Federal Government Withholds $73M From New York Over CDL Issuance Violations

Key Details The U.S. Department of Transportation announced it will withhold approximately $73 million in federal funding from New York State over improper commercial driver's license issuance practices. The FMCSA cited the state's failure to revoke illegally issued non-domiciled CDLs and commercial learner's permits issued to foreign nationals and non-residents. Why It Matters A December audit found that more than 50% of non-domiciled CDLs issued in New York violated federal law. Of 200 sampled records, 107 were determined to have been issued illegally, with many going to foreign drivers without verified proof of lawful U.S. presence. FMCSA Administrator Derek Barrs stated that New York's refusal to correct these failures would not be tolerated. What's Next New York has disputed the FMCSA's findings and declined to take corrective action, claiming the determination lacks legal merit. The funding withhold stands as federal pressure on the state to comply with licensing requirements. Simultaneously, a separate federal lawsuit in Florida seeks to reinstate CDLs cancelled for 19 individuals deemed non-domiciled in that state, signaling this issue extends beyond New York.