FMCSA Shakes Up Trucking: 200k Non-Domiciled CDL Drivers Out

Amy Chavez

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October 3, 2025

The trucking industry is facing two massive changes at once: an FMCSA emergency CDL rule that could push 200,000 drivers out of the market, and a new 25% tariff on imported heavy trucks that could add tens of thousands of dollars to the cost of new equipment. For small carriers and owner-operators, these back-to-back policy shifts will impact hiring, equipment decisions, and profitability.

This week on This Week in Trucking: Hot Right Now, Amy breaks down what these changes mean for your business and how to prepare.

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The FMCSA’s Emergency CDL Rule

On September 27th, the FMCSA issued an emergency rule tightening the requirements for non-domiciled CDLs. Moving forward, only drivers with specific, approved employment-based visas (H-2A, H-2B, E-2) are eligible.

That means drivers who obtained a CDL with just a standard Employment Authorization Document (EAD)—such as asylum seekers or DACA recipients—can no longer get or renew a license.

The impact is huge: about 200,000 drivers currently hold these non-domiciled CDLs. While they can continue driving until their licenses expire, they will eventually exit the industry over the next two years.

What This Means for Small Carriers

Shrinking Driver Pool: States like California and Texas, where many of these drivers are based, will be hit hardest.
Rate Opportunity: With fewer drivers available, compliant carriers may be able to negotiate higher freight rates.
Hiring Risks: If you are hiring, paperwork must be flawless. Carriers must verify not just the CDL, but the driver’s visa status to stay compliant.

The 25% Heavy Truck Tariff

On October 1st, a new 25% tariff goes into effect on imported heavy-duty trucks. Combined with the existing Federal Excise Tax, this tariff could add tens of thousands of dollars to the price of a new tractor.

For small carriers, that means buying a new truck just got a lot more expensive.

The Ripple Effect

The tariffs don’t stop at trucks—furniture and pharmaceuticals are also impacted, potentially slowing demand in those freight sectors.

What Carriers Should Do

Maintain Your Rig: Preventive maintenance is now more important than ever. Extending the lifespan of your current truck will save you from inflated purchase costs.
Protect Your Profit: Rising equipment costs make cash flow management critical. This is where factoring comes in—getting paid faster for loads means you won’t have to delay repairs or maintenance while waiting for broker checks.

At Bobtail, we offer hassle-free factoring with no long-term contracts or hidden fees. That means same or next-day payments on delivered loads, so you can keep your trucks road-ready without stressing about 30–60 day broker terms.

Why Staying Informed Matters

These kinds of changes—driver supply shocks and tariff hikes—can reshape the industry overnight. Small carriers who pay attention and adapt quickly are the ones who not only survive, but thrive.

Stay ahead of the curve by subscribing to the This Week in Trucking newsletter. Every week we break down the hottest freight markets by equipment type, plus interviews with carriers who share their real cost per mile and PROFITS.

Episode FAQs

How many drivers will be affected by the FMCSA’s new CDL rule?

Roughly 200,000 drivers who currently hold non-domiciled CDLs issued with Employment Authorization Documents (EADs) will be impacted. Over the next two years, most will leave the market as their licenses expire.

Which visas still qualify for a non-domiciled CDL?

Only H-2A, H-2B, and E-2 visas are accepted under the new FMCSA rule.

How will the CDL rule affect freight rates?

A smaller driver pool usually means tighter capacity. Carriers who remain compliant may see better load opportunities and stronger negotiating power with shippers and brokers.

What is the new truck tariff, and when does it start?

A 25% tariff on imported heavy-duty trucks begins October 1st, 2025. This is in addition to the Federal Excise Tax, significantly raising the price of new tractors.

How much could the tariff increase truck prices?

Industry estimates suggest tens of thousands of dollars could be added to the cost of a new truck due to the combined effect of tariffs and taxes.

How can small carriers protect themselves from these rising costs?

Focus on preventive maintenance to extend equipment lifespan.
Strengthen cash flow with factoring to cover maintenance and operating expenses.
Use tightening driver supply to negotiate stronger freight rates.

Will these changes affect freight demand?

Yes. In addition to trucks, tariffs on furniture and pharmaceuticals could cool demand in those sectors, creating ripple effects across the supply chain.

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Full Transcript

0:00from this week in trucking. This is hot

0:02right now and I’m Amy. Truck prices are

0:04set to jump and a huge group of drivers

0:06just got kicked out of the trucking

0:08industry. If you own a truck or run a

0:10small fleet, two huge immediate changes

0:13are hitting your business right now. But

0:15before we get into it, don’t forget to

0:16subscribe so you never miss an update.

0:18First, let’s talk about drivers. The

0:21FMCSA has issued a new rule that went

0:23into effect September 27th, 2025 that

0:26makes it much harder to get a

0:28non-domicile CDL. The FMCSA took this

0:31emergency action because a recent review

0:33found serious problems in how multiple

0:35states were issuing these licenses. This

0:38included issuing licenses to drivers who

0:41were ineligible and allowing licenses to

0:43stay valid long after the driver’s legal

0:46stay in the US had expired. This was

0:49done to strengthen safety and security

0:52on the road following a number of fatal

0:54crashes involving non-domicile CDL

0:57holders. Here’s a change that matters

0:59moving forward. If you’re not a US

1:01citizen, you can only apply for a

1:03non-domiciled CDL if you have a specific

1:06approved employment visa. The people who

1:09had licenses using just a standard work

1:12permit called an EAD, like asylum

1:14seekers or DACA recipients, are no

1:18longer eligible to renew or get that

1:20license. The impact of this is massive.

1:23About 200,000 drivers currently hold

1:26these non-domiciled CDLs. While they can

1:29keep driving until their current license

1:30expires, they will not be able to renew

1:33it under these new rules. The FMCSA

1:35expects these drivers to leave the

1:37market within the following 2 years.

1:40This is what this means for you, owner

1:42operator. There will be a tighter

1:44capacity. The number of drivers

1:46available is shrinking especially in

1:48states like California and Texas where

1:51many of the drivers were based. So this

1:54rule will gradually shrink the driver

1:56pool overall. As a compliant owner

1:59operator, you might eventually be in a

2:01stronger position and you can be using

2:04this tighter capacity to be negotiating

2:06better rates eventually. And if you are

2:08hiring drivers, paperwork needs to be

2:11perfect. You must immediately check the

2:13actual visa status, not just the license

2:16of any new hire with the non-domicile

2:19CDL to make sure they meet the new and

2:21stricter FMCSA rules. The second huge

2:24news item today is the cost of your

2:26equipment. A new 25% tariff on imported

2:30heavy trucks goes into effect October

2:321st. This new tax will most likely raise

2:35the cost of new heavy duty trucks. Some

2:37industry warnings suggest that this

2:39tariff plus the existing federal excise

2:42tax could add tens of thousands of

2:44dollars to the price of a new tractor.

2:47This makes buying a new truck much

2:49harder for a small business. And the

2:50ripple effect, the government also

2:53announced new tariffs on furniture and

2:55pharmaceuticals, which could slow down

2:58freight demand, especially in those

3:00markets. And for your course of action,

3:02maintain your rig. If buying a new truck

3:05just got tens of thousands of dollars

3:06more expensive, your best bet is to make

3:09your current truck last longer. Focus

3:11heavily on preventative maintenance to

3:14keep your rig running and avoid the cost

3:16of a new truck. Protect your profit.

3:19Your business needs to be financially

3:21ready to handle these rising costs.

3:23Having a reliable factoring company on

3:25your side is crucial. Try to choose one

3:27with no hidden fees and top tier

3:30customer service. I’m going to leave a

3:32link to my suggestion in the description

3:33below. And if you want more quick

3:35updates like this, don’t forget to

3:37subscribe to This Week in Trucking’s

3:38free newsletter. We break down the best

3:41cities to pick up loads by equipment

3:43type, plus interviews with carriers

3:45sharing their real cost per mile and

3:47profits. And let me know in the comments

3:49if you think these new tariffs and rules

3:51will hurt or help the small carriers.

3:53Don’t forget to subscribe and drive

3:55safe.

Article By

Amy Chavez

Amy is the editor and producer of the This Week In Trucking podcast alongside managing social media content with a focus on providing helpful information and clear communication. She enjoys making content that informs and connects, helping audiences engage with stories that matter.

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