Overview:
Palauan citizens living in the United States under the Compact of Free Association can now apply for commercial driver’s licenses without needing temporary work visas, following a new federal exemption announced this month. The change is expected to open new employment opportunities in the transportation and trucking industries for Palauans across the U.S.
Federal exemption allows Palauan citizens to obtain CDLs without temporary work visas through 2031
KOROR, Palau (May 21, 2026) — The Embassy of the Republic of Palau in Washington, D.C. announced a major policy change this week that will allow Palauan citizens living lawfully in the United States under the Compact of Free Association to obtain commercial driver’s licenses without requiring temporary work visas.
The change follows the publication of a nationwide exemption by the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration, which took effect May 14 and will remain in place through May 14, 2031.
Under previous federal regulations, many state driver licensing agencies were unable to issue Commercial Driver’s Licenses, or CDLs, to non-U.S. citizens unless they possessed certain temporary visas, such as H-2A or H-2B visas.
Because Palauan citizens are permitted to live and work in the United States visa-free under the Compact of Free Association, many applicants reportedly faced denials or confusion at state Department of Motor Vehicles offices despite their lawful status.
The new exemption authorizes all state licensing agencies to issue Non-Domiciled Commercial Driver’s Licenses and Commercial Learner’s Permits to eligible Palauan citizens without requiring a visa.
The Palau embassy described the policy update as the removal of a long-standing barrier that had limited employment opportunities for Palauans seeking careers in commercial transportation and trucking industries across the United States.
To apply for or renew a CDL under the exemption, Palauan citizens must present a valid Republic of Palau passport and an Arrival/Departure Record, commonly known as Form I-94 or I-94A, showing lawful entry into the United States under the Compact of Free Association.
Applicants must also meet all standard state licensing requirements, including proof of residency, medical certification and completion of written and driving skills examinations.
The embassy cautioned that some local DMV offices may still be updating their systems and training staff because the federal exemption was issued only recently.
Palauan citizens encountering difficulties during the application process are advised to request a supervisor and refer DMV officials to Federal Register Document No. 2026-09622, listed under FMCSA Docket No. FMCSA-2024-0221.
The embassy said the policy change would expand access to employment and economic opportunities for Palauan citizens working and living in the United States.
Officials also acknowledged community members who advocated for the issue and worked with U.S. federal agencies to secure the exemption. (Source: Palau Embassy in Washington, D.C.
