Non-Domiciled CDL Rule to Cause Reduction of Transportation Capacity? "Not-so-fast, my friend!"

On October 10, 2025, the D.C. Circuit Court of Appeals ordered a "stay" of the FMCSA's interim final rule entitled "Restoring Integrity to the Issuance of Non-Domiciled Commercial Drivers Licenses (CDL)" that was published on September 29, 2025.

The interim final rule effectively prevented states from issuing CDLs to individuals domiciled outside of the United States. The "stay," ordered in response to two separate Emergency Motions for Stay in cases petitioning for review of the FMCSA's interim final rule, pauses the FMCSA's rule. Next, the D.C. Circuit will rule on the merits of the plaintiffs' Petitions: Whether the interim final rule was passed consistent with the federal Administrative Procedures Act (APA). The APA sets requirements for federal agency rulemaking.

After the interim final rule was published, many folks expected a fairly significant decrease in capacity in an oversaturated market. Transportation providers saw this as a good thing. Of course, for shippers - less capacity typically means increased rates.

What does the stay mean for shippers?

Well, we'll have to wait on the D.C. Circuit's ruling on the merits of the Petitions to find out if there will be a reduction in capacity. You can follow this case by following Shippers Interest Consulting.

About Shippers Interest Consulting: Shippers Interest Consulting is focused on helping shippers mitigate risk and protect profits related to their transportation and warehousing vendors. Shippers Interest Consulting is owned and operated by Tyler Biddle, a transportation attorney and consultant who has spent years working with shippers, freight brokers, motor carriers, and warehouses on transportation and warehousing-related issues.  You can learn more about Shippers Interest Consulting at www.shippersinterestconsulting.com and by following us on LinkedIn.