❓WHAT HAPPENED: Transportation Secretary Sean Duffy threatened to withhold $73 million in federal highway funding from New York after an audit revealed over half of the state’s commercial trucking licenses were issued to foreign-born drivers living in the U.S. illegally.
👤WHO WAS INVOLVED: Transportation Secretary Sean Duffy, New York Governor Kathy Hochul (D), Federal Motor Carrier Safety Administration (FMCSA) Administrator Derek Barrs, and NYS DMV spokesman Walter McClure.
📍WHEN & WHERE: The audit findings were announced on Friday, with the issue centered on New York’s Department of Motor Vehicles.
💬KEY QUOTE: “When more than half of the licenses reviewed were issued illegally, it isn’t just a mistake—it is a dereliction of duty by state leadership.” – Sean Duffy
🎯IMPACT: New York has been given 30 days to respond and may lose significant federal funding if corrective action is not taken.
U.S. Department of Transportation (DOT) Secretary Sean Duffy warned on Friday that New York could lose $73 million in federal highway funding following a Federal Motor Carrier Safety Administration (FMCSA) audit. The audit revealed that 53 percent of sampled commercial driver’s licenses (CDLs) issued by the New York Department of Motor Vehicles (DMV) were unlawfully granted to foreign nationals residing in the U.S. illegally.
“When more than half of the licenses reviewed were issued illegally, it isn’t just a mistake—it is a dereliction of duty by state leadership,” Secretary Duffy said, adding: “Gov. Hochul must immediately revoke these illegally issued licenses. If they refuse to follow the law, we will withhold federal highway funding.”
The FMCSA audit reviewed 200 New York CDL records, finding that 107 licenses were unlawfully issued. In some cases, the DMV reportedly issued licenses based on expired lawful presence documents or defaulted to granting eight-year licenses to foreign commercial drivers without verifying their legal status. FMCSA Administrator Derek Barrs labeled the state’s practices a “grossly unacceptable deviation from federal regulations.”
However, New York officials are denying the allegations. DMV spokesman Walter McClure accused Sec. Duffy of political posturing, stating, “Secretary Duffy is lying about New York state once again in a desperate attempt to distract from the failing, chaotic administration he represents.” McClure insisted that the state complies with all federal regulations and reviews lawful status documents for all CDL applicants.
The Department of Transportation (DOT) has given New York 30 days to respond. In addition to revoking the illegally issued licenses, Duffy has urged the state to pause issuing new licenses or learner’s permits and conduct a comprehensive audit of its CDL program.
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