Federal regulators have warned Pennsylvania it could lose up to US$151 million in transportation funding if errors in issuing non-domiciled commercial driver's licences are not corrected, reports New York's FreightWaves.

In a letter to Governor Josh Shapiro and PennDOT Secretary Michael Carroll, FMCSA (Federal Motor Carrier Safety Administration) chief Derek Barrs said an audit found eight licences issued in violation of federal rules. He ordered PennDOT to audit its programme, correct deficiencies, and reissue all non-compliant licences within 30 days.

Mr Barrs warned that failure to act could see US$75.5 million withheld in fiscal year 2027 and $151 million in subsequent years. He added that FMCSA could decertify Pennsylvania's CDL programme, halting issuance, renewal or transfer of licences until compliance is restored.

US Transportation Secretary Sean Duffy cited the arrest of a suspected terrorist who had obtained a Pennsylvania licence to stress the importance of strict audits for non-domiciled CDL holders.

PennDOT spokeswoman Alexis Campbell said the department paused issuing such licences after FMCSA's interim rule in September. She noted PennDOT cooperated fully with the audit, which reviewed 150 cases without finding any ineligible licence holders.

Ms Campbell added that PennDOT uses the federal SAVE database to verify legal presence for all non-citizen applicants and prioritises roadway safety. The department is reviewing FMCSA's letter and will respond within the required timeline.