US Trucking Faces Crisis from Foreign Labor and CDL Fraud

A surge in non-domiciled commercial driving licenses, English-language loopholes, and inexpensive short-term foreign labor is disrupting US freight economics, according to American Shipper.

Former Arkansas carrier owner Cliff Bates revealed widespread issues with fraudulent CDLs, manipulated electronic logs, and an influx of transient drivers from Eastern Europe, South Asia, and Central Asia who accept lower freight rates. He noted that this trend followed federal policies allowing non-English-proficient drivers to remain on the road and permitting foreigners to obtain non-domiciled CDLs since 2019.

Bates highlighted state-level data showing significant spikes in CDL issuances between 2021 and 2024, coinciding with declining rates and increasing capacity. A Department of Transportation audit has identified at least 200,000 non-domiciled licenses nationwide. Although new issuances have been halted, existing licenses remain valid, a policy Bates argues poses risks to road safety.

Grace Maher, chief operating officer of OTR Solutions, stated that the national debate incorrectly focuses on border-state drivers rather than short-term foreign workers who enter for a few months, undercut rates, and then leave. She emphasized that American drivers of all backgrounds cannot compete when brokers prioritize the lowest offers.

Both Bates and Maher warned that fraud, double-brokering, and offshore dispatching are exacerbating the downturn. Bates cited ICE roadside operations in several states that flagged between 20 and 30 percent of trucks for fraudulent or non-domiciled CDLs or visa issues. He shared that his own 140-truck fleet collapsed after losing millions due to shrinking long-haul demand and persistently low rates.

They both expressed concern that the crisis threatens broader economic stability, arguing that safe roads and a fair market are at risk unless enforcement tightens and fraudulent operations are eliminated.