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Oregon Permanently Ends Issuing Non‑Domiciled CDLs, CLPs
Move Protects Federal Funds; 900 Drivers Unable to Renew or Replace Credentials
Key Takeaways:
- Oregon permanently stopped issuing non-domiciled CDLs and CLPs on March 12 after federal officials warned the state risked losing $23.5 million in 2027.
- FMCSA cited a 13% failure rate in Oregon’s issuance process and said the DMV lacked adequate controls to meet federal requirements.
- Current limited-term CDL and CLP holders may keep their credentials until expiration, while Oregon would need legislative and system changes to restart the program.
Oregon has permanently stopped issuing non-domiciled commercial driver licenses and learner’s permits in a move that will impact 900 drivers.
This decision was reached March 12 when the Oregon Transportation Commission approved a request by Driver and Motor Vehicle Services Administrator Amy Joyce to end issuing limited-term CDLs and CLPs.
Joyce expressed concerns to the commission members over the Federal Motor Carrier Safety Administration’s from the state due to noncompliance.
“We were the 25th state to receive one of those noncompliance letters. It indicated that unless we corrected our problems, we risk losing $23.5 million in federal funds in fiscal year 2027, double that in fiscal year 2028 and years subsequent and loss of our ability to even issue CDLs,” Joyce said.
The decision to stop issuing any type of limited-term CDL and CLP is linked both to a notice sent Jan. 20 from FMCSA in a preliminary finding of noncompliance in Oregon’s issuance of limited-term CDLs and CLPs as well as a final federal regulation that took effect March 16 with stricter mandates.
Derek Barrs, FMCSA administrator, informed Joyce and Gov. Tina Kotek that a sample audit last year of 1,426 valid non-domiciled CLPs and CDLs revealed a 13% failure rate in adhering to federal requirements.
Auditors found “a breakdown” in the DMV’s process for issuing these licenses and permits, Barrs said.
“DMV was unable to provide evidence of sufficient management controls to prevent these errors or catch them if they occur. Further, DMV has not programmed its systems with sufficient measures to prevent errors from occurring,” he added. “This is an unacceptable deviation from FMCSA’s regulations when issuing credentials to operate commercial motor vehicles.”
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Barrs during a press conference Feb. 20. (Noël Fletcher/Transport Topics)
Chris Crabb, spokeswoman for the Oregon Department of Transportation, told Transport Topics the state would face numerous challenges complying with FMCSA regulations if it resumed issuing those licenses and permits. Oregon stopped issuing those driving credentials predominantly used by foreign national drivers after the FMCSA instituted a nationwide halt to audit states. Then, Oregon received a notice of noncompliance that has prevented the DMV from moving forward with its previous limited-term CDL and CLP issuances.
Crabb said state officials “would have to seek legislative changes to statutes and then make changes to IT systems, administrative rules, policies and procedures to restart the issuance of non-domiciled commercial credentials under the new federal rules.”
She said a self-audit of state records indicated “only a tiny number” of the 900 people who currently hold a limited-term CDL or CLP would qualify under the new federal rules.
“People who currently have a valid limited-term CDL or CLP can maintain it until it expires or until it is suspended, canceled, revoked or the card is lost,” Crabb explained.
She said the state DMV will no longer issue these licenses and permits in any form — new ones, renewals, replacements, amendments, corrections, reprints or reinstatements. This also ends any process to restart driving privileges that temporarily ended or require producing a new card.
Nevada Made Similar Decision
Nevada announced Nov. 4 it would cancel nearly 1,000 non-domiciled CDLs after determining that the permit holders failed to comply with FMCSA regulations.
The state also had a limited-term CDL program as its version of non-domiciled licenses and permits.
“By phasing out the Limited-Term CDL Program, we are protecting federal highway funding, maintaining program integrity and ensuring that Nevada’s licensing system remains fully compliant with national standards,” announced Tonya Laney, director of the state’s Department of Motor Vehicles.
States aren’t required to issue non-domiciled CDLs, but most do. Now Oregon and Nevada join a growing number of states such as Alabama, Arkansas, Mississippi, Tennessee and West Virginia that no longer issue these types of licenses.
