A legal push to strip New York and California of their authority to issue commercial driver's licenses (CDLs) could have major implications for trucking capacity, but transportation experts say the unprecedented lawsuit faces long odds.
The Legal Challenge
The Small Business in Transportation Coalition (SBTC) sharpened its legal arguments in its effort to force the Federal Motor Carrier Safety Administration to decertify the CDL programs of New York and California, according to a report from FreightWaves. In filings submitted July 10 to the U.S. Court of Appeals for the District of Columbia Circuit, SBTC argued that federal law requires the U.S. Department of Transportation to decertify any state found in substantial noncompliance with federal CDL regulations and asked the court to compel the agency to act.
Among the issues SBTC asks the court to resolve is whether 49 U.S.C. §31312 makes decertification mandatory once the transportation secretary determines a state is in substantial noncompliance. SBTC also argues DOT unlawfully delayed acting on its May 27, 2025, petition requesting decertification orders against New York and California. The coalition further asks the court to immediately suspend the CDL authority of both states until they are found to be in substantial compliance.
Expert Analysis: Long Odds and Broad Discretion
Greg Reed, a transportation attorney and partner at Hanson Bridgett LLP, told FreightWaves that SBTC's argument rests largely on its interpretation of one word in the statute — "shall" — but he believes the Department of Transportation retains broad discretion over enforcement. “They really hinge their argument on this particular use of ‘shall,’” Reed said. “But even with the use of ‘shall’ in the statute, the DOT has a significant amount of discretion in terms of how it addresses states that are non-compliant with the CDL requirements.”
Rather than requiring immediate decertification, Reed said Congress gave DOT several enforcement options, including withholding federal highway funds while states work toward compliance. “The DOT has various tools at its disposal,” Reed said. “They might be pursued in different orders or in different manners to achieve state compliance, but there’s no requirement that a state be immediately decertified upon finding that they are not compliant with the CDL requirements.”
Reed emphasized that this case is unprecedented: FMCSA has never taken the extraordinary step of decertifying a state’s CDL program. “It’s certainly unprecedented in the context of requiring decertification of a state’s CDL regime,” Reed said. “The Department of Transportation … has never seriously pursued decertification and has only really previously threatened withholding of funds.” That history, Reed said, makes it unlikely a federal court would compel the agency to take such dramatic action.
Potential Impact on Trucking Capacity
If SBTC were to succeed, the consequences for freight operations would be severe. Reed noted, “You’re talking about two of the largest states for transportation, two of the largest states when it comes to CDL issuance, and the inability of these states to bring drivers into the industry would very quickly and significantly decrease capacity.” New York and California together issue a significant share of U.S. CDLs, and any disruption to their licensing programs would ripple through supply chains dependent on trucking.
The SBTC petition relies in part on a fatal Virginia bus crash involving a New York-licensed commercial driver as evidence that decertification is necessary. However, Reed questioned whether SBTC can demonstrate the type of concrete legal injury necessary to prevail in federal court. “The prospect of further injury … is just too tenuous and remote for a court to take action on,” he said.
What Operators Should Do
Freight forwarders, logistics managers, and shippers should monitor the case closely. Although the lawsuit faces long odds, any ruling that narrows DOT discretion could alter the regulatory landscape. In the meantime, operators should ensure their drivers’ CDL credentials are up to date and compliant with federal standards, regardless of issuing state. If the SBTC petition gains traction, companies that rely heavily on drivers licensed in New York or California may need to identify alternative sources of driver supply or plan for potential capacity tightening.
Watch List
- Court decisions on SBTC's petition and the interpretation of 49 U.S.C. §31312.
- FMCSA's response to the May 27, 2025, decertification petition.
- Any further enforcement actions by DOT against non-compliant states.
- Potential legislative responses to CDL compliance issues.
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