Compliance PolicyIndustry ContextWednesday, September 23, 20264 min read

Some judicial skepticism of non-domiciled rule in Lujan arguments

Freightwaves13d ago
Some judicial skepticism of non-domiciled rule in Lujan arguments
Executive Summary

A federal appeals court showed skepticism toward DOT/FMCSA's non-domiciled CDL rule in Lujan vs. FMCSA oral arguments (Sept 2026), which restricts immigrant truck drivers from obtaining CDLs by narrowing acceptable documentation to passports and I-94 forms only, excluding Employment Authorization Documents.

Why It Matters

This is a regulatory shift in trucking labor supply that feeds directly into freight rate volatility — a persistent margin pressure point for sellers managing FBA inbound costs and DTC fulfillment.

Operator Take

If the court strikes down or limits the FMCSA rule, it could expand the CDL-eligible driver pool and ease freight capacity constraints — but a ruling upholding restrictions could tighten available carrier capacity and push spot rates higher. Sellers reliant on LTL or truckload freight should monitor rate benchmarks on DAT or Freightwaves SONAR over the next 60-90 days.

Decision Snapshot

Operational Impact

This story may require teams to revisit workflows, monitoring, or platform assumptions.

Bottom Line

CDL rule court battle could tighten freight capacity and lift shipping costs.

Source Lens

Industry Context

Useful background context, but lower-priority than direct platform, community, or operator intelligence.

Impact Level

low

CDL rule court battle could tighten freight capacity and lift shipping costs.

Key Stat / Trigger

10-year driving history lookback required under federal CDL rules

Focus on the operational implication, not just the headline.

Relevant For
SellersBrands

Full Coverage

The normal level of judicial skepticism and questioning of attorneys last week in the oral arguments in Lujan vs. FMCSA. seemed to show more of that probing toward the counsel for the Department of Transportation than the other side. In oral arguments before the U. S.

Court of Appeals for the District of Columbia, it was Simon Jerome arguing for DOT who appeared to face more pushback than his counterpart for the Lujan side of the divide, Wendy Liu.

Liu was representing a coalition of groups opposed to recent Federal Motor Carrier Safety Administration changes regulating the issuance of CDLs and commercial learner’s permits (CLPs) to non-domiciled drivers. King County, Washington is a plaintiff in the action and made arguments before the justices. window. googletag = window.

googletag || {cmd: []}; googletag. cmd. push(function() {var gptSlot = googletag. defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668545404-0'). defineSizeMapping(gptSizeMaps. banner1). addService(googletag. pubads()); googletag. pubads(). enableSingleRequest(); googletag. pubads().

collapseEmptyDivs(); googletag. enableServices(); setInterval(function() {if (! document. hidden) {googletag. pubads(). refresh([gptSlot]); } }, 30000); }); googletag. cmd. push(function() {googletag. display('div-gpt-ad-1709668545404-0'); }); Lead plaintiff Jorge Rivera Lujan is a DACA immigrant, defined as a child brought to the U. S.

by his or her parents and still in the U. S. DACA recipients have no special waiver under the non-domiciled CDL rule. Second time around for lawyer It was the second time in September that Jerome gave oral arguments before the court over an issue involving CDLs. The other was in the case of California vs.

DOT, where the issue is the federal government’s ability to strip funding from states over their adherence to federal rules on CDL issuance. Jerome summed up the heart of the two key parts of the new rule, which went into effect in the spring.

“One is a change in the substantive eligibility to apply for and obtain a non-domiciled CDL,” Jerome said in the oral arguments, a reference to the sharp narrowing of the acceptable immigration standards needed to qualify. “The other is the change in the acceptable documentation by which an immigrant may show that eligibility.”

Jerome said those steps were taken by FMCSA to close a “safety gap that stemmed from the inaccessibility of foreign driving records. That is the problem that the agency was responding to.” Federal rules on obtaining a CDL require a driving history that spans 10 years.

In its briefs on the case, the federal argument has been that obtaining that 10-year lookback is too challenging for states when they choose to issue a non-domiciled CDL. The acceptable documentation in the new rule for a non-domiciled person to obtain a CDL has been narrowed to an unexpired passport and a form I-94.

Employment Authorization Documents (EADs) are no longer accepted as proof of eligibility. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {var gptSlot = googletag. defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').

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display('div-gpt-ad-1665767553440-0'); }); Was a change needed? Almost right off the bat after Jerome’s opening arguments, he was asked by a member of the three-judge panel why previous requirements for a non-domiciled driver to obtain a CDL were insufficient and required an overhaul.

The I-94 is a record “that shows you entered the United States legally in a specific visa status and how long you are allowed to stay,” according to a definition of the document. “Most travelers receive an electronic I-94 that can be viewed online using their passport information.” The passport/I-94 combo brought pushback from the three-judge panel.

One judge said if a non-domiciled applicant could provide 10 years of driving history, “what’s the problem?” (Note: transcripts and audio recordings of the oral arguments FreightWaves used in its reporting do not specify the identity of the individual judges who are questioning the attorneys.) window. googletag = window. googletag || {cmd: []}; googletag.

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Key Takeaways

Check your freight carrier contracts now — if spot rates rise due to driver shortages, locked contract rates become your hedge. Lock in lane agreements before any ruling.

In the next 30 days, audit your inbound freight lead times and add 3-5 buffer days to replenishment orders if you ship via truckload from regions with high non-domiciled driver populations.

Original Source

This briefing is based on reporting from Freightwaves. Use the original post for full primary-source context.

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