The U.S. Department of Transportation warned Illinois it risks losing $128 million in federal highway funding unless the state revokes commercial driver's licenses improperly issued to noncitizens.

On February 17, 2026, the Federal Motor Carrier Safety Administration announced audit results showing nearly 20% of a sample of Illinois non-domiciled CDLs violated federal rules. The review examined records of foreign nationals, including Kyrgyz, Nigerian, and Moldovan citizens, whose licenses were granted despite expired employment authorizations or insufficient documentation verifying lawful U.S. presence.

Transportation Secretary Sean Duffy sent a letter to Governor JB Pritzker and Driver Services Director Kevin Duesterhaus demanding immediate action. The state must halt new issuances and renewals of non-domiciled CDLs, identify and revoke noncompliant ones, and perform an internal audit within 30 days. Failure to comply could lead to withholding funds from the National Highway Performance Program and Surface Transportation Block Grants for fiscal year 2027, totaling up to $128.6 million, or even decertification of Illinois' entire CDL program.

"I need our state partners to understand that they work for the American people, not illegal immigrants who broke the law illegally entering our country and continue to break it by operating massive big rigs without the proper qualifications," Duffy wrote.

Illinois Secretary of State Alexi Giannoulias pushed back against the findings. His office maintains that its processes are substantially compliant, having adopted the Systematic Alien Verification for Entitlements program ahead of federal requirements and added safeguards for documents. Giannoulias argued the FMCSA overlooked automatic extensions for employment authorizations valid until October 2025. The state plans to review the audit, but condemned the funding threat as harmful to trucking and agriculture.

"A strong economy depends on strong logistics. If trucks don’t move, supply chains fail, prices rise, and families feel it in their pocketbooks," Giannoulias said.

The action follows similar FMCSA warnings to California, New York, Pennsylvania, and North Carolina as part of a Trump administration crackdown on non-domiciled CDLs prompted by an executive order. Officials cite safety risks from unqualified drivers on U.S. roads.

As of March 2, 2026, Illinois has not announced compliance steps or revocations, with roughly two weeks remaining in the ultimatum period. The dispute highlights tensions between federal immigration enforcement and state licensing practices amid ongoing national debates over migrant labor in trucking.