Washington, DC (April 18, 2026)

Transportation Secretary Sean Duffy intensified the federal government’s dispute with New York over commercial driver’s licenses issued to non-resident drivers, warning that billions in funding and even the state’s licensing authority could be at risk if it does not comply with federal standards.

Duffy said a federal audit found that 53% of commercial driver’s licenses issued to foreign nationals in New York did not meet federal requirements. According to the Transportation Department, states are typically given 30 days to correct such issues, but New York was granted four months to review and potentially revoke licenses issued outside federal guidelines.

Despite that extended timeline, Duffy said the state has not taken the requested corrective steps, prompting the federal government to withhold $73 million in highway funding. He added that additional funding could be pulled in the coming months if the issue remains unresolved.

The dispute centers on federal safety and compliance rules governing who is eligible to receive a commercial driver’s license, particularly for non-domiciled or temporary-status drivers. Federal officials argue that failure to properly vet and regulate these licenses poses a risk to roadway safety and undermines national standards.

Duffy also signaled that the consequences could go beyond funding cuts. If New York does not bring its licensing practices into compliance, the federal government could move to revoke the state’s authority to issue commercial driver’s licenses altogether, a step that would have major implications for the trucking industry and interstate commerce.

New York officials have pushed back against the federal position, setting up a high-stakes standoff between Albany and Washington. The outcome could determine not only the fate of millions in infrastructure funding, but also how far the federal government is willing to go to enforce transportation rules at the state level.

.@SecDuffy: 53% of Commercial Driver's Licenses issued to foreigners in New York were issued illegally.

We gave them FOUR MONTHS to comply with the law. They refused, so we had no choice but to pull funding — and if they still refuse, we can pull their ability to issue CDLs. pic.twitter.com/Y34iGN0U2Z

— Rapid Response 47 (@RapidResponse47) April 19, 2026