DOT Withholds $73.5 Million from New York Over License Violations

The U.S. Department of Transportation announced Thursday that it is withholding $73.5 million in federal highway funding from New York state after determining the state failed to revoke thousands of commercial driver's licenses issued to foreign nationals in violation of federal regulations.

The Federal Motor Carrier Safety Administration, part of the DOT, conducted an audit last year reviewing 200 nondomiciled commercial driver's licenses issued by New York. Officials found that 107 of them, or 53.5 percent, were issued illegally, often because the state's Department of Motor Vehicles defaulted to eight-year terms for non-REAL ID licenses regardless of the recipients' legal status expiration dates. The agency ordered New York in a December 2025 notice to begin revocations by March 13, 2026, but stated the state did not complete the required corrective actions.

Transportation Secretary Sean Duffy said the decision prioritizes public safety on roadways. "I promised the American people I would hold any state leader accountable for failing to keep them safe from unvetted, unqualified foreign drivers," Duffy said in a statement. "I'm delivering on that promise today." Federal Motor...