- A U.S. Postal Service ban on contract drivers with non-domiciled CDLs caused immediate, widespread service disruptions, forcing a reversal within days.
- USPS executives admitted they severely underestimated how many immigrant drivers their network relies on, calling the number of canceled trips “astronomical.”
- The incident serves as a stark warning for the entire trucking industry as the federal government moves to invalidate over 200,000 non-domiciled CDLs.
- This federal crackdown could remove over 5% of U.S. trucking capacity, potentially ending the current freight recession and sparking a severe capacity crunch.
USPS’s Botched Driver Ban Exposes Systemic Weakness
In a move that sent shockwaves through its logistics network, the U.S. Postal Service (USPS) recently attempted to enforce a ban on contractors using drivers who hold non-domiciled Commercial Driver’s Licenses (CDLs). The policy, aimed at aligning with evolving federal guidelines, backfired almost immediately, leading to a chaotic and swift reversal that has exposed a critical vulnerability in the nation’s mail delivery system.
The impact was instantaneous. Across the country, loads were canceled, trips were missed, and mail sorting facilities were delayed. The very drivers USPS relied on to run its vast linehaul network were suddenly barred, bringing parts of the system to a grinding halt.
An “Astronomical” Miscalculation
The fallout was so severe that USPS leadership was forced to reverse the ban within days. In a call with suppliers, Pete Routsolias, USPS SVP of Logistics, offered a frank admission of the misstep.
“We didn’t understand the magnitude of how many people were using non-domiciled CDLs, and quite honestly, the amount of omits was astronomical,” Routsolias stated. “And right now, I am not willing to impact service that bad… as of right now, you can go back to using non-domiciled CDL drivers.”
While USPS emphasized that other rules like English proficiency remain, the rushed reversal highlighted just how dependent the postal service—and by extension, the entire supply chain—has become on this segment of the workforce.
The Bigger Picture: A Federal Crackdown Looms
The USPS’s failed experiment is a direct consequence of a larger federal action. The Federal Motor Carrier Safety Administration (FMCSA) issued an emergency rule on September 29, 2025, to restrict and ultimately phase out non-domiciled CDLs over two years. These licenses, often issued to immigrants, have been flagged for widespread abuse and fraud after a DOT audit revealed over 200,000 were issued, with many states failing to verify proper work permits.
From Freight Recession to Capacity Crisis?
Ironically, the explosion of non-domiciled CDLs since 2019 has been a primary driver of what many call the “Great Freight Recession.” The influx of over 200,000 drivers and 310,000 trucks created a massive oversupply of capacity, depressing rates and putting immense pressure on carriers.
Now, the cure might be worse than the disease. The elimination of the non-domiciled driver pool threatens to abruptly remove over 5% of all truckload capacity from the market. Combined with other regulatory pressures, such as the English Language Proficiency (ELP) rule—which an industry executive estimated 10% of drivers could fail—the market is poised for a dramatic shift. The USPS’s blunder serves as the first real-world test of this scenario, and the results suggest a capacity crunch may happen far sooner than anyone expected.
Image Referance: https://www.freightwaves.com/postalmag/postal-daily-report/usps-tried-to-ban-contractors-from-using-immigrants-to-haul-mail-it-went-horribly-wrong