Duffy Withholds $160M Over California Truck Licenses

U.S. Transportation Secretary Sean Duffy is withholding nearly $160 million from California after the state missed the Jan. 5 deadline to revoke more than 17,000 improperly issued non-domiciled commercial driver licenses (CDLs).

“It’s reckoning day for Governor Newsom and California,” Duffy said Jan. 7, citing a Federal Motor Carrier Safety Administration (FMCSA) notice declaring “substantial noncompliance.” He accused the state of prioritizing illegal immigrants over public safety and said the funding cut ensures federal dollars do not support “this charade.”

FMCSA Administrator Derek Barrs noted California partially implemented reforms but failed to cancel 17,400 non-domiciled CDLs by the agreed date. The remaining 2,700 licenses were due for revocation by Feb. 13. Consequently, FMCSA will withhold 4% of the state’s National Highway Performance Program and Surface Transportation Block Grant funds starting fiscal 2027.

American Trucking Associations President Chris Spear emphasized the nationwide risk when states issue CDLs inconsistently and urged California to work with FMCSA to ensure only qualified drivers operate commercially.

California DMV Director Steve Gordon expressed hope that ongoing collaboration would restore confidence and allow the state to resume issuing corrected licenses. Source: https://www.ttnews.com