New York on Friday sued the Trump administration after it withdrew $73 million in federal highway funding following the state’s refusal to revoke commercial driver’s licenses for noncitizens.
Attorney General Letitia James filed the lawsuit before the U.S. Court of Appeals for the Second Circuit, in the latest episode of the dispute between the state and the federal government over the policy that allows noncitizen residents to obtain commercial driver’s licenses.
New York authorizes noncitizens who are legally in the country and have federal work authorization to obtain commercial driver’s licenses (CDL). In February, following guidelines from the Donald Trump administration, the state limited the issuance of these licenses to non-citizens with H-2A, H-2B or E-2 visas. However, he refused to revoke the licenses already granted to those who only have federal work authorization and not those visas.
The Trump administration has criticized New York’s policy for allowing noncitizens without those three visas to obtain CDLs, calling them dangerous drivers without presenting ample evidence to support that claim. Gov. Kathy Hochul rejected those allegations and maintained that the state is in full compliance with federal rules governing these licenses.
James’ lawsuit contends that the federal government’s refusal to disburse the funds is arbitrary and capricious, constitutes an abuse of discretion, fails to comply with the law, exceeds government authority, and lacks substantial evidence.
“Among other flaws, the (federal government’s) final determination is based on a misinterpretation of its own long-standing regulations governing the issuance of CDLs to non-domiciled persons, as well as the standards for establishing material noncompliance,” the lawsuit states.
In response, U.S. Transportation Secretary Sean Duffy said the withholding of funds seeks to hold the state accountable “for failing to protect (Americans) from unverified and unqualified foreign drivers,” and that the Trump administration “refuses to fund Governor Hochul’s dangerous anti-American policies.”
“My message to New York’s far-left leadership is clear: Families must be the priority on American roads,” Duffy declared.
Hochul responded that the withdrawal of federal funds does not respond to security criteria, since the state complies with current federal regulations when issuing CDLs, and described the measure as purely political.
“New York has always followed federal rules when issuing CDLs, something even the previous Trump administration verified year after year,” Hochul said. “Taking away funds intended for critical safety improvements on our roads is reckless and illegal.”
According to the lawsuit, the $73 million withdrawn would have been used to “ensure the safety, maintenance and reliability of the entire New York transportation system.” Even delays in the delivery of these funds, the document warns, “endanger the safety of motorists and pedestrians.”
The lawsuit adds that if the current situation continues, New York could lose up to $147 million annually in federal highway funds in the coming years.
James asserted that the federal government is putting the state’s security and infrastructure at risk by withdrawing funding.
“New Yorkers depend on safe, reliable roads and bridges to get to work, get their kids to school, and keep our economy going. The administration cannot promise funds to our state and then abruptly withdraw them,” James said. “By canceling this funding, the federal government is putting jobs and communities at risk.”