New York State Sues Federal Department of Transportation and FMCSA Over $73.5 Million Grant Loss
New York State has formally sued the U.S. Department of Transportation, the Federal Motor Carrier Safety Administration (FMCSA), and two officials over the loss of a $73.5 million federal grant. The dispute centers on whether the state's issuance of commercial driver's licenses (CDLs) to non-citizens meets federal standards.
Briefing Overview
- New York State hasfiled a lawsuitagainst the federal government and the head of the Department of Transportation over the loss of $73.5 million in funding. The dispute centers on whether the state complied with regulations in issuing commercial driver's licenses (CDLs) and learner's permits to non-residents.
- New York State says the U.S. Department of Transportation has pressured it for months to revoke some CDLs held by non-citizens, while the state argues that its issued licenses meet federal standards, including verification of legal immigration status.
- "New York State has always followed federal rules when issuing CDLs, and even the previous Trump administration confirmed this year after year," New York Governor Kathy Hochul said ina press release, adding that "withholding funds for critical road safety upgrades is a reckless and unlawful act."
In-Depth Analysis
Similar to New York, California is also facing the threat of losing $158.3 million in federal funding due to alleged noncompliance in issuing some CDLs to non-residents, and has alreadylaunched a legal challenge。
The threat of funding revocation originally stemmed from a statement by the Federal Motor Carrier Safety Administration (FMCSA), which said thatannual reviews showedthat several statesapproved CDLswith validity periods extending beyond the expiration dates of immigration documents.
New York State noted in its press release that the funding loss for these states would begin in fiscal year 2027, which started in October of this year. The funds support road maintenance, safety improvements, and infrastructure upgrades. New York has sued the U.S. Department of Transportation, FMCSA, Transportation Secretary Sean Duffy, and FMCSA Administrator Derek Bars in the U.S. Court of Appeals for the Second Circuit in New York.
Meanwhile,CaliforniaandFlorida's non-resident commercial driver groups have also filed lawsuits in local and federal courts, respectively, regarding interruptions to driving eligibility. In these lawsuits, drivers say their livelihoods have been affected as states attempt to comply with federal standards.
The federal government has previously stated that New York Statethousands of non-resident driversmay hold non-compliant driving credentials and has called on the state torevokethese licenses and permits.