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New York Sues Trump Administration over Canceled Highway Funds Tied to Commercial Driver’s Licenses

Letitia James says the cut was arbitrary and illegal, and New York warns it could lose another $147 million a year.

  • On Friday, New York Attorney General Letitia James and Governor Kathy Hochul filed a lawsuit to block the U.S. Transportation Department from withholding more than $73.5 million in highway funding.
  • The Transportation Department withheld the funds after alleging New York issued commercial driver's licenses to non-citizens illegally, demanding the state revoke the permits.
  • Governor Hochul called the cut "political payback," while Attorney General James warned the loss endangers "the safety of motorists and pedestrians."
  • Transportation Secretary Sean Duffy defended the withholding, stating he was protecting residents from "unvetted, unqualified foreign drivers" and criticizing Governor Hochul's policies.
  • Federal authorities threatened to withhold an additional $147 million in future years, prompting state officials to seek an expedited ruling in the Second Circuit Court of Appeals.
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Los Angeles TimesLos Angeles Times
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New York filed a lawsuit on Friday to challenge the federal Department of Transportation's decision to retain nearly $74 million in highway funds because the state refused to revoke nearly 33,000 questionable business driver's licenses for immigrants, after an audit detected problems last year.

·Los Angeles, United States
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The spokesman-Review broke the news in Spokane, United States on Friday, April 24, 2026.
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