In a recent directive, Transportation Secretary Sean Duffy declared that the Department of Transportation (DOT) would rescind close to $160 million in federal funding allocated to California. This decisive action arises from the state's noncompliance with a January 5 deadline to revoke commercial driver’s licenses (CDLs) that had been improperly issued to undocumented individuals.
Secretary Duffy characterized the decision as a critical moment for California Governor Gavin Newsom, emphasizing that the expectations set by the DOT were straightforward but unmet. In his communication, Duffy conveyed frustration, stating that Governor Newsom's refusal to act compelled the withdrawal of substantial federal funds.
The DOT’s formal announcement detailed that the Federal Motor Carrier Safety Administration (FMCSA) would retract funding exceeding $160 million, distributed to California through programs such as the National Highway Performance Program and the Surface Transportation Block Grant. These funds are instrumental in supporting state-level efforts to enhance the national highway infrastructure, including the maintenance and improvement of bridges and tunnels on public roads. Additionally, the funding supports pedestrian and bicycle infrastructure projects, as well as capital investments in transit.
Notably, California had previously committed in November to rescind 17,000 CDLs as part of compliance efforts. However, subsequent failure to meet the January 5 federal deadline prompted the enforcement measure taken by the DOT.
The conflict between Transportation Secretary Duffy and Governor Newsom has been ongoing, with Duffy issuing several prior warnings regarding the potential loss of federal funds tied to the CDL issue. Governor Newsom publicly criticized these allegations as unfounded and described them as a regrettable attempt to disseminate misinformation.
Beyond California, Secretary Duffy has confronted other Democratic officials over similar concerns. For instance, the DOT has notified the state of Minnesota—led by Governor Tim Walz—that over $30 million in federal transportation funds will be withheld due to the illegal issuance of CDLs to undocumented drivers.
The controversy gained national attention after a tragic incident involving an undocumented commercial driver, Harjinder Singh, who made an illegal U-turn on a Florida highway, resulting in three fatalities. Singh had obtained his CDL in California, bringing scrutiny to California's issuance policies and prompting calls for stricter enforcement from various stakeholders.
This dispute highlights challenges facing the federal government and states regarding CDL issuance policies, compliance with safety regulations, and the allocation of infrastructure funding. The reallocation of nearly $160 million from California's transportation programs may impact several projects aimed at improving highways, bridges, tunnels, and non-motorized transportation infrastructure.
As the situation develops, attention will focus on whether California will take further corrective actions to restore funding and comply with federal requirements, alongside the broader implications for state-federal relations in transportation policy enforcement.