DENVER, COLORADO — The Colorado Department of Motor Vehicles canceled 262 commercial driver’s licenses after an internal audit—prompted by federal findings—determined the licenses were issued out of compliance with federal rules, with the action coming after Transportation Secretary Sean Duffy warned the state could lose $24 million in federal funding over what he described as a delayed response to CDL violations.

A Colorado DMV spokesperson confirmed that the licenses were canceled following the internal audit. The cancellations followed Duffy’s warning last week that federal funding could be withheld for what he characterized as a slow response to a major violation of federal commercial driver licensing regulations.

Duffy cited a nationwide audit conducted in October that found about 22% of commercial licenses issued by Colorado to immigrants were issued out of compliance, including many to Mexican nationals, which he said is prohibited under federal law. The Colorado DMV spokesperson said that of the 262 CDLs canceled, 219 were issued to Mexican or Canadian asylees and refugees, and 43 others were determined to have been issued with other errors.

Duffy accused Colorado of “slow walking” the required revocation of the licenses. Colorado Governor Jared Polis described the situation as a case of “crossed wires” and said the state would take action.

The DMV said it has notified affected drivers, and said they can visit a DMV office without an appointment to obtain whatever credential they qualify for. The DMV also said drivers may request a hearing within 30 days.

The matter remains ongoing as the state and federal agencies continue addressing compliance requirements.

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