Trump’s Transportation Secretary Sean P. Duffy Withholds $73 Million from New York
WASHINGTON, D.C. – U.S. Transportation Secretary Sean P. Duffy today announced that the Federal Motor Carrier Safety Administration (FMCSA) is withholding over $73 million from the State of New York for failing to revoke illegally issued non-domiciled commercial learner’s permits (CLPs) and commercial driver’s licenses (CDLs).
“I promised the American people I would hold any state leader accountable for failing to keep them safe from unvetted, unqualified foreign drivers. I’m delivering on that promise today by refusing to fund Governor Hochul’s dangerous, anti-American policies. My message to New York’s far left leadership is clear: families must be prioritized on American roads,” said U.S. Transportation Secretary Sean P. Duffy.
“FMCSA’s mission is safety. That means ensuring that every commercial driver on the road is properly vetted and qualified. 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,” said FMCSA Administrator Derek Barrs.
Reminder:
FMCSA’s audit of New York’s non-domiciled CDL issuance practices found numerous failures by the state of New York including:
- Out of 200 sampled records, 107 were issued in violation of federal law—a failure rate of over 53%.
- The DMV’s systems defaulted to issuing 8-year licenses to foreign drivers for non-REAL ID licenses, regardless of when their legal status expired.
Additional Information:
On December 12, FMCSA found that, following a nationwide audit of CDLs, the New York Department of Motor Vehicles (DMV) had been routinely issuing CDLs to foreign drivers illegally. The federal audit exposed a 53% failure rate in the records sampled, indicating a total collapse in the administration of New York’s non-domiciled CDL program.
On March 13, FMCSA issued a formal response refuting the state’s claims of compliance and reiterating that New York had failed to complete required corrective actions, including the immediate rescission of all noncompliant non-domicile CLPs and CDLs.
After the state’s continuous refusal to remove these dangerous drivers from the road, FMCSA has issued a final determination of substantial noncompliance and moved to withhold $73,502,543.This represents 4% of New York’s National Highway Performance Program and Surface Transportation Program Block Grant funds.
Grok Summary
New York's non-domiciled CDL situation with illegal immigration/foreign drivers involves systemic federal noncompliance in issuing commercial driver's licenses (CDLs) and commercial learner's permits (CLPs) to non-U.S. citizens ("non-domiciled" applicants), including cases tied to temporary immigration statuses, overstays, or undocumented individuals.
Brief Summary (from the linked DOT announcement and related facts)
On April 16, 2026, U.S. Transportation Secretary Sean P. Duffy announced that the Federal Motor Carrier Safety Administration (FMCSA) is withholding $73,502,543 (about 4% of New York’s National Highway Performance Program and Surface Transportation Block Grant funds) because New York refused to revoke illegally issued non-domiciled CDLs/CLPs.
An FMCSA audit of 200 sampled New York non-domiciled records found 107 (53% failure rate) violated federal law. The core issue: New York DMV’s system defaulted to issuing 8-year licenses (for non-REAL ID versions) regardless of when the applicant’s lawful presence, work authorization (e.g., Employment Authorization Document/EAD), or visa expired. This allowed foreign drivers whose legal status had lapsed—or who may have been undocumented—to continue operating commercial trucks.
New York has roughly 32,600–33,000 active non-domiciled CDLs (the highest or among the highest nationally). The state paused new issuances after the audit but refused full corrective action (revoking the flawed ones), leading to the final determination of “substantial noncompliance.”
Note on immigration link: This is distinct from New York’s 2019 Green Light Law (which applies only to non-commercial standard driver’s licenses and explicitly prohibits CDL use under it). The CDL violations involve federal FMCSA rules requiring proper verification of lawful U.S. presence and driving history for commercial licensing. Critics (including federal officials and some lawmakers) highlight cases of illegal immigrants or overstays obtaining NY CDLs (e.g., a “No Name Given” license issued to an Indian national arrested while driving commercially), plus anecdotal ties to fraud at driving schools or bribe schemes. Proponents/NY DMV maintain they followed prior guidance and that EADs were accepted as proof of eligibility.
Assessment: The situation created a documented safety gap—commercial drivers (operating large/hazardous vehicles) were not fully vetted for immigration status or out-of-country driving records, unlike U.S. applicants. FMCSA and the Trump DOT describe it as undermining national safety standards. New York was flagged as the “worst offender” in the nationwide audit. NY officials dispute the findings and cite prior compliance. The federal response includes new rules eliminating EAD reliance and requiring stricter checks (e.g., via SAVE system).
Estimated Cost of NY’s “Illegal CDL Funding” Over the Past 10 Years
There is no official government tally of the exact “cost” specifically for non-compliant non-domiciled CDLs, as the issue was not penalized until the recent audit/enforcement (2025–2026). The primary quantifiable federal “cost” is the withheld highway funding tied to CDL program compliance.
- The current $73.5 million withholding represents ~4% of NY’s annual NHPP + STBG apportionments (roughly $1.7–1.8 billion total for those programs in recent years).
- Non-domiciled CDL issuance has trended upward nationally over the past decade+, with NY holding a large share of active licenses (~32k+ now). The systemic default-to-8-years practice appears long-standing.
Rough estimate: Extrapolating the current annual penalty equivalent backward (assuming similar funding levels and persistent noncompliance over ~10 years, 2016–2026), the total federal highway funds at risk or effectively received despite the violations would be on the order of $600–750 million. (Using ~$60–75 million/year × 10 years; actual apportionments were lower pre-IIJA but still in the billions annually for NY highways overall.)
This is not money the state “spent on illegal CDLs” (DMV licensing is largely fee-funded), but rather the federal taxpayer-funded highway/bridge grants tied to CDL program certification that continued flowing without full enforcement until now. Additional unquantified costs include potential safety/economic impacts from any accidents involving improperly licensed drivers (anecdotal reports exist but lack comprehensive data). State-level administrative costs are minimal.
Caveats: This is an estimate based on current penalty levels and issuance trends; pre-2025 audits did not trigger withholding, per NY’s defense. Exact historical violation counts per year are not publicly detailed. If noncompliance was shorter-term or less severe earlier, the figure would be lower.
Sources
These focus on New York’s non-domiciled CDL audit failures, the Sean Duffy/FMCSA funding withholding, illegal immigration ties, specific cases of improperly issued licenses, and related safety concerns. Coverage is from major conservative-leaning outlets (Fox News, New York Post, Breitbart, Washington Examiner, etc.):
Fox News
• https://www.foxnews.com/politics/duffy-threatens-yank-new-york-federal-funds-over-illegally-issued-commercial-drivers-licenses (Dec. 12, 2025 – initial audit and threat to withhold funds)
• https://www.foxnews.com/us/dot-closes-major-commercial-trucking-loophole-blamed-illegal-immigrants-causing-fatal-crashes (Feb. 12, 2026 – broader rule changes tied to the NY/CA issues)
New York Post
• https://nypost.com/2026/04/16/us-news/trump-dot-yanks-73m-funding-from-ny-for-failing-to-vet-foreign-truck-drivers/ (April 16, 2026 – direct coverage of the final $73M cut)
• https://nypost.com/2025/12/12/us-news/dot-threatens-to-pull-73m-from-ny-after-audit-finds-half-of-commercial-trucking-licenses-went-to-illegal-drivers/ (Dec. 12, 2025 – audit exposure and Hochul response)
Breitbart
• https://www.breitbart.com/immigration/2026/04/17/trump-dot-chief-sean-duffy-pulls-73m-from-ny-for-giving-illegal-aliens-trucker-licenses/ (April 17, 2026 – reaction to the withholding)
• https://www.breitbart.com/border/2025/12/17/dhs-biden-released-chinese-illegal-alien-with-new-york-cdl-killed-tennessee-trucker-feds-blast-sanctuary-licensing-practices/ (Dec. 17, 2025 – specific NY CDL case involving a Chinese national)
• https://www.breitbart.com/border/2025/12/23/49-illegal-alien-cdl-holders-nabbed-at-border-checkpoints-as-feds-warn-state-over-massive-licensing-scandal/ (Dec. 23, 2025 – nationwide context including NY)
Washington Examiner
• https://www.washingtonexaminer.com/policy/infrastructure/4532913/sean-duffy-yank-73-million-new-york-cdl-dispute/ (recent coverage of the funding dispute)
These articles emphasize the safety risks, federal audit findings (53% failure rate in NY samples), Governor Hochul’s refusal to revoke licenses, and the Trump DOT’s enforcement actions. They are distinct from the official DOT pages and mainstream/neutral reporting.