Overview
- FMCSA issued a final determination and will block roughly $160 million via the National Highway Performance Program and Surface Transportation Block Grant beginning in fiscal year 2027.
- California agreed in November to revoke roughly 17,000 licenses by Jan. 5, then pushed the date to March after a class‑action lawsuit by the Sikh Coalition and Asian Law Caucus.
- Federal regulators said the extension violated the agreed corrective plan, while California asserts it is compliant and argues the funding cut endangers roadway maintenance and safety.
- The federal campaign widened to North Carolina on Thursday, with DOT threatening nearly $50 million after an FMCSA review found problems in 54% of sampled non‑domiciled CDLs.
- The crackdown follows deadly crashes and an audit finding that more than a quarter of sampled California licenses were unlawfully issued, alongside a separate $40 million penalty tied to English‑proficiency enforcement.