Trump Administration Moves to Withhold Federal Highway Funds From States Over Alleged Unlawful Commercial Driver’s License Practices

The Trump administration has escalated its confrontation with several Democratic-led states over commercial driver’s license (CDL) policies, warning that tens of millions of dollars in federal highway funding could be withheld from states found to be issuing licenses in violation of federal rules.

Transportation Secretary Sean Duffy said during a series of press remarks that a nationwide audit conducted by the Department of Transportation (DOT) identified widespread compliance failures related to so-called non-domiciled CDLs, particularly in New York.

According to Duffy, the administration’s goal is not partisan conflict, but enforcement of long-standing safety regulations governing who is permitted to operate large commercial vehicles on American roadways.

“Every dollar possible,” Duffy said, would be on the table if states refuse to bring their licensing practices into compliance with federal law.

What the administration alleges

At the center of the dispute are non-domiciled CDLs, which some states issue to non-citizens who are not permanent residents of that state. Federal law allows such licenses under specific conditions, including verification of lawful presence and work authorization.

Duffy claimed that a DOT audit found more than half of New York’s reviewed non-domiciled CDLs were issued unlawfully, asserting that:

– Licenses were granted for eight-year terms despite short-term work authorization
– Immigration or visa status was not consistently verified
– State DMVs issued licenses contrary to federal CDL duration rules

“Now, what New York does is, if an applicant comes in and they have a work authorization for 30 days, 60 days, one year, New York automatically issues them an eight-year commercial driver’s license,” Duffy said. “That’s contrary to the law.”

He further alleged that in some cases documentation was not properly checked at all before licenses were issued.

Federal safety concerns

DOT officials framed the issue primarily as a public safety concern, emphasizing the size and risk associated with commercial vehicles.

An improperly trained or unqualified CDL holder, they argue, may operate vehicles weighing up to 80,000 pounds, including tractor-trailers and motor coaches.

“If operated incorrectly or inappropriately, these vehicles are lethal weapons on American roadways,” Duffy said during a press conference.

Federal Motor Carrier Safety Administration (FMCSA) Administrator Derek Barrs echoed that view, calling the alleged violations “a dereliction of duty by state leadership” if substantiated.

New York given 30-day compliance window

According to DOT, New York has been formally notified and given 30 days to respond to the FMCSA enforcement action. The state is expected to:

– Conduct a comprehensive audit of its CDL program
– Revoke licenses determined to have been issued unlawfully
– Implement corrective measures to prevent future violations

If the state fails to comply, DOT officials say they are prepared to withhold federal highway funds, a step that could affect infrastructure projects and transportation budgets.

As of publication, New York Governor Kathy Hochul’s office had not responded publicly to requests for comment on the allegations.

Broader national implications

While New York was described as the “worst offender” in the audit, Duffy indicated that other blue states, including California, are also under review for similar practices.

The administration’s crackdown reflects a broader policy approach focused on:

– Strict enforcement of existing federal transportation rules
– Linking compliance to federal funding
– Reducing regulatory discretion at the state level
– Emphasizing road safety as a national security issue

DOT officials stressed that the effort is not intended to penalize states politically, but to ensure uniform standards nationwide.

A politically charged issue

The issue of licensing non-citizens has long been politically sensitive, intersecting with debates over immigration enforcement, state autonomy, and public safety.

Supporters of the administration’s stance argue that:

– Federal rules exist for a reason and must be enforced uniformly
– States should not extend license privileges beyond lawful authorization periods
– Public safety must take precedence over political considerations

Critics counter that:

– States face complex workforce and logistics challenges
– Audits must be transparent and independently verified
– Funding threats risk politicizing infrastructure investment

Legal experts note that while DOT has authority to condition funding on compliance, any withholding would likely face legal challenges, particularly if states dispute the audit’s findings.

Related safety incidents

During previous briefings, White House Press Secretary Karoline Leavitt cited individual cases to underscore safety concerns, including a fatal crash involving a commercial driver whose licensing status has been publicly questioned. Such references, officials say, highlight the stakes involved, though each case remains subject to its own legal process.

What happens next

Key developments to watch include:

– New York’s formal response to FMCSA within the 30-day window
– Publication of detailed audit findings
– Potential compliance agreements or corrective action plans
– Legal challenges if federal funds are withheld
– Expansion of audits to additional states

Conclusion

The Trump administration’s threat to withhold federal highway funds marks one of the most aggressive federal interventions in state CDL policy in recent years. By tying compliance directly to infrastructure funding, DOT is signaling that transportation safety standards will be enforced strictly and uniformly.

Whether the dispute ends in cooperation or court battles, the outcome will shape how states balance licensing authority, immigration considerations, and federal oversight — with significant implications for road safety and transportation governance nationwide.