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DOT Withholds $73.5 Million From New York Over Non-Resident Trucker Licenses

The funding freeze pressures the state to cancel thousands of commercial licenses flagged by a federal audit as out of step with safety rules.

Overview

  • The U.S. Department of Transportation said Thursday it is holding back $73.5 million in highway funds and warned another $147 million is at risk unless New York revokes improperly issued commercial licenses for non-citizens.
  • A Federal Motor Carrier Safety Administration audit found 107 of 200 sampled records were illegal and identified about 32,606 non-domiciled CDLs, which are licenses for non-citizens with temporary work authorization.
  • Federal officials say New York’s DMV systems defaulted to eight-year licenses that extended past work-permit end dates, which can leave licenses valid after legal status expires.
  • New York officials dispute the findings, say they follow federal rules, and plan to fight the action, noting the state stopped issuing new non-resident CDLs in February but has not revoked those issued earlier.
  • The loss equals about 4% of key federal highway programs in New York, and the move follows similar nationwide reviews in which California lost about $200 million before revoking 17,000 licenses, drawing praise from trucking groups and concern from immigrant advocates.