DOT threatens to pull $73M from NY after audit finds half of commercial trucking licenses went to illegal drivers
WASHINGTON — On Friday, Transportation Secretary Sean Duffy warned that he could pull $73 million in federal highway aid from New York unless the state fixes a troubling licensing issue uncovered by the Federal Motor Carrier Safety Administration (FMCSA).
The FMCSA examined 200 commercial driver‑license (CDL) files from New York’s Department of Motor Vehicles and found that 53 % were issued to foreign‑born drivers who were in the United States illegally. “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 told reporters. “Gov. Hochul must immediately revoke these illegally issued licenses. If they refuse to follow the law, we will withhold federal highway funding.”
The secretary gave the governor and her team a 30‑day window to respond. A Department of Transportation press release said that 107 of the 200 sampled licenses were unlawful. According to the report, the New York DMV has routinely issued eight‑year licenses to foreign drivers without a REAL ID, regardless of whether their legal status had expired, and has also relied on expired lawful‑presence documents when granting CDLs.
New York’s DMV spokesperson, Walter McClure, rejected the FMCSA’s criticism. “Here is the truth: Commercial Drivers Licenses are regulated by the Federal Government, and New York State DMV has, and will continue to, comply with federal rules. Every CDL we issue is subject to verification of an applicant’s lawful status through federally‑issued documents reviewed in accordance with federal regulations. This is just another stunt from Secretary Duffy, and it does nothing to keep our roads safer. We will review USDOT’s letter and respond accordingly,” he said.
FMCSA Administrator Derek Barrs also weighed in on the audit. “The 2025 CDL audit uncovered that New York DMV’s license‑issuing practices are a grossly unacceptable deviation from federal regulations that have compromised the integrity of the state’s CDL program,” he added. “New York must act immediately to comprehensively audit its CDL program and revoke every single illegally issued license.”
The state now faces a decision: suspend new CDL issuance and launch an internal audit, or risk losing a substantial portion of federal highway funding.
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