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Trump Administration Cuts Funding to New York Over Truck Driver Licensing Dispute

4/17/2026, 12:02:18 AM

Federal Funding Withdrawal

The Trump administration has decided to withdraw $74 million in federal highway grants from New York due to the state's refusal to comply with federal demands regarding the licensing of immigrant truck drivers. The U.S. Department of Transportation (DOT) issued a letter to Governor Kathy Hochul's Department of Motor Vehicles (DMV), warning that continued non-compliance could result in an additional $147 million in withheld funding. The DOT's action stems from New York's failure to revoke commercial driver’s licenses (CDLs) held by non-residents with expired work authorizations.

Compliance Issues

The DOT's letter highlights that New York DMV has not acted on previous requests to assess approximately 32,000 CDLs held by non-residents, with a significant portion of these licenses having expiration dates that extend years beyond the lapse of their work authorizations. Federal Motor Carrier Safety Administration (FMCSA) Administrator Derek Barrs stated, “New York’s continued refusal to fix these failures undermines that mission, and we will not allow federal dollars to support a system that falls short of the law.”

New York's Position

In response, New York officials assert that the state is not legally obligated to comply with the federal demands. Following an order from the Trump administration, New York ceased licensing new non-resident commercial drivers in February. Hochul's spokesperson, Sean Butler, criticized the federal government's actions as politically motivated, claiming that New York adheres to federally issued rules in its licensing process. Butler emphasized that the FMCSA had not raised concerns about New York's CDL program during Trump's first term.

Implications of the Funding Cut

The funding cut comes amid heightened scrutiny of migrant truck drivers, particularly following several high-profile accidents. The DOT's actions are framed as a necessary measure to ensure safety on American roads, with Secretary of Transportation Sean Duffy stating, “I promised the American people I would hold any state leader accountable for failing to keep them safe from unvetted, unqualified foreign drivers.”

Criticism & Opposition

Critics of the funding withdrawal argue that it represents a broader pattern of the Trump administration targeting blue states. Hochul's administration has vowed to contest the federal government's decision, asserting that the funding is crucial for maintaining infrastructure safety in New York. The state maintains that it has complied with federal regulations in its licensing practices.

Conflicting Reports & Gaps

There are discrepancies in the reporting of the number of CDLs affected and the extent of New York's compliance with federal requests. While the DOT claims that many licenses are improperly issued, New York officials argue that they follow federal guidelines. The ongoing dispute raises questions about the legal obligations of states in relation to federal mandates on driver licensing.

Verbatim Quotes

  • “I promised the American people I would hold any state leader accountable for failing to keep them safe from unvetted, unqualified foreign drivers.” — Sean Duffy, U.S. Secretary of Transportation
  • “FMCSA is deeply disappointed by DMV’s refusal to take the necessary corrective actions set forth in the Preliminary Determination,” — Derek Barrs, FMCSA Administrator