NEW YORK STATE — New York filed a lawsuit on April 24, 2026, challenging the federal Transportation Department's decision to withhold nearly $74 million in highway funding. The department moved to withhold the money after New York refused to revoke nearly 33,000 immigrant commercial driver's licenses following an audit that uncovered problems last year.

New York Attorney General Letitia James said the state believes it properly followed all federal rules for commercial driver's licenses in place when they were issued and does not plan to revoke them. "By canceling this funding, the federal government is putting jobs and communities at risk. New Yorkers are counting on these investments, and we will not let the president jeopardize our communities' safety," James said.

Governor Kathy Hochul said, "Once again, New York is facing devastating federal cuts for nothing more than political payback." She added, "Ripping away money that goes toward critical safety upgrades on our roads is reckless and it is illegal."

Transportation Secretary Sean Duffy has sought to tighten rules for immigrant eligibility to obtain commercial driver's licenses and to ensure states enforce existing rules. Federal officials reviewed more than 200 immigrant commercial driver's licenses and found problems in more than half of them, including licenses that remained valid long after immigrants were no longer authorized to be in the country. Federal officials have reviewed records of non-domiciled commercial driver's licenses in every state.

California has lost $200 million in highway funding over concerns about its non-domiciled commercial driver's licenses and enforcement of English language requirements, and has filed its own lawsuit challenging Duffy's efforts. Pennsylvania, Minnesota and North Carolina have been warned they risk losing highway funding. Most states have either complied with the federal requirements or are in negotiations with the Federal Motor Carrier Safety Administration.

In summer 2025, the Trump administration announced it would begin enforcing existing rules requiring truck drivers to demonstrate English proficiency. In fall 2025, the Transportation Department proposed emergency restrictions on which noncitizens could obtain commercial driver's licenses, but a court placed those restrictions on hold because they had not undergone the normal rulemaking review steps. In February 2026, Duffy announced a final rule that had undergone proper vetting. Under that rule, only holders of H-2A visas for temporary agricultural workers, H-2B visas for temporary nonagricultural workers, or E-2 visas for noncitizens making substantial investments in a U.S. business may obtain a commercial driver's license.

Non-domiciled immigrant commercial driver's licenses represent about 5% of all commercial driver's licenses, totaling approximately 200,000 drivers. Immigrants comprise about 20% of all truck drivers.