Federal transportation officials say a recent audit found widespread problems in New York’s commercial driver’s license program, and they’re threatening to pull $73 million in highway funding unless the state fixes the issue and answers within 30 days.
On Friday, Transportation Secretary Sean Duffy announced plans to withhold $73 million in federal highway funds from New York after an audit showed more than half of sampled commercial driver’s licenses were issued unlawfully. The finding landed at the same time federal safety officials urged immediate corrective action to protect the integrity of the CDL program.
“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 said. Governor Hochul has 30 days to respond.
The Federal Motor Carrier Safety Administration audit reviewed 200 CDL records and found 107 that were unlawfully issued, according to the FMCSA statement. The audit also flagged that the New York DMV appeared to default to issuing 8-year licenses to foreign drivers for non-REAL ID licenses, regardless of when their legal status expired. Inspectors raised concerns that DMV staff sometimes relied on expired lawful presence documents when issuing commercial licenses.
“Secretary Duffy is lying about New York State once again in a desperate attempt to distract from the failing, chaotic administration he represents,” NYS DMV spokesperson Walter McClure said. The DMV pushed back hard, asserting it follows federal verification rules and promising to review the federal letter and respond.
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.
FMCSA Administrator Derek Barrs was blunt about the audit’s findings: “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 that New York must act fast, including a comprehensive audit and revocation of illegally issued credentials. Conservatives argue this isn’t about politics; it’s about following federal law and ensuring safe highways.
The spending at stake is taxpayer money earmarked for maintaining and improving highways, and federal officials are signaling they won’t bankroll states that fail to enforce basic program rules. That position reflects a straightforward accountability standard: states must manage federally supported programs in line with national regulations or lose access to funds until they correct problems.
New York now faces a practical deadline and a choice: demonstrate swift, transparent fixes or accept the consequences of withheld federal aid. A clear audit trail and prompt corrective measures would satisfy critics who say the state must restore confidence in its CDL issuance process. Republican voices in Washington see the episode as proof that oversight matters and that federal enforcement has to be real, not symbolic.
Editor’s Note: President Trump is leading America into the “Golden Age” as Democrats try desperately to stop it.
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