has voided or rescinded all unexpired noncompliant non-domiciled CLPs and CDLs, and the State ensures that all statutes, regulations, administrative procedures and practices, organizational structures, internal control mechanisms, resources assignments (facilities, equipment, and personnel), and enforcement practices meet each and every standard of Subpart B of Part 384 and 49 U.S.C. 31311, and FMCSA provides written confirmation that the State's corrective action plan has been accepted and implemented.

Greenberg noted that other states have been similarly affected by the audit.

Broadly, the trucking industry plays a major role in North Carolina's economy.

"Quite literally everything that your viewers have in their homes are on trucks at some point in time. People don't necessarily realize it, but 1 in 15 jobs in North Carolina is a transportation job and over 85% of our communities are solely reliant on trucks for their freight," Greenberg said.

ABC11 reached out to the US Department of Transportation for an interview to discuss the letter. As of Friday afternoon, the agency has not responded to our request.

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