Core Insights - The regulatory shift regarding non-domiciled Commercial Driver's Licenses (CDLs) was driven by safety concerns, highlighted by multiple fatal crashes involving non-domiciled CDL holders in 2025 [1] - The Federal Motor Carrier Safety Administration (FMCSA) introduced stringent new requirements for the issuance and renewal of non-domiciled CDLs, impacting approximately 200,000 licenses [3][1] - Highway, a firm specializing in freight fraud mitigation, has launched a feature that allows brokers to screen out carriers employing drivers with non-domiciled CDLs, addressing liability concerns [4][7] Regulatory Changes - The new rule limits eligibility for CDLs to holders of specific visa types, excluding around 194,000 drivers, including DACA recipients and asylum seekers [2] - The FMCSA's interim final rule mandates annual in-person renewals and immediate revocations for non-compliant issuances, with states risking federal highway fund losses for non-compliance [2] Industry Response - A temporary stay by the U.S. Court of Appeals has paused the enforcement of the new rule, allowing states to revert to previous issuance practices [5] - Insurers are increasingly scrutinizing carrier rosters, with some denying coverage for fleets employing non-domiciled drivers due to heightened liability risks [5] Highway's New Feature - Highway's feature enables brokers to filter carriers based on the domicile status of their primary account owner, aligning with FMCSA mandates [7] - The feature is optional, allowing brokers to override it for trusted carriers, aimed at enhancing compliance and reducing legal exposure [10] Market Implications - The introduction of this feature may phase out non-domiciled driver employment, as it enhances compliance with FMCSA regulations and insurer requirements [11] - Critics argue that cost considerations may outweigh compliance efforts, potentially impacting the market dynamics [12] - The exclusion of carriers employing non-domiciled drivers could lead to reduced capacity in spot markets, exerting upward pressure on freight rates [14][15] Strategic Considerations - The current court stay provides temporary relief, but proactive measures by insurers indicate a broader industry trend towards compliance [16] - Stakeholders are advised to monitor legal proceedings and assess carrier networks for compliance, as the future of Highway's feature remains contingent on regulatory outcomes and industry adoption [16]