(NEW YORK) New York State could lose $73 million in federal highway funding after U.S. Transportation Secretary Shawn Duffy ordered an audit that, he says, found widespread problems in commercial driver’s licenses issued to immigrants. Duffy’s office reviewed 200 CDLs and concluded that more than half were “improper,” because the licenses lasted longer than the workers’ visas allowed them to stay employed.
The warning, announced around December 12, 2025, gives Albany 30 days to answer before the money can be pulled. State officials say the program is tightly regulated, and truckers and bus operators are watching the dispute closely now.
Federal warning, possible funding cut
Duffy tied the New York findings to a nationwide push, saying states must follow “long-standing rules” on who can hold CDLs and for how long.
“We will pull every dollar possible from every single state that’s unwilling to work… with this administration and these long-standing rules,” he said, arguing that families should not fear “an unqualified foreigner operating an 80,000lb big rig.”
The Department of Transportation has not released the full audit file, but the secretary’s letter put New York on notice that funding cuts are on the table. A formal response from New York is due by January 11, 2026.
Why the audits started
The audits began after a deadly crash in Florida that Duffy cited as proof states are allowing the wrong people to drive. In that case, Duffy says, an unauthorized immigrant truck driver made an illegal U-turn and hit another vehicle, killing three people.
Following that incident, the secretary ordered checks of bus and truck licensing records nationwide, even though the federal limits on license validity have existed for years. Transportation officials frame the effort as a safety review, but it also intersects with heated debates about immigration and work authorization in New York.
Political context and reactions
New York is the latest state threatened with lost federal highway funding; so far the states Duffy has publicly targeted are all led by Democrats. That pattern has led to accusations of partisan pressure.
- Duffy rejects claims the audits are political and insists they are safety-driven.
- Critics note the timing raises stakes for governors and state transportation agencies that rely on federal dollars for road and bridge work.
- The tactic also allows Washington to push for quick changes in state licensing practice without new legislation in 2026.
New York DMV response
A spokesperson for the New York State Department of Motor Vehicles pushed back, accusing Duffy of lying and saying the state follows federal standards that apply nationwide.
- Commercial licensing is largely set by federal rules; states issue CDLs within that framework.
- The audit’s central issue is licenses that allegedly continued past an immigrant’s work visa end date, which can mean a driver keeps a credential after losing work authorization.
- The DMV did not release its count of disputed files and has not said whether it will change practices.
Impact on immigrant drivers
For immigrant drivers, the dispute is not just paperwork:
- Many hold work visas tied to a specific employer that end on a fixed date.
- A license that outlasts that status can create risk during traffic stops or when changing jobs.
- Immigrants in New York’s freight and bus sectors say they already face repeated checks from employers and insurers.
Duffy’s audit claim could lead to cancellations of CDLs that people depend on to feed their families. The audit summary does not name any immigrant drivers whose records were reviewed, a lack of detail that has frustrated advocates and lawyers.
Federal rules and the core technical issue
Federal rules generally require states to:
- Check a driver’s lawful presence, and
- Limit certain CDLs to the period a noncitizen is allowed to work (often called “limited-term” licensing).
The Federal Motor Carrier Safety Administration, part of the U.S. Department of Transportation, outlines CDL requirements and state roles on its official site here.
Duffy’s allegation in New York is that the DMV let license terms run past visa end dates. That can happen if:
- Records are not updated, or
- States use different methods to track immigration documents.
Carriers say they need certainty when hiring drivers.
What’s at stake for New York
With the 30-day clock running, New York officials must decide whether to:
- Challenge the audit findings, or
- Change licensing procedures, or
- Do both.
Losing $73 million in federal highway funding could force delays in roadwork and safety upgrades, even if the dispute is mainly technical. Analysis by VisaVerge.com notes that fights over CDLs and immigration status spread quickly because states do not want to become test cases for federal penalties.
Duffy has said funding pressure is a tool that will continue. New York’s reply, expected by mid-January, may influence how closely other DMV offices tie license dates to visas going forward.
Broader consequences and uncertainties
The clash shows how a traffic safety issue can turn into an immigration fight. CDLs are both:
- Work tools, and
- Proof that a state has checked a person’s identity and training.
When Washington says a license was issued incorrectly:
- Employers may worry about liability.
- Drivers may fear being treated as unauthorized even if they once had valid work papers.
Duffy has not specified how many questioned New York licenses involved people who later extended visas, changed status, or became permanent residents. The audit description does not detail what documents were on file, leaving companies and drivers guessing.
What to expect next
In the coming weeks, New York’s response will likely address:
- Whether the DMV had to match license expiration dates to visa end dates for each driver, and
- Whether federal officials interpreted the records the same way.
Duffy’s department has signaled audits will continue nationwide, keeping pressure on states that issue many CDLs to foreign-born residents.
- For lawmakers in Albany: the risk is delayed paving, bridge fixes, and other projects funded by federal dollars.
- For immigrant drivers: the fear is that a letter from Washington could take away the job they trained for before errors can be corrected as the dispute plays out.
A federal audit found over half of 200 CDLs reviewed in New York were issued beyond visa end dates, prompting Transportation Secretary Shawn Duffy to warn $73 million in federal highway funding could be withheld. New York has 30 days to respond by Jan. 11, 2026. State officials dispute the findings, citing compliance with federal rules. The case ties vehicle-safety audits to immigration checks and could disrupt road projects, driver jobs and employer hiring certainty.
