The Small Business in Transportation Coalition (SBTC) has escalated a dispute over commercial driver's license (CDL) compliance by petitioning a federal court to decertify the CDL programs of New York and California, a move that could disrupt trucking capacity across major U.S. lanes if successful.
Petition Filed in D.C. Circuit
SBTC filed the petition on June 10 in the U.S. Court of Appeals for the District of Columbia Circuit, according to FreightWaves. The filing asks the court to review actions by the Federal Motor Carrier Safety Administration (FMCSA) and the U.S. Department of Transportation and order them to revoke the authority of New York and California to issue commercial driver's licenses. SBTC argues that FMCSA has already determined both states were in "substantial noncompliance" with federal CDL regulations and that federal law requires the transportation secretary to prohibit a state from issuing CDLs once such a determination is made.
The petition specifically challenges FMCSA's April 16 final determination regarding New York and a Jan. 7 determination involving California. SBTC also alleges the agency improperly failed to act on a petition the coalition submitted in May 2025 requesting decertification orders against several states, including New York and California.
Virginia Crash Cited as Evidence
The lawsuit comes less than two weeks after a fatal bus crash on Interstate 95 in Virginia that killed five people and injured dozens more, according to the court filing. SBTC points to the May 29 crash as evidence that stronger enforcement of federal licensing standards is needed. The organization alleges the bus driver involved held a New York-issued CDL despite concerns about English-language proficiency.
The crash involved a bus operated by E&P Travel Inc. Federal investigators are examining the company's connections to a broader network of bus operators in the Northeast, according to CBS News. The driver, identified by CBS News as Jing S. Dong of Staten Island, New York, faces five felony involuntary manslaughter charges.
Compliance Findings at Center of Dispute
SBTC's petition centers on FMCSA's nationwide review of state CDL programs following changes to federal rules governing non-domiciled commercial driver's licenses. The coalition says FMCSA's audits initially identified 24 states and the District of Columbia as being in substantial noncompliance with federal CDL requirements. According to the filing, New York and California ultimately received final notices of substantial noncompliance after federal reviews of their handling of non-domiciled CDL and permit applications.
| State | Noncompliance Rate |
|---|---|
| New York | >55% |
| California | ~25% |
The petition alleges that during federal audits, New York's noncompliance rate exceeded 55%, while California's was about 25%. SBTC argues those findings legally trigger mandatory decertification orders. FMCSA previously warned multiple states that they could face funding consequences or additional enforcement actions if they failed to comply with federal CDL standards for non-domiciled drivers.
Latest Chapter in Broader Legal Battle
The lawsuit follows a separate high-profile challenge brought by Florida against California and Washington. In May, the U.S. Supreme Court declined Florida's request to file an original-action lawsuit alleging California and Washington violated federal law by issuing CDLs to undocumented immigrants. That case stemmed from a fatal crash on Florida's Turnpike involving a truck driver who reportedly held a California-issued CDL and had previously been licensed in Washington.
Implications for Trucking Industry
For shippers and freight operators, the potential decertification of CDL programs in New York and California could significantly reduce the pool of qualified commercial drivers, especially on lanes serving or originating from these states. FMCSA's noncompliance findings already signal that both states' CDL programs do not meet federal standards, raising concerns about the validity of licenses currently held by thousands of drivers. If the court orders decertification, it could lead to a rapid re-licensing process for affected drivers, creating temporary capacity constraints and upward pressure on trucking rates. The outcome of this petition will be closely watched by stakeholders in the logistics and transportation sectors.
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