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USA26 October, 20253 min read

Transportation Secretary Sean Duffy Cuts $160 Million in Federal Funds to California Over Illegal Noncitizen Truck Licenses

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Transportation Secretary Sean Duffy will withhold $160 million in federal funds from California. California is accused of illegally issuing commercial driver’s licenses to noncitizen truckers.

Transportation Secretary Sean Duffy Cuts $160 Million in Federal Funds to California Over Illegal Noncitizen Truck Licenses
Image: Associated Press
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7 outlets told this the same way.

Federal Funding Threat Over Licenses

U.S. Transportation Secretary Sean Duffy has threatened to withhold $160 million in federal funds from California over what the Department of Transportation alleges are illegally issued commercial driver’s licenses (CDLs) to noncitizens.

“U.S. Transportation Secretary Sean Duffy has threatened to withhold $160 million in federal funds from California, accusing the state of illegally issuing commercial driver’s licenses (CDLs) to noncitizens...”
Associated Press

The state has also been warned it could lose its authority to issue CDLs if it does not comply.

Federal officials say a nationwide audit—sparked by a fatal Florida crash involving an undocumented driver—found improperly issued licenses in several states, including California.

They claim that “tens of thousands” of unauthorized CDL holders may be operating vehicles such as fuel tankers and school buses.

California has been given about 30 days to stop issuing such licenses, review those already granted, and meet tightened federal requirements.

California officials dispute the allegations, setting up an urgent standoff over immigration verification, safety standards, and state authority in licensing commercial drivers.

Reporting for this sectionAssociated PressFortuneWFMZ

California CDL Eligibility Dispute

California officials deny any wrongdoing and argue that they already comply with tightened federal rules restricting CDL eligibility to certain visa holders and requiring immigration status verification. The state highlights that California CDL holders have lower crash rates than the national average. Local officials also cite compliance with recent federal regulations.

Newsweek highlights a contested case involving Harjinder Singh, who was charged with vehicular homicide after a deadly Florida crash. Federal authorities claim Singh was in the U.S. illegally when California issued his CDL.

Image from Fortune
Image: Fortune

California officials counter that he had work permits verified through federal systems. These rebuttals emphasize California’s position that its processes and safety outcomes meet or exceed federal expectations.

Federal Trucking License Rules

The dispute unfolds amid tightened federal rules adopted after fatal crashes linked to immigrant truck drivers. New requirements include verifying immigration status and enforcing English language proficiency for CDL applicants. Duffy has also threatened more funding cuts over California’s alleged failure to enforce the English standard.

“The dispute centers on tightened federal rules implemented after three fatal crashes involving immigrant truck drivers, which require states to enforce English language proficiency and verify immigration status for CDL applicants.”
Associated Press

One local outlet reports California is the only state failing to enforce English requirements. Newsweek adds that an emergency federal rule requires states to pause issuing licenses to non-citizens until they meet new standards. Fortune notes the eligibility limits to certain visa holders as part of the crackdown.

Political Reactions to Crackdown

The political stakes are high. Newsweek portrays the crackdown as politically charged, noting Republican officials who criticize sanctuary policies and call for stricter English proficiency rules. The article also highlights Governor Gavin Newsom’s defense of California and hints at a 2026 presidential bid.

AP, by contrast, characterizes the moment as ongoing tensions over immigration and transportation safety policies without spotlighting specific political figures. Local coverage such as WFMZ tends to emphasize the compliance standoff and the claim of unique English-rule nonenforcement more than broader national political ambitions.

Image from Newsmax
Image: Newsmax
Reporting for this sectionNewsweekAssociated PressWFMZFortune

California CDL Licensing Dispute

What happens next is unsettled. Multiple outlets say Duffy has threatened—rather than already cut—$160 million, giving California roughly 30 days to comply. There is a possibility of revoking the state’s authority to issue commercial driver’s licenses if it does not act.

“U.S. Transportation Secretary Sean Duffy has threatened to withhold $160 million in federal funds from California...”
WFMZ

AP and Fortune note federal auditors found improper licensing in several states. AP adds California must stop issuing the licenses and review those already granted. WFMZ and Santa Fe New Mexican emphasize the ongoing standoff.

Image from WFMZ
Image: WFMZ

Newsweek adds that under an emergency federal rule, states must pause issuing licenses to non-citizens until they meet new standards. This signals immediate operational changes even as legal and political battles continue.

Reporting for this sectionFortuneAssociated PressWFMZNewsweek