Duffy Pulls $73M in NY Funding Over Undocumented Driver's Licenses

Transportation Secretary says New York 'completely rejected' DOT cooperation on illegal CDL issue.

Apr. 17, 2026 at 5:19am

Got story updates? Submit your updates here. ›

A dynamic, fragmented painting of a car license plate in shades of blue, grey, and red, conveying the political tensions surrounding undocumented driver's licenses.The federal crackdown on states issuing driver's licenses to undocumented immigrants has sparked a political clash with significant implications for transportation funding and public safety.NYC Today

Trump's Transportation Secretary Sean Duffy has pulled over $73 million in Federal Funding for New York state amid a dispute over the state issuing commercial driver's licenses to undocumented immigrants. Duffy criticized New York Governor Kathy Hochul, claiming the state 'actually gave commercial driver's licenses to people who were in the country illegally' and rejected the Department of Transportation's offer to cooperate on the matter.

Why it matters

The dispute over undocumented immigrants receiving commercial driver's licenses has become a flashpoint between Republican and Democratic-led states. Duffy's move to pull federal funding from New York is part of a broader effort by the Trump administration to crack down on states they view as not cooperating with federal immigration enforcement.

The details

Duffy shared clips of an interview with Fox News where he said New York 'completely rejected' the DOT's offer to cooperate on the issue of issuing commercial driver's licenses to undocumented immigrants. He then announced the DOT was 'pulling $73 million from Hochul's New York,' adding that 'American families deserve to be SAFE on the road.' Duffy also suggested there could be more funding cuts in the future.

  • On Thursday, Duffy shared the information on social media platform X.

The players

Sean Duffy

Trump's Transportation Secretary who has pulled $73 million in federal funding from New York over the state's policy of issuing commercial driver's licenses to undocumented immigrants.

Kathy Hochul

The Democratic Governor of New York whose state had its federal funding cut by Duffy over the undocumented driver's license issue.

Gavin Newsom

The Democratic Governor of California who previously criticized Duffy's allegations against states over undocumented driver's licenses as a 'sad and pathetic attempt' to spread false information.

Department of Transportation (DOT)

The federal agency that offered to cooperate with New York on the undocumented driver's license issue, but which New York 'completely rejected' according to Duffy.

Got photos? Submit your photos here. ›

What they’re saying

“the truth is that they actually gave commercial driver's licenses to people who were in the country illegally”

— Sean Duffy, Transportation Secretary

“a 'sad and pathetic attempt' to spread false information”

— Gavin Newsom, Governor of California

What’s next

Duffy suggested there could be more federal funding cuts for New York in the future if the state does not cooperate with the DOT on the undocumented driver's license issue.

The takeaway

This dispute over undocumented immigrants receiving commercial driver's licenses has become a partisan flashpoint, with Republican-led federal officials like Duffy taking punitive actions against Democratic-led states they view as not cooperating on immigration enforcement. The outcome could have significant implications for transportation funding and public safety in affected states.