Illinois Secretary of State Given 30-Day Ultimatum Following Audit Revealing Illegal Issuance of Noncitizen Trucking Licenses

U.S. Transportation Department Threatens to Withhold $128 Million from Illinois Over Improper Commercial Licenses

Illinois faces the potential loss of $128 million in federal highway funding after a Department of Transportation audit found that one in five commercial driver’s licenses issued to noncitizens were granted illegally. Transportation Secretary Sean Duffy has given Governor JB Pritzker and state licensing officials 30 days to rectify the situation or face financial consequences.

In a written ultimatum to Pritzker and Kevin Duesterhaus, the state director of driver services under Illinois Secretary of State Alexi Giannoulias, Duffy detailed multiple cases of drivers from countries including El Salvador, Kyrgyzstan, Nigeria, Moldova, and Ukraine who received licenses in violation of federal regulations.

“I need our state partners to understand that they work for the American people, not illegal immigrants who broke the law illegally entering our country and continue to break it by operating massive big rigs without the proper qualifications,” Duffy said in a statement.

The federal review identified two main categories of violations: drivers whose license validity dates exceeded their lawful presence in the United States, and individuals who were issued licenses without Illinois properly verifying their legal status. Several examples cited in the audit include two Kyrgyz nationals who presented expired employment authorizations, a Nigerian national and a Moldovan national in similar circumstances, and a Singaporean national who received a license after submitting only partial documentation.

At stake is Illinois’ share of the National Highway Performance Program and Surface Transportation Block Grants for fiscal year 2027. More severely, if the Federal Motor Carrier Safety Administration issues a final determination of substantial noncompliance, it could decertify Illinois’ entire commercial driver’s license program.

The audit is part of the Trump administration’s broader effort to enforce licensing standards across multiple states. The administration has already taken similar actions against California, New York, and Pennsylvania, with California facing a potential $160 million funding cut over similar issues.

According to federal regulations, non-domiciled commercial driver’s licenses (CDLs) may only be issued to noncitizens who are not permanent residents. The sole exceptions are drivers from Canada and Mexico, whose licensing systems have been determined by the U.S. Department of Transportation to meet American standards, in recognition of reciprocal agreements between these nations.

The Illinois Secretary of State’s office has pushed back against the federal government’s characterization. In a statement, Giannoulias condemned what he called a “threat” to state funding and expressed concern about the economic implications.

“A strong economy depends on strong logistics,” Giannoulias said. “If trucks don’t move, supply chains fail, prices rise, and families feel it in their pocketbooks. We can see the actions by the Trump administration taking their toll on our truckers and our farmers, both of whom are essential to Illinois’ economy.”

Giannoulias’s office maintains that the state’s CDL issuance policies are “substantially compliant” with federal requirements and has pledged to conduct its own review of the findings. The office also noted that the Illinois Agricultural Association has raised concerns about the pause in issuing non-domiciled CDLs, stating that “Illinois agriculture depends on timely, practical, and legally sound regulatory decisions.”

To comply with the federal demands, Illinois must immediately pause issuance of all non-domiciled CDLs, identify noncompliant licenses already in circulation, revoke improper licenses, reissue compliant ones, and conduct an internal audit of its procedures.

The issue highlights the ongoing tension between federal transportation safety standards and state licensing practices, particularly regarding noncitizen drivers operating commercial vehicles on American roadways.