Transportation Secretary Sean Duffy is withholding $73.5 million in federal highway funding from New York, punishing the state for issuing thousands of commercial driver’s licenses to unvetted foreign drivers in direct violation of federal safety law.
Story Snapshot
- New York loses $73.5 million in federal highway funds for issuing CDLs to non-domiciled drivers, including illegal aliens
- Federal audit found a 53% failure rate in New York’s CDL program, with licenses issued regardless of expired legal status
- Multiple states including California, Washington, Oregon, and New Mexico face similar enforcement actions
- Trump administration launches nationwide CDL audit to crack down on “lawless” licensing practices endangering public safety
Federal Crackdown on Illegal CDL Issuance
Transportation Secretary Sean Duffy announced the Federal Motor Carrier Safety Administration is withholding $73,502,543 from New York for failing to revoke thousands of illegally issued commercial driver’s licenses and learner’s permits. The funding represents four percent of New York’s National Highway Performance Program and Surface Transportation Program Block Grant allocations. A December 2025 FMCSA audit exposed systematic failures in New York’s non-domiciled CDL program, with the state’s DMV defaulting to eight-year license terms for foreign drivers regardless of when their legal authorization to work expired.
Audit Reveals Alarming Compliance Failures
The December 12, 2025 federal audit found New York’s Department of Motor Vehicles maintained a 53 percent failure rate in sampled records for non-domiciled CDL issuance. Non-domiciled CDL programs allow drivers to obtain commercial licenses without establishing state residency, creating vulnerabilities in vetting procedures. New York’s system automatically issued lengthy license terms to foreign drivers, many of whom were illegal aliens or migrants with expired work authorizations. Despite FMCSA’s March 13, 2026 formal response demanding corrective actions, New York continued refusing to fix these dangerous failures.
SEAN DUFFY TO JACK POSOBIEC: We’re pulling funding from states that refuse to fix illegal CDL practiceshttps://t.co/jHl2DEhTpo
— Human Events (@HumanEvents) April 21, 2026
Nationwide Enforcement Pattern Emerges
New York joins California in losing federal transportation funding for similar CDL violations, with California forfeiting nearly $200 million. Secretary Duffy identified Washington, California, and New Mexico as additional states ignoring federal rules, calling their failures “despicable” during his announcement of a nationwide CDL licensing audit. The Trump administration frames this enforcement as essential to preventing unvetted, unqualified foreign drivers from operating commercial vehicles on American roads. FMCSA Administrator Derek Barrs stated the agency will not allow federal dollars to support systems that fall short of the law.
Public Safety Versus State Defiance
Secretary Duffy’s statement emphasized accountability for state leaders who endanger citizens through reckless licensing practices. He described Governor Kathy Hochul’s policies as “dangerous” and “anti-American,” promising to never stop fighting to keep families safe on roads. This represents a fundamental conflict between federal safety standards and state-level resistance to immigration enforcement priorities. The administration connects CDL compliance directly to broader border security concerns, arguing that proper driver vetting protects Americans from preventable accidents caused by unqualified operators behind the wheels of massive commercial vehicles.
Implications for Transportation Industry
The nationwide crackdown creates immediate consequences for commercial transportation operations and state highway funding. States face pressure to overhaul non-domiciled CDL programs or risk losing millions in federal infrastructure dollars. The commercial driving industry confronts potential driver shortages as licensing becomes more restrictive, though advocates argue proper vetting outweighs convenience. Commercial driving schools also face increased scrutiny, with some found bribing independent testers to pass failing students. The long-term impact may force fundamental reforms in how states verify driver qualifications and legal status before issuing licenses to operate hazardous commercial equipment.
Sources:
Trump’s Transportation Secretary Sean Duffy Slaps New York
