New York State is currently facing a major dispute with federal authorities over its process for issuing Commercial Driver’s Licenses (CDLs) to immigrants. Federal transportation officials accuse the state of routinely issuing licenses that remain valid long after the holders’ legal residency status in the United States has expired.
This federal scrutiny extends to several other states and carries the threat of significant cuts to federal highway funding—amounting to millions of dollars—unless licensing systems are corrected and any defective licenses are revoked. New York officials, however, strongly deny any wrongdoing, insisting that the state fully complies with all federal regulations.
Federal Audits Raise Safety Concerns
This controversy stems from audits conducted by the U.S. Department of Transportation, which identified New York as one of eight states found to be issuing CDLs to immigrants in ways that may be flawed. Transportation Secretary Sean Duffy publicly stated that these issues pose a serious risk to national highway safety.
He noted that the audits uncovered not only licenses whose validity extended beyond a driver’s legal status, but also cases in which a driver’s immigration status may not have been properly verified prior to license issuance. Duffy emphasized that the initiative is solely focused on ensuring road safety and is not politically motivated.
Federal oversight intensified following a tragic accident in Florida last August involving an unauthorized truck driver that resulted in three deaths. Although the rules governing these licenses have been in place for years, the Department of Transportation has recently stepped up enforcement. In addition to New York, other states—including California, Pennsylvania, Minnesota, Texas, South Dakota, Colorado, and Washington—have received similar federal inquiries regarding their CDL issuance practices.
Walter McClure, a spokesperson for New York’s Department of Motor Vehicles, firmly rejected the federal allegations. He described Secretary Duffy’s statements about New York as inaccurate and a desperate attempt to divert attention from perceived failures within the federal agency itself. McClure reiterated that commercial driver’s licenses are federally regulated and that New York’s DMV consistently follows all federal guidelines.
This is not the first clash between New York and federal transportation officials; previous disputes have involved congestion pricing proposals and infrastructure funding allocations, with billions of dollars previously suspended over concerns related to diversity, equity, and inclusion principles.
The potential consequences of these federal actions are significant.
Funding at Risk Amid Growing Tensions
California, for example, has already revoked nearly 21,000 improperly issued commercial driver’s licenses following similar federal pressure. The Department of Transportation has threatened to withhold major federal highway funding from noncompliant states, including $73 million from New York, $182 million from Texas, and $160 million from California. While no state has yet lost funding, many are facing deadlines to correct their systems. Separately, California previously lost $40 million for failing to enforce English-language requirements for truck drivers.
Most of the states under investigation have publicly defended their practices, asserting compliance with federal rules. However, Secretary Duffy pointed to the high percentage of violations found in reviewed licenses in some states—along with what he described as defensive responses from state officials—as evidence of a systemic problem.
Trucking industry groups have largely supported efforts to remove unqualified and non-English-speaking drivers from the roads, viewing them as necessary steps to improve safety. In contrast, immigrant advocacy organizations have warned that these campaigns could lead to harassment of immigrant drivers and potentially push them out of the profession, even though immigrants make up a substantial share of the trucking workforce. These non-standard licenses, while representing a small fraction of total CDLs, account for a vital segment of the industry.