The Trump administration announced its plans on Wednesday to suspend millions in funding to California over the state’s policy on commercial driver’s licenses.
Transportation Secretary Sean Duffy said he is withholding $160 million from California because the state failed to follow through on a pledge to revoke 17,000 licenses Washington believes were issued unlawfully to foreign drivers. The development reignites a battle officials fought over the same matter last year, before they appeared to resolve the CDL debate in November 2025.
“Our demands were simple: follow the rules, revoke the unlawfully-issued licenses to dangerous foreign drivers, and fix the system so this never happens again,” Duffy said in a statement condemning Gov. Gavin Newsom (D-CA).
“Gavin Newsom has failed to do so – putting the needs of illegal immigrants over the safety of the American people. While Gavin may not care about protecting you and your family on our roads, the Trump Administration does. We’re pulling this funding to ensure federal tax dollars don’t fund this charade,” he continued.
The dispute started last year, when Duffy expressed concern over an audit indicating DMVs in a handful of states were allowing people who enter the United States on work permits to “illegally” obtain CDLs they could use even after the permits expire. The Trump administration has pressed or threatened action against a number of states, including Minnesota and Pennsylvania, over the matter.
Duffy has also pressed for states to adhere to stricter standards requiring CDL holders, typically truckers, to have a firm grasp of the English language after a series of deadly accidents involving foreign-born drivers.
In recent months, Duffy has accused California of holding a particularly “egregious” record on CDLs, saying that over 25% of non-domiciled CDLs reviewed were improperly issued.
The state eventually agreed to revoke 17,000 licenses late last fall by Jan. 5 after the government pledged to pull $160 million in funding, appearing to resolve the matter.
But the debate flared again this week, when California extended the January deadline, prompting the renewal of Washington’s plans to rescind the federal highway funding. The state pushed the deadline to March, when the Sikh Coalition and the Asian Law Caucus, known as immigrant-rights groups, are set to file a class-action lawsuit challenging the changes, alleging that the DMV failed to offer proper recourse for affected drivers, refused to renew or issue new commercial driver’s licenses, and violated their rights.
In previous statements to the Washington Examiner, the state argued it was in compliance with federal law.
DUFFY TO YANK $73 MILLION IN FUNDING UNLESS NEW YORK DEADLINE ON CDLS
The California Department of Motor Vehicles said that the federal government had previously allowed commercial driver’s licenses “for asylum seekers and refugees” and on “September 26, announced emergency regulations to cease this practice that went into effect on September 29.”
“California is in compliance with these regulations and will remain in compliance with federal law,” a spokeswoman for the DMV added. “The U.S. Department of Transportation has no legitimate basis to withhold certain federal highway transportation funds from the state.”
