FMCSA Withholds $73.5M from New York for Non-Domiciled CDL Violations

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Trump’s Transportation Secretary Sean P. Duffy Withholds $73 Million from New York for Failure to Revoke Illegally Issued Trucking Licenses

Thursday, April 16, 2026

WASHINGTON, D.C. – U.S. Transportation Secretary Sean P. Duffy today announced that the Federal Motor Carrier Safety Administration (FMCSA) is withholding over $73 million from the State of New York for failing to revoke illegally issued non-domiciled commercial learner’s permits (CLPs) and commercial driver’s licenses (CDLs).

“I promised the American people I would hold any state leader accountable for failing to keep them safe from unvetted, unqualified foreign drivers. I’m delivering on that promise today by refusing to fund Governor Hochul’s dangerous, anti-American policies. My message to New York’s far left leadership is clear: families must be prioritized on American roads,” said U.S. Transportation Secretary Sean P. Duffy.

“FMCSA’s mission is safety. That means ensuring that every commercial driver on the road is properly vetted and qualified. New York’s continued refusal to fix these failures undermines that mission, and we will not allow federal dollars to support a system that falls short of the law,” said FMCSA Administrator Derek Barrs.

Reminder:

FMCSA’s audit of New York’s non-domiciled CDL issuance practices found numerous failures by the state of New York including:

• Out of 200 sampled records, 107 were issued in violation of federal law—a failure rate of over 53%.
• The DMV’s systems defaulted to issuing 8-year licenses to foreign drivers for non-REAL ID licenses, regardless of when their legal status expired. Additional Information:

On December 12, FMCSA found that, following a nationwide audit of CDLs, the New York Department of Motor Vehicles (DMV) had been routinely issuing CDLs to foreign drivers illegally. The federal audit exposed a 53% failure rate in the records sampled, indicating a total collapse in the administration of New York’s non-domiciled CDL program.

On March 13, FMCSA issued a formal response refuting the state’s claims of compliance and reiterating that New York had failed to complete required corrective actions, including the immediate rescission of all noncompliant non-domicile CLPs and CDLs.

After the state’s continuous refusal to remove these dangerous drivers from the road, FMCSA has issued a final determination of substantial noncompliance and moved to withhold $73,502,543.This represents 4% of New York’s National Highway Performance Program and Surface Transportation Program Block Grant funds.