This legislation seeks to significantly reduce freight fraud and theft across the United States by implementing a series of reforms to transportation regulations and enforcement mechanisms. It mandates the establishment of a Freight Fraud and Theft Advisory Committee to gather public input and recommend strategies for the Department of Transportation (DOT) to combat these issues. Additionally, it requires a Memorandum of Understanding between the DOT and the Attorney General to improve interagency coordination and information sharing regarding identified fraud and theft incidents. A major provision of the bill involves a comprehensive overhaul of the Federal Motor Carrier Safety Administration's (FMCSA) registration system. Over a five-year period, the bill phases out the use of MC numbers , transitioning all motor carriers, brokers, and freight forwarders to a unified USDOT number system. This change aims to streamline identification and enhance the integrity of the registration process, making it more difficult for fraudulent entities to operate. The bill introduces new measures to prevent fraudulent registrations, allowing the Secretary to withhold or revoke registrations for applicants or entities convicted of "covered felonies" related to motor carrier operations or commercial vehicle use. These felonies include transportation-related fraud, theft, or trafficking. Furthermore, it requires entities to notify the Administration of any ownership changes within 30 days, ensuring transparency and accountability in the industry. To strengthen driver qualifications and prevent fraud, the legislation mandates that states issuing Commercial Learner's Permits or Commercial Driver's Licenses to non-citizens or lawful permanent residents must verify work authorization and align license expiration with that authorization. It also requires states to submit monthly reports on CDL issuance and related actions to the Secretary of Transportation. The bill also enhances the Commercial Driver's License Training Provider Registry by requiring audits, establishing processes for expedited removal of fraudulent providers, and mandating that all providers register a principal place of business. The FMCSA Administrator is directed to develop automated systems to detect suspicious activity within the registration system, such as rapid changes or unusual patterns, and establish a process to review and address these flagged users. For confirmed fraud, the Administrator can remove entities from public view or suspend their operating authority. Additionally, the bill strengthens cabotage laws by prohibiting certain foreign-domiciled or foreign-controlled motor carriers and unauthorized alien drivers from engaging in point-to-point domestic cargo transport within the U.S., requiring an MOU between FMCSA and U.S. Customs and Border Protection for enforcement. The legislation establishes new criminal penalties for individuals who knowingly submit or use fraudulent certifications to engage in unlawful transportation, including fines and imprisonment. It also clarifies the definition of a "broker" to include persons who offer, negotiate, or arrange transportation for compensation, explicitly excluding those providing only financial, analysis, or accounting services. Finally, it requires foreign dispatch services to register as brokers, bringing them under regulatory oversight.