New York filed a lawsuit on Friday to challenge the U.S. Transportation Department's decision to withhold nearly $74 million in highway funding because the state refused to revoke nearly 33,000 commercial driver's licenses (CDLs) issued to immigrants, following an audit that uncovered irregularities last year.
Legal Challenge Joins California's Action
The lawsuit places New York alongside California in opposing Transportation Secretary Sean Duffy's efforts to tighten rules on which immigrants can qualify for CDLs and ensure states enforce existing regulations. The federal government has not yet responded to the new legal action, but officials have highlighted significant flaws found in more than half of the 200 licenses reviewed, including licenses remaining valid long after an immigrant's authorized stay expired.
Background of the Dispute
The controversy gained prominence after an August crash in Florida, where a truck driver—whom Duffy stated should never have held a license—performed an illegal U-turn, resulting in three fatalities. California has already lost $200 million over concerns about its non-domiciled CDLs and enforcement of English language requirements for truckers. Other states, including Pennsylvania, Minnesota, and North Carolina, have also been warned of potential funding cuts. However, most states have either complied or remain in negotiations with the Federal Motor Carrier Safety Administration (FMCSA), which has reviewed non-domiciled CDL records nationwide.
New York's Position: 'Political Payback'
New York Attorney General Letitia James argued that the state followed all applicable rules when issuing the licenses and has no plans to revoke them. After reviewing all cases, state officials determined that all recipients were authorized to be in the country at the time of issuance, a point communicated to federal authorities in January. James described the funding cut as unfair, stating, "By canceling this funding, the federal government is putting jobs and communities at risk. New Yorkers are counting on these investments, and we will not let the president jeopardize our communities' safety."
Governor Kathy Hochul echoed this sentiment, noting that audits conducted during the first Trump administration confirmed New York's compliance with federal regulations. "Once again, New York is facing devastating federal cuts for nothing more than political payback," Hochul said. "Ripping away money that goes toward critical safety upgrades on our roads is reckless and it is illegal."
Broader Safety Efforts in Trucking
Beyond targeting unqualified drivers, Duffy has led initiatives to crack down on questionable trucking schools and pursue trucking companies that violate rules and then rebrand to continue operating. The Trump administration announced last summer that it would enforce existing rules requiring truck drivers to speak English proficiently, citing the importance of communication during traffic stops or accidents, especially regarding hazardous materials. Trucking industry groups have praised these efforts, arguing that unqualified drivers behind the wheel of 80,000-pound vehicles jeopardize highway safety and depress wages for law-abiding drivers by enabling companies to hire cheap immigrant labor.
Industry Calls for Accountability
Trucking trade groups have long advocated for greater accountability and stricter standards for establishing trucking companies. Previously, anyone willing to pay a few hundred dollars and provide proof of insurance could start a trucking firm, with questionable operators often escaping detection until FMCSA audits occur.
Immigrant Community Concerns
Immigrants constitute about 20% of all truck drivers, but non-domiciled CDLs—available only to immigrants—represent roughly 5% of all CDLs, or about 200,000 drivers. Immigrant groups argue that many drivers are being unfairly targeted, with attention focused on Sikh truckers after two fatal crashes involving Sikh drivers in Florida and California. Several groups have sued to block California's plan to revoke approximately 20,000 commercial licenses.
New Federal Rules
Last fall, the Transportation Department proposed emergency restrictions limiting which noncitizens could obtain CDLs, but a court halted the rules due to insufficient review. In February, Duffy announced a final, properly vetted rule tightening restrictions. Under the new rule, only holders of H-2a (temporary agricultural), H-2b (temporary nonagricultural), and E-2 (investor) visas may qualify for a CDL.
