The U.S. Department of Transportation has withheld $73.5 million in federal highway funding from New York after the state refused to revoke nearly 33,000 commercial driver's licenses (CDLs) issued to immigrants. The action follows an audit revealing that more than half of 200 reviewed licenses had significant issues, including remaining valid after immigrants' authorization to stay in the U.S. expired.
Federal Action & Core Facts
Transportation Secretary Sean Duffy announced the funding freeze on Thursday, citing New York's failure to comply with federal regulations. The Federal Motor Carrier Safety Administration (FMCSA) ordered the state to review all non-domiciled CDLs and revoke those deemed illegal. Duffy stated the move was necessary to prevent "unvetted, unqualified foreign drivers" from operating on U.S. roads.
Deeper Dive & Context
Background on the Dispute
The federal government launched a nationwide review of immigrant CDLs in June 2025 after a fatal truck crash in Florida involving an immigrant driver. Most states have complied or are negotiating with the FMCSA, but California has already lost $200 million in funding. Pennsylvania, Minnesota, and North Carolina have also been warned about potential penalties.
New York's Response
Governor Kathy Hochul's administration has defended its licensing practices, arguing that New York follows federal law. A spokesperson called the funding freeze a "baseless attempt to attack blue states" and vowed to fight the decision. The state previously complied with audits during the Trump administration, which reportedly supported its practices.
Broader Implications
The dispute is part of a larger conflict between the federal government and states like New York and New Jersey over transportation funding. Duffy has also withheld $18 billion for a subway extension and tunnel project, citing concerns about diversity, equity, and inclusion (DEI) policies.
Immigrant Truckers' Role
Duffy has highlighted concerns about immigrant truckers' qualifications, including English proficiency. Immigrants account for about 20% of all truck drivers nationwide, but non-domiciled licenses represent only 5% of all CDLs, or roughly 200,000 drivers. New York issued 32,606 of these licenses.