Transportation Secretary Sean Duffy announced Thursday that the government is withholding millions in federal funding to New York, due to concerns that it is violating regulations on granting trucking licenses to noncitizens.

The Federal Motor Carrier Safety Administration is withholding $73.5 million in highway funding due to accusations that New York failed to revoke illegally issued nondomiciled commercial learner’s permits and commercial driver’s licenses, according to Duffy. The development comes after Duffy threatened in December 2025 to revoke the funding if Gov. Kathy Hochul (D-NY) did not address the Trump administration’s concerns.