Oregon Stopped Issuing Commercial Driver Licenses to Non-Citizens to Avoid Losing $23.5 Million in Federal Funds

Oregon has been forced to stop issuing Commercial Drivers’ Licenses (CDLs) to non-American citizens to prevent the federal government from withholding millions of dollars in highway funding.

This has been confirmed by both Governor Tina Kotek and the Oregon Department of Transportation (ODOT), which stands to lose $23.5 million in highway funding if it fails to comply with the federal rules.

The rule applies to non-citizens who are legally in the U.S. on a non-permanent basis, such as seasonal farm workers, asylum seekers, refugees, and Deferred Action for Childhood Arrivals (DACA) recipients who came to the U.S. as children and received temporary protection from deportation and work authorization.

New Regulation Effective from March 16, 2026

The updated regulations were imposed by the federal government, effective from March 16, 2026. A spokesperson from ODOT confirmed that the agency risked losing $23.5 million for highway funding in 2027, after which that amount will increase to $47 million annually.

Apart from losing the much-needed federal funding, Oregon also risks losing federal certification of its CDL program. This would impact more than 100,000 license-holders.

The new rule will affect about 900 people in Oregon. Current CDL holders in this category will retain legal status until the date the license expires, after which it cannot be renewed, reinstated, or replaced.

At an earlier press briefing, Governor Kotek said the state had not been given any flexibility. Kotek criticized the new ruling, saying it would create hardship for interim workers who relied on CDLs for their livelihood.

The president and executive director of PCUN, the largest farm workers’ union in the state, has said the new regulation excludes reliable workers from earning a living to support their families.

ODOT states that no non-domiciled CDL holders were involved in fatal accidents in Oregon between 2020 and 2025.