The U.S. Department of Transportation withheld $73,502,543 in federal highway funding from New York on April 16, 2026. Transportation Secretary Sean Duffy ordered the cut because New York refused to revoke 32,606 questionable commercial driver’s licenses issued to non-domiciled immigrants.
A Federal Motor Carrier Safety Administration (FMCSA) audit examined 200 sampled non-domiciled CDL and learner’s permit records from the New York DMV. It found:
- 107 failures, a 53.5 percent violation rate.
- The state issued these licenses without proper verification that holders maintained legal work authorization.
- Many licenses remained active years after the drivers’ immigration status expired.
New York issued the bulk of these invalid permits nationwide. Federal rules under 49 CFR § 384.212 require states to issue non-domiciled CDLs only to drivers with valid temporary legal presence tied to their work authorization. New York ignored this standard and kept the licenses active despite repeated federal demands.
The Trump administration first flagged the problem in a December 2025 preliminary determination. FMCSA gave New York 30 days to respond and fix the issues. State officials submitted a response in January 2026 and attended an informal conference in February but rejected every corrective action. They:
- Refused to review the full list of 33,000 licenses.
- Refused to revoke the invalid ones.
- Refused to implement new verification processes.
Secretary Duffy stated the refusal created a direct safety risk on interstate highways. These drivers operate heavy trucks across state lines with credentials that no longer meet federal standards. One invalid license on the road endangers every American driver sharing that pavement.
The withheld money equals four percent of New York’s National Highway Performance Program and Surface Transportation Block Grant allocations for fiscal year 2027. The funds are now unavailable to the state and cannot be reprogrammed for other uses. Additional penalties, including possible full decertification of New York’s entire CDL program, remain on the table if compliance does not occur.
New York’s DMV defended its practices by claiming compliance with state law and pointing to older audits. Those defenses collapsed under the current FMCSA review. The audit exposed systemic failures in how the state handles foreign applicants who lose legal status but retain commercial driving privileges.
.@SecDuffy: 53% of Commercial Driver's Licenses issued to foreigners in New York were issued illegally.
— Rapid Response 47 (@RapidResponse47) April 19, 2026
We gave them FOUR MONTHS to comply with the law. They refused, so we had no choice but to pull funding — and if they still refuse, we can pull their ability to issue CDLs. pic.twitter.com/Y34iGN0U2Z
This action forms part of a broader enforcement push. The Trump DOT uses funding leverage to force states back into line with federal safety rules that protect the supply chain. Immigrant truckers make up roughly 20 percent of the national workforce. When states hand them invalid credentials, the entire system weakens.
New York’s refusal directly funds the consequences. The $73.5 million cut hits:
- Road and bridge repairs.
- Transit projects.
- Infrastructure maintenance.Every delayed project traces back to Albany’s decision to protect invalid licenses over public safety.
The federal government will continue withholding until New York revokes every non-compliant license and proves substantial compliance. No appeals or extensions change the timeline.
The rule is clear: follow federal law or lose the money.
This enforcement ends the era where sanctuary policies override highway safety standards. New York now pays the direct price for shielding unqualified foreign drivers on American roads.
