ALBANY, New York — New York is facing the potential loss of $73 million in federal highway funding after U.S. Transportation Secretary Sean Duffy accused the state of improperly issuing commercial driver’s licenses (CDLs) to immigrants whose legal status did not qualify them for long-term credentials.

According to Duffy, a recent Federal Motor Carrier Safety Administration (FMCSA) audit found that more than half of 200 sampled non-domiciled CDLs—licenses issued to non-U.S. citizens—were granted in violation of federal law. Many were valid for eight years, even when the driver’s work authorization expired much sooner. Investigators also found cases where licenses were issued using already expired immigration documents, and that New York could not prove status verification for approximately 32,000 active non-domiciled CDL holders.

Duffy warned that unless New York immediately revokes the improperly issued licenses and halts all issuance or renewal of non-domiciled CDLs, the federal government will withhold funding.

“When more than half of the licenses reviewed were issued illegally, it isn’t just a mistake — it is a dereliction of duty by state leadership,” Duffy said. “Gov. Hochul must immediately revoke these illegally issued licenses.”

New York officials strongly rejected the accusation. DMV spokesperson Walter McClure said the state is complying with all federal requirements and accused Duffy of misrepresenting the facts.

“Secretary Duffy is lying about New York State once again… New York State DMV has, and will continue to, comply with federal rules,” McClure said.

The federal crackdown follows several high-profile cases nationwide where immigrants lacking proper work authorization were found driving commercial trucks, including fatal crashes. Duffy has issued similar threats to California, Pennsylvania, and Minnesota, prompting California to revoke 17,000 licenses earlier this year.

Trucking groups, including the Owner-Operator Independent Drivers Association (OOIDA), praised the federal action, calling it long overdue and necessary for highway safety.

New York has 30 days to comply with the federal directive or risk losing millions in federal transportation funding, according to FMCSA and USDOT findings.

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