A capacity crunch is already seemingly here in the trucking space, and a key culprit is a comprehensive suite of actions underway by the industry's national regulator. The Federal Motor Carrier Safety Administration (FMCSA) recently announced a crackdown on several truck driver-related areas it says are designed to make roads safer, including:
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Non-domiciled commercial driver licenses (CDL)
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Electronic logging device (ELD) manipulation
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Fraudulent driver training schools
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English-language proficiency (ELD) rules
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Motor carrier fraud
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Cabotage
Read on for a breakdown each of these efforts, why the FMCSA is taking aim at them now and how they're affecting truckload capacity (along with rates) today, and in the future.
1. FMCSA says safety is the top priority behind its actions
FMCSA (and U.S. Department of Transportation) officials are tying several enforcement actions to the idea of making roads safer - for drivers of trucks, cars and everything in between. U.S. Transportation Secretary Sean Duffy puts it this way:
"When we get on the road, we should expect that we should be safe. And that those who drive those 80,000-pound big rigs, that they are well-trained, they're well-qualified, and they're going to be safe."
According to the National Safety Council, 5,375 large trucks were involved in fatal crashes in 2023 (the most recent year of data), up 43% over 2013 (though down 8.4% compared to the prior year). Since 2016, the number of these vehicles involved in injury crashes was up 12% (though again, 2023 saw a 4.7% decrease vs. 2022).
2. What is the non-domiciled CDL rule? (FMCSA says 200,000 CDLs affected)
Definition:
The non-domiciled CDL rule is aimed at the approximately 200,000 truckers who hold them according figures provided by the FMCSA as of February 2026. In essence, a non-domiciled designation covers licenses issued to drivers who are not permanent residents but are legally authorized to work in the U.S.
The new rule narrows those who qualify for a non-domiciled CDL considerably, limited to specific visa categories (H-2A, H-2B, and E-2). That means drivers who'd used broader employment authorization documents previously would now be ineligible. States could in the past have their own verification (and designation) methods, but they're now required to fall in line with the federal rule.
When did the rule go into affect?
The new rulemaking on non-domiciled CDL was issued on on February 18, 2026 and took effect less than a month later, on March 16. That means any new non-domiciled CDL applicants since that date must qualify under the updated FMCSA guidance. The one caveat is, those who already have a non-domiciled CDL under the old rules are able to keep operating until that license's expiration date - which could be months or years down the road.
How Does This Impact Capacity?
The immediate capacity impact of the updated non-domiciled CDL rule is fairly minimal in terms of taking current license-holders off the road (as they're able to continue driving trucks up to when it expires). However, with drivers becoming less plentiful for other reasons, the fact that more restrictions are in place for prospective replacements means fewer new entrants under this category.
3. How bad is ELD fraud? (0 of 230+ new devices approved)
While it's difficult to say exactly how much ELD fraud has occurred in recent years, there's an industry consensus that it's most definitely happening. The idea behind electronic logging devices was simple: Replace the paper logging system that allowed for drivers interested in doing so to manipulate hours of service. However, many ELDs in use today also allow for manipulation by bad actors.
When fraud occurs, that gives carriers who engage in it a clear advantage over those following the rules. Meiborg Trucking President Zach Meiborg told FreightWaves in November that the difference amounts to a "two-platform" market, in which illegal operators may run double the number of allowable miles per week - shrinking their cost per mile in the process.
The cost difference is so much, according to Meiborg, that compliant fleets could lose $1,000 a month while non-compliant operators could be making $2,000 a month per truck. In the same piece, Silver Arrow Express Operating Manager Joshua Kreyer indicated at least 30% of trucks were engaging in ELD fraud at the time, making it hard for honorable small carriers to compete.
What was wrong with ELD certification?
Until recently, ELD certification was rather loose, with the requirement only being more of an honor system. In other words, ELD providers could "self-certify" by checking a box saying they'd follow the rules. Those interested in cheating could fully edit their logs after the fact or have them managed overseas. And when a bad ELD was caught, they'd simply come back with the same product under a different name and re-register it.
When will FMCSA fix the ELD problem?
FMCSA has been in the process of fixing ELD certification problems for a number of years, but more recently - in December, 2025 - it laid out what it called a "major overhaul" to the vetting. Those changes were designed, according to the administration, to block non-compliant devices before they get registered (and make re-registration much harder).
The key features rolled out then include:
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Initial review - Verification of contact information, technical specifications and device images
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Fraud detection - Cross-checking new applications against active, inactive, revoked and in-process lists
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Application categorization - Four categories, including Approved, Information Requested, Further Review and Denied
What has the overhaul done so far to fix the problem? The FMCSA says it's taken more than 56 devices off its list since January 2026 - moving them to "revoked" status. Additionally during that period, more than 230 new applications have been reviewed for entry onto the registry, and the FMCSA says none have been approved.
Relatedly, earlier this month (April 1, 2026), the Commercial Vehicle Safety Alliance (CVSA) released its 2026 North American Standard Out-of-Service Criteria, which includes amendments to conditions regarding false records of duty status and tampering with an ELD.
4. Why did FMCSA remove 7,000 driver training schools?
The driver training school certification process required self-certification, much like ELDs. The result, clear findings that plenty of these institutions said one thing, but did another to gain placement on the registry. In December 2025, DOT Secretary Duffy announced the agency removed nearly 3,000 CDL training providers from the Training Provider Registry (TPR) and placed another 4,500 on notice for failure to equip graduates with the skills necessary to safely operate.
More specifically, the removals, according to USDOT and FMCSA, were due to:
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Falsifying or manipulating training data
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Neglecting to meet required curriculum standards, facility conditions or instructor qualifications
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Failing to maintain accurate, complete documentation or refusing to provide records during federal audits or investigations
In some cases, there were stories of Zoom-type remote training offerings, or "two-day certification" opportunities - raising concerns about adequate preparedness for drivers operating heavy trucks. The registered list did also include a significant number of schools that were already no longer operating, so those were among the purged. Those placed on notice have 30 days to respond and provide evidence of compliance before being removed.
Taking it a step further though, the DOT announced in February 2026 that it was forcing 550 driver training schools to close after officials conducted nearly 1,500 site visits. Those visits, according to the agency, found violations including the use of unqualified instructors, failure to adequately test students and a variety of other safety issues.
Moving forward, FMCSA Administrator Derek Barr said recently he'd like to start fresh on a new registry, requiring every school to re-certify under new, to-be-determined standards to remain in operation and gain a place on the list.
5. What is English Language Proficiency enforcement?
Definition:
English-language proficiency (ELP) enforcement was an early initiative announced in May 2025 by the Trump Administration - the idea being, commercial drivers must be able to communicate in English to drive in the U.S.
Not to be confused with ELD, ELP requirements were updated in 2025 to enforce the piece that says:
"A driver that cannot read and speak the English language sufficiently to converse with the general public, to understand highway traffic signs and signals in the English language, to respond to official inquiries, and to make entries on reports and records is not qualified to operate a CMV in interstate commerce."
The focus on enforcing the requirement - with the idea of removing violators from the road - then began in earnest in June of that year. For the ensuing six months, more than 13,000 violations were issued. However, many of the violators were repeat cases, state-level enforcement varied and much of that enforcement occurred against out-of-state carriers passing through.
Still, reports indicate anywhere from 9,000 to 11,000 drivers may have been taken off the road related to ELP violations in 2025 (though an exact number is hard to nail down). On the state level, California was a target of USDOT's perception that they were not taking necessary enforcement actions. The department actually withheld funds from the state in October 2025, claiming it failed to comply with ELP standards.
Does this apply in border zones?
Border zones face a modified ELP requirement, mainly with a carve-out for drayage drivers. Essentially, if you're a driver local to a border area, you won't face removal for a lack of English-speaking ability (since many drivers do cross the border). However, if you drove a truck from another part of the U.S. and get stopped inside the border zone, you’ll face the same ELP enforcement standard as if you’d been pulled over anywhere else.
6. How big is the carrier fraud problem? (400-500 carriers at one PPOB)
With cargo theft reaching epidemic proportions in some circles, carrier fraud is an issue that FMCSA officials are taking seriously. At the Mid-America Trucking Show (in March 2026), FMCSA Administrator Barrs said the administration is looking hard at what he called "ghost offices," noting investigators are finding addresses listed as the principal place of business (PPOB) for 400-500 carriers.
Separately, Barrs told a group at March's JP Morgan Industrials Conference that they've also found upwards of 2,000 carriers operating out of P.O. Boxes, UPS Stores and Staples locations.
What are chameleon carrier networks?
When dozens (or hundreds) of trucking companies are tied to the same equipment, drivers and PPOBs, they're known as chameleon carrier networks. The "chameleon" moniker comes into play as they rotate names, ownership structures and/or registration numbers to stay ahead of enforcement actions, insurance hikes and negative public perception.
How does FMCSA track fraudulent addresses?
To track these fraudulent addresses, Barr told MATS attendees that FMCSA has attorneys and special investigators assigned to suss them out - saying "I'm coming for them." He stressed that each PPOB should have driver and vehicle files ready for inspection at all times for his investigators to prove their legitimacy.
The SAFE Act, introduced this year in Congress (and backed by the American Trucking Associations (ATA), is also taking aim at carrier fraud, with initiatives designed to target these entities in the registration process - directing FMCSA to create and use an advanced automation tool to flag suspicious registrations before USDOT numbers are issued.
7. What is cabotage and why is FMCSA cracking down?
Definition:
Cabotage occurs when foreign-based carriers make unauthorized point-to-point deliveries in a different country. These carriers use drivers who are not subject to the same regulations as U.S.-based entities - which can impact safety and accountability.
When it comes to North America, Mexico and Canada-based drivers are allowed to deliver loads originating in their home country to multiple U.S. locations, but cabotage has these drivers picking up and delivering in the U.S.
Some drivers have expressed concern that certain foreign-based carriers may handle these point-to-point loads not just occasionally, but for months at a time. This practice would in essence take away jobs from domestic carriers and hurt rates with their added capacity.
Recent enforcement results
Barrs recently outlined a joint cabotage enforcement operation between FMCSA and Customs and Border Protection (CBP) that netted 16 driver arrests and nine motor carrier referrals in a single day. In cases like this, drivers themselves are usually following carrier orders and are often unaware they're doing anything wrong. So Barrs stresses the carriers engaging in the practice are the real targets.
Drivers are able to report suspected cabotage through the CBP tip line online or by phone at (800) 232-5378.
8. What's coming next: FMCSA rulemakings by Summer 2026
The summer of 2026 is shaping up to be a busy one for the FMCSA. Administrator Barrs has indicated it's currently advancing roughly 10 rulemaking initiatives, aiming to publish Notices of Proposed Rulemaking by summer's end - at the latest.
The new planned rules include:
- Formally codifying English Language Proficiency standards
- Requiring English-only written CDL examinations
- Updating entry-level driver training requirements
- Revising ELD standards
- Modernizing the Unified Registration System
- Establishing new entrant training and testing requirements for carriers entering the market
In support of these - and already underway - enforcement efforts, FMCSA is adding 39 new investigator positions.
Barrs notes that previous training for these roles focused on traditional roadside inspection skills, but that element is shifting to state partners. Instead, new investigators will be equipped with deeper investigative capabilities, learning techniques like: how to ask more probing questions, how to map carrier networks, and how to uncover fraud that may not appear in standard inspections.
What this means for shippers
Shippers should take FMCSA enforcement efforts as almost entirely good news, as they should combine to both reduce fraud and take unqualified (and thus less safe) drivers off the road.
Will capacity tighten?
The negative to removing drivers (even if they are less qualified) is reduced capacity - something the truckload market has seen occurring for a number of months. There are also legitimate arguments that the fear of ICE intervention against drivers and some, perhaps less justified, traffic stops are keeping some drivers off the road. Regardless, the reduction in driver capacity is real, and the prime contributor to the trend of higher spot rates in early 2026.
Combined with elevated diesel prices, that's a recipe for higher freight costs for the foreseeable future. The hope is, once training protocols are firmly in place and schools are vetted, the pipeline of new, qualified drivers should be more reliable.
How should shippers vet carriers?
Carrier vetting matters now more than ever for shippers. The especially low spot rates showing up on the load board should always raise an eyebrow. Those carriers undercutting the market could very well be committing ELD fraud or acting as chameleons. Proper due diligence is not a nice to have, it's a must. That means checking credentials with the FMCSA of course, but better yet, working with trusted, long-term partners even if they cost a few bucks more.
Because even with the regulatory crackdown, failing to identify exactly which carrier is moving your freight means you could still be exposed to poor service outcomes and significant compliance risk.
Why intermodal reduces fraud exposure
While fraud can happen anywhere, intermodal mitigates many of the risks in the trucking market simply through its structure. The long-haul railroad portion of the intermodal journey has just a few options - the Class 1 railroads. And while there are many dray providers out there, shippers are less likely to fall victim to fraudulent drayage carriers thanks to the UIIA (Uniform Intermodal Interchange Agreement), which requires validation for access to rail and port equipment.
The UIIA, combined with the use of an experienced IMC who vets dray partners and has direct relationships with the railroads, protects shippers immensely. On the flipside, there are tens of thousands of truck carriers in the U.S. marketplace, so it's a simple fact that the opportunity for bad actors is greater. In sum, there are simply fewer ways for fraud to occur in intermodal compared to trucking.
If you need help finding reliable ways to move your freight - through intermodal or truck - our experts here at InTek are happy to assist. Just fill in our brief form, and we'll get right back to you with customized solutions designed for your business. For more information about InTek, or logistics and supply chain issues in general, check out our Freight Guides.
