Welcome to your June 2026 Compliance+ Regulatory Update. Each month, we compile the most important regulatory developments, enforcement trends, and compliance reminders so you can stay ahead of the curve. As always, reach out to us with any questions about how these updates affect your operation or how we can help!
1. SCOTUS Rules in Montgomery v. Caribe: What Carriers and Brokers Need to Know
One of the most significant liability decisions affecting trucking in recent memory has arrived. The Supreme Court's ruling in Montgomery v. Caribe Transport addressed whether a freight broker's failure to vet a carrier's CSA scores could give rise to negligent hiring liability.
Here's what the ruling means practically:
The FAAAA safety exception has real but limited reach. The Court confirmed that the Federal Aviation Administration Authorization Act's preemption clause does not automatically shield brokers from all negligent hiring claims. State tort claims grounded in safety, specifically, claims that a broker failed to exercise reasonable care in selecting a carrier, can survive federal preemption challenges in certain circumstances.
CSA scores & other metrics are now squarely in the vetting conversation. The decision reinforces that attorneys and plaintiffs will scrutinize a broker's carrier selection process, including whether they reviewed FMCSA's Safety Measurement System (SMS) data before tendering a load. For carriers, this means your roadside metrics are now, more than ever, a business development and liability factor.
Carriers with elevated metrics face increased freight access risk. Brokers who take this ruling seriously will tighten their carrier qualification standards. If your compliance metrics are elevated, proactively investing in improvement is no longer optional, it's a competitive necessity.
For a full analysis of what this ruling means for your operation, read our in-depth breakdown: What SCOTUS's Montgomery Decision Means for Carriers. If your BASIC scores need attention, our team can help — visit our CSA improvement resources or contact our consulting team.
Action Item: Pull your current SMS scores and identify any elevated BASICs. Review your DataQs appeal history and challenge any inaccurate violations. If you are a broker or use broker relationships, revisit your carrier qualification policies in light of this ruling.
2. FMCSA Escalates Feud with California — $160M in Federal Funding Withheld
The federal-state standoff over non-domiciled CDL enforcement has reached a new financial flashpoint. FMCSA has announced it is withholding $160 million in federal highway safety funding from California, escalating a dispute that began with the state's announcement that it would cancel approximately 13,000 non-domiciled CDLs — but has been slow to execute on that commitment.
The situation is fast-moving and carriers need to stay current:
California's CDL cancellation timeline remains unclear. Despite announcing the 13,000 CDL cancellations in prior months, California has not completed those revocations on a consistent schedule. This creates a dangerous compliance gray area: a driver may believe their CDL is valid while a revocation is pending.
$160M in withheld funding reflects federal seriousness. FMCSA is using its funding leverage under 49 CFR §384.405 to compel state compliance. The withholding follows the earlier $73.5M penalty against New York for similar failures. Read the full story: FMCSA Escalates Feud with California; Withholds $160M in Federal Funding.
Carrier obligation under 49 CFR §383.23 is unchanged. Regardless of the outcome of state-federal litigation, you must verify that every driver holds a valid CDL issued by their state of domicile. A CDL under review or subject to a pending revocation still represents a qualification risk.
Action Item: Run fresh MVRs on any drivers holding California CDLs, particularly those who may have obtained their license while domiciled elsewhere. Do not assume California's timeline aligns with your annual review cycle. For deeper context on the non-domiciled CDL landscape, see our earlier coverage of California's 13,000 CDL cancellations and FMCSA's clarifying guidance on the final rule.
3. Iowa's English Proficiency Bill: What SF 2426 Means for Carriers Operating in the State
Iowa's English proficiency legislation, SF 2426, has continued progressing through the state legislature and is drawing national attention as a potential model for other states. If enacted, the law would impose state-level English proficiency enforcement standards for commercial drivers operating in Iowa — going beyond current federal requirements under 49 CFR §391.11(b)(2).
Key points for carriers:
The federal standard already exists — but enforcement has been inconsistent. Federal regulations require that CDL drivers be able to read and speak English sufficiently to understand traffic signs, respond to official inquiries, and make legible entries in required records. Iowa's law would add a state enforcement mechanism with teeth, including potential out-of-service consequences at roadside.
Carriers with drivers who operate in Iowa should evaluate their qualification files now. If a driver cannot satisfy the English proficiency standard, it may constitute a disqualifying condition under both federal and state law.
This could trigger a national trend. Several other states are monitoring Iowa's bill closely. Carriers operating in multiple states should watch for similar legislation emerging in 2026–2027.
For a complete breakdown of SF 2426 and what it means for your fleet, read: Iowa English Proficiency Law Progresses Through State Legislature: What SF 2426 Means for Carriers.
Action Item: Review your driver qualification files for English proficiency documentation. Ensure your hiring and onboarding process includes a clear assessment of this federal requirement. If you operate in Iowa, monitor the bill's progress for a final effective date.
4. FMCSA Moving to Tighten ELD Self-Certification: What's Coming
Following the May Roadcheck's focus on ELD tampering and hours-of-service compliance, FMCSA has signaled it intends to tighten the ELD self-certification process — the mechanism by which ELD manufacturers certify their own devices as compliant with 49 CFR Part 395, Subpart B.
What you need to know:
The current self-certification model has been criticized for years. Unlike some safety-critical technology sectors, ELD manufacturers currently self-certify compliance without independent third-party verification. FMCSA has been under congressional and industry pressure to add an objective technical review layer.
Proposed changes could require third-party testing. The agency is exploring a framework that could require ELD manufacturers to demonstrate compliance through an accredited testing body rather than through self-attestation alone. This would have implications for the list of registered ELD devices and potentially require re-certification of some currently listed devices.
Carriers using currently registered ELDs are not immediately at risk — but you should monitor any communications from your ELD vendor about certification status. If your device is removed from the FMCSA-registered list, you would need to transition to a compliant device within the grace period provided.
For earlier coverage of this development, see: FMCSA to Tighten ELD Self-Certification Process.
Action Item: Confirm your ELD provider is currently listed on the FMCSA registered ELD device list. Ask your vendor directly about their plans for third-party testing compliance if and when the rule is finalized. Maintain internal ELD training records to demonstrate driver competency with the device.
5. MOTUS System: What Carriers Should Be Doing Now
FMCSA's MOTUS (Modernization of Operating and Transportation USDOT Systems) initiative — the agency's overhaul of its carrier registration infrastructure — continues its phased rollout through 2026. While full deployment is still in progress, there are concrete steps carriers should be taking now to avoid disruption when the system goes live for their registration type.
Here's where things stand:
MOTUS replaces the legacy MCMIS and Licensing & Insurance systems. The new platform is designed to unify USDOT registration, operating authority, and insurance filings into a single modernized portal. When fully live, it will change how you update your MCS-150, manage your operating authority, and interact with state registration systems.
Data accuracy is critical before migration. FMCSA has been clear that legacy data will be migrated into MOTUS. If your current USDOT record contains errors — stale insurance information, incorrect fleet size data, outdated principal address — those errors will carry over. Now is the time to clean up your record.
Biennial MCS-150 updates are still required on the current schedule. Do not use MOTUS as a reason to delay your required biennial update. Penalties for non-compliance under 49 CFR §390.19 are still being enforced on the existing system.
For a full carrier preparation guide, see: FMCSA's MOTUS System: 2026 Rollout To Transform Registration Process.
Action Item: Log into FMCSA's current portal and review your USDOT record for accuracy — fleet size, operation type, cargo classification, and insurance information. Correct any discrepancies now. Assign a staff member to monitor FMCSA communications for your carrier category's MOTUS migration timeline.
6. Mid-Year Driver Qualification File Audit: Your June Checklist
We're at the midpoint of 2026, which makes June an ideal time to conduct a proactive driver qualification (DQ) file audit before the second half of the year. Compliance reviews triggered by accidents, complaints, or roadside violations often surface DQ file deficiencies that could have been caught and corrected well in advance. Don't wait for an audit to find what you should already know.
Your June DQ file checklist should include:
Annual MVR pulls. Every CDL driver must have an MVR in their file reflecting the prior 12-month period under 49 CFR §391.25. Pull MVRs now for any driver whose last MVR is approaching the 12-month mark, and pay particular attention to drivers with non-domiciled CDL history.
Medical certificate currency. Confirm that all CDL drivers have current medical examiner's certificates on file, and that those certificates appear correctly on their driving records (or that a physical certificate is on file for drivers in NRII waiver states).
Clearinghouse annual queries. Confirm your annual query cycle is complete for all CDL drivers.
Previous employer verification completeness. Under 49 CFR §391.23, you must obtain and document responses from previous employers covering the prior three years of CMV employment. Document your good-faith efforts for non-responsive employers.
If your DQ files have gaps, our Audit Readiness program can help you identify and correct deficiencies before an examiner does. You can also find downloadable DQ file templates and checklists in our compliance shop.
Action Item: Assign a compliance team member to conduct a full DQ file review for every driver by June 30. Document the review, note any deficiencies, and set deadlines for correction. A proactive audit now is far less costly than a compliance review finding later.
