FMCSA Penalizes New York $73M Over CDL Licensing Violations

Key Details The Federal Motor Carrier Safety Administration is withholding $73.5 million in federal highway funding from New York after the state failed to revoke illegally issued non-domiciled commercial driver licenses and learner's permits. An FMCSA audit of 200 sampled CDL records found that 107 were issued in violation of federal law, reflecting a 53% failure rate. The Core Problem New York's Department of Motor Vehicles defaulted to issuing eight-year CDLs for certain non-REAL ID credentials without verifying when drivers' lawful U.S. status expired. Federal regulations require non-domiciled CDLs to align with a driver's authorized period of presence in the country. Why It Matters FMCSA Administrator Derek Barrs emphasized that the enforcement action protects public safety by ensuring only properly vetted and qualified commercial drivers operate on American roads. The withheld funds represent approximately 4% of New York's total National Highway Performance Program and Surface Transportation Program Block Grant allocations. Next Steps New York must complete required corrective actions to resolve the substantial noncompliance determination. The state's continued failure to address these systemic licensing deficiencies leaves federal highway safety funding in jeopardy.