New York Loses $73.5 Million in Federal Funding After Refusing to Revoke 33,000 Questionable Non-Domiciled CDLs — "I Will Hold Any State Accountable," Duffy Says; Governor Hochul Vows to Fight: "We Will Win"
NEW YORK — The U.S. Department of Transportation announced Thursday it is withholding more than $73.5 million in federal funding from New York after the state refused to revoke nearly 33,000 questionable commercial driver's licenses issued to immigrants following a federal audit that uncovered widespread problems.
The audit reviewed 200 non-domiciled CDLs and found that more than half had significant issues — including licenses that remained valid long after an immigrant's authorization to be in the country had expired. The federal government ordered New York to review all such licenses and revoke illegal ones. The state has not complied. New York issued 32,606 non-domiciled CDLs in total.
"I promised the American people I would hold any state leader accountable for failing to keep them safe from unvetted, unqualified foreign drivers. I'm delivering on that promise today," said Transportation Secretary Sean Duffy.
National Context
The federal government has reviewed non-domiciled CDL records in every state since Duffy put a spotlight on the issue following an August crash in Florida that killed three people. Most states have complied or are in negotiations with FMCSA. California has already lost $200 million. Pennsylvania, Minnesota, and North Carolina have been warned they are at risk of losing funding.
Duffy noted that immigrants account for approximately 20% of all truck drivers nationwide but that non-domiciled CDLs represent only about 5% of all commercial driver's licenses — approximately 200,000 drivers total. New rules announced by the Transportation Department will prevent 97% of those foreign drivers from obtaining a commercial license again.
New York's Response
New York officials have defended their licensing practices, saying they comply with federal law and pointing to audits during the first Trump administration that supported that position. Governor Kathy Hochul's spokesman Sean Butler called the action part of a broader pattern. "This continues a yearlong pattern of Secretary Duffy threatening to withhold money that keeps our roads, subways, and other infrastructure safe for New Yorkers. We will fight back, and once again we will win," Butler said.
This is not the first time DOT has withheld or threatened to withhold funding from New York under the Trump administration. Duffy previously put a hold on $18 billion for a Manhattan subway extension and Hudson River tunnel project. The Trump administration agreed Thursday to restore funding for the subway project. A judge ordered the tunnel funding to continue in February. Duffy also threatened to pull funding over congestion pricing and subway crime — both of which New York fought in court and won.
Industry and Advocacy Response
Trucking industry groups praised the enforcement action. "These enforcement actions will remove bad actors from the road and restore accountability to the system. Today's action is an important step toward safer highways and a stronger, more professional trucking industry," said OOIDA President Todd Spencer.
Immigrant advocacy groups, however, say some drivers are being unfairly targeted. The spotlight has fallen heavily on Sikh truckers — the driver in the Florida crash and the driver in a separate fatal crash in California in October are both Sikhs.
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Having followed this developing situation, I believe it's important to consider how this impacts both public safety and immigrant truck drivers. The issue revolves around non-domiciled CDLs, licenses issued to immigrants who live out-of-state or whose legal status may have changed. The federal audit highlighting invalid or questionable licenses is a crucial wake-up call for ensuring licenses are up-to-date and valid. From my experience in the transportation sector, driver qualifications aren't just about paperwork; they directly influence road safety. Therefore, the federal government's effort to tighten rules and hold states accountable seems well-founded. However, there is also a human side: many immigrant truck drivers depend on these licenses for their livelihoods. They contribute significantly to the economy and the trucking industry nationwide. The controversy surrounding New York's response illustrates the complexity of balancing immigration policies, public safety, and legal compliance. Governor Hochul’s resistance suggests confidence in New York’s practices, but the federal withholding of funds highlights the urgency to address audit findings. Interestingly, this situation ties into broader national trends. Other states like California have also faced funding losses for similar reasons, indicating a systemic challenge in managing non-domiciled CDL issuance across the U.S. The data showing immigrants account for 20% of truck drivers but only 5% hold non-domiciled CDLs points to an important distinction in how licenses are issued and tracked. For trucking companies and safety advocates, removing unqualified drivers helps foster safer highways. But for immigrant advocacy groups, the concern is avoiding unfair targeting, especially of minority communities like Sikh truckers who have been notably affected. Ultimately, ongoing dialogue between the federal government, states, industry stakeholders, and immigrant communities is essential. Clear, consistent policies that ensure proper vetting without discrimination are needed. For those of us interested in transportation safety and immigrant rights, it’s vital to stay informed as New York and others navigate these challenges and regulatory changes.
