Non-Domiciled CDL Integrity Act

The Non-Domiciled CDL Integrity Act (HR5688) was introduced on October 3, 2025, and referred to the House Committee on Transportation and Infrastructure. It was subsequently referred to the Subcommittee on Highways and Transit on December 1, 2025. On March 18, 2026, the Subcommittee on Highways and Transit was discharged, and the bill underwent committee consideration and mark-up, where it was ordered to be reported (amended) by a vote of 35-26. The bill is currently reported out of committee and awaiting floor action in the House. This bill amends title 49, United States Code, to restrict the issuance of commercial driver's licenses (CDLs) to non-domiciled individuals. Specifically, it requires non-domiciled applicants from foreign jurisdictions (excluding Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands) to have lawful immigration status and a visa directly connected to an employment-based reason to hold a CDL. The bill does not authorize or appropriate any specific funding amounts; its impact is regulatory, by altering the eligibility criteria for CDLs. The primary structural losers are trucking and logistics companies, including $JBHT, $ODFL, $XPO, $UPS, and $FDX, as the bill exacerbates the commercial driver shortage. This will increase their labor costs and operational expenses, leading to higher freight rates. Consumer-facing companies like $WMT, $AMZN, and $COST, which rely heavily on efficient supply chains and transportation for their goods, are also negatively impacted by increased freight costs, which can translate to higher consumer prices. There are no clear structural winners identified by this legislation. In the past week (7-day change), $JBHT is up +6.15%, $ODFL is up +6.55%, $XPO is up +10.04%, $UPS is up +2.33%, and $FDX is up +5%. Over the past 30 days, these companies have seen mixed performance: $JBHT is down -3.97%, $ODFL is down -4.03%, $XPO is down -0.53%, $UPS is down -6.64%, and $FDX is down -3.89%. Consumer companies $WMT, $AMZN, and $COST have seen 7-day changes of +2.66%, +5.89%, and +2.2% respectively, and 30-day changes of +2.82%, -2.81%, and +3.66%. The recent positive 7-day performance for transportation and logistics companies does not yet reflect the full potential impact of this bill, which is still awaiting floor action. The bill's passage would likely introduce further upward pressure on operational costs for these companies. The next legislative step is a vote on the House floor. Key takeaways: - The Non-Domiciled CDL Integrity Act (HR5688) restricts CDL issuance for non-domiciled individuals. - This bill is currently reported out of committee and awaiting floor action in the House. - The legislation is expected to worsen the commercial driver shortage, increasing labor costs for transportation and logistics companies. - Higher freight rates are anticipated, impacting operational expenses for logistics providers and consumer goods prices.