Sean Duffy yanks $73 million in federal funding to New York over CDL dispute

Transportation Secretary Sean Duffy announced Thursday that the government is withholding millions in federal funding to New York, due to concerns that it is violating regulations on granting trucking licenses to noncitizens.

The Federal Motor Carrier Safety Administration is withholding $73.5 million in highway funding due to accusations that New York failed to revoke illegally issued nondomiciled commercial learner’s permits and commercial driver’s licenses, according to Duffy. The development comes after Duffy threatened in December 2025 to revoke the funding if Gov. Kathy Hochul (D-NY) did not address the Trump administration’s concerns.

“I promised the American people I would hold any state leader accountable for failing to keep them safe from unvetted, unqualified foreign drivers,” Duffy said in a statement. “I’m delivering on that promise today by refusing to fund Governor Hochul’s dangerous, anti-American policies.”

The secretary said the funding represents 4% of New York’s National Highway Performance Program and Surface Transportation