New York Loses $73M in Federal Funds Over CDL Failures

The state failed to revoke illegally issued commercial driver's licenses, according to federal officials.

Apr. 17, 2026 at 12:39am

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A dynamic, abstract painting of a commercial truck speeding down a highway, with overlapping geometric shapes and vibrant colors conveying a sense of motion and urgency around the issue of unqualified commercial drivers.A fractured, high-energy illustration captures the tensions over unqualified commercial drivers on America's roads.NYC Today

The Federal Motor Carrier Safety Administration is withholding $73 million in federal funds from New York due to the state's failure to revoke commercial driver's licenses (CDLs) that were issued illegally. An audit found over 50% of a sample of 200 CDLs were issued in violation of federal law, with New York defaulting to eight-year licenses for foreign drivers regardless of their legal status expiration.

Why it matters

This funding cut highlights ongoing issues with unqualified and potentially unsafe commercial drivers on the road, which has been a concern for trucking associations and safety advocates. It also reflects tensions between state and federal authorities over licensing rules and enforcement.

The details

According to federal officials, New York failed to revoke 'illegally issued nondomiciled commercial learner's permits and commercial driver's licenses.' An audit found 107 out of 200 sampled records, or 53.5%, were issued in violation of federal law. New York had been defaulting to eight-year licenses for foreign drivers with non-REAL ID licenses, regardless of their legal status expiration.

  • On Dec. 12, the federal agency ordered New York to begin revoking the illegally issued licenses.
  • On March 13, the motor carrier administration said New York failed to complete the required corrective actions.

The players

Sean Duffy

U.S. Department of Transportation Secretary who said New York failed to keep the public safe from 'unvetted, unqualified foreign drivers'.

Derek Barrs

Administrator of the Federal Motor Carrier Safety Administration, who said the agency's mission is to ensure all commercial drivers are properly vetted and qualified.

Kathy Hochul

Democratic Governor of New York whose administration is losing $73.5 million in federal highway funds due to the CDL issues.

Todd Spencer

President of the Owner-Operator Independent Drivers Association, who applauded efforts to eliminate loopholes for unqualified drivers.

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What they’re saying

“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.”

— Derek Barrs, Administrator, Federal Motor Carrier Safety Administration

“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.”

— Sean Duffy, U.S. Department of Transportation Secretary

“These charges are a baseless attempt to attack blue states, because as everyone knows New York simply follows federally-issued rules when issuing commercial drivers licenses, something that even the Trump administration has acknowledged.”

— Sean Butler, Spokesperson, Office of Governor Kathy Hochul

What’s next

Litigation could be in the offing, as Hochul's administration has previously challenged the Trump administration over withheld funding for the Second Avenue Subway project.

The takeaway

This funding cut highlights ongoing concerns over unqualified commercial drivers on the road, which has been a major issue for trucking associations and safety advocates. It also reflects the tensions between state and federal authorities over licensing rules and enforcement.