by Federal Funding at Risk
The U.S. Department of Transportation is blocking $160 million in federal funds allocated to California. The reason is the state’s refusal to cancel commercial driving privileges issued to more than 17,000 immigrant long-haul truckers. Federal officials claim the licenses were issued illegally and should have been revoked months ago.
Tightening of Rules Under the Trump Administration
The Trump administration has largely dedicated 2025 to tightening the rules for obtaining commercial licenses for immigrants, including refocusing on compliance with English language proficiency standards. This rule consolidation followed a series of widely publicized accidents involving drivers from abroad, which drew attention to gaps in the oversight system.
California’s Shift in Position
In November, it seemed California had agreed to the administration’s pressure. State officials indicated they would cancel thousands of licenses on the grounds that the expiration dates of federal work permits did not match the dates on the state-issued credentials. This step was taken after a warning from the Department of Transportation about the potential withholding of critically important infrastructure funds. California acknowledged that its licensing system did not comply with state law, which requires commercial driver’s licenses to expire concurrently with or before the federal work permit. However, just before the holidays, the state changed its position. It was announced that the licenses would no longer be revoked, despite previous warnings.
Federal Government’s Reaction
This decision quickly drew outrage from U.S. Secretary of Transportation Sean P. Duffy, who confirmed that the Federal Motor Carrier Safety Administration will now withhold $160 million in funding.
“This is a day of reckoning for Gavin Newsom and California. Our demands were simple: follow the rules, revoke the illegally issued licenses for dangerous foreign drivers, and fix the system so this doesn’t happen again. Gavin Newsom failed to do that – putting the needs of illegal immigrants above the safety of the American people. While Gavin may not care about protecting you and your family on our roads, the Trump administration does. We are suspending this funding to ensure federal tax dollars are not financing this farce.”
FMCSA Administrator Derek D. Barrs added that the agency “will not accept corrective actions that knowingly leave thousands of drivers with non-compliant licenses behind the wheel of 80,000-pound trucks, openly flouting federal safety rules.”
Photo: Volvo Trucks, Tesla, Mack
This dispute highlights a deeper tension between federal authorities and individual states regarding immigration control and labor regulation. The blocking of funds is a direct financial pressure that could affect California’s infrastructure projects. The situation also raises questions about road safety and the training standards for heavy truck drivers, especially in the context of a general labor shortage in the transportation industry. The further development of events could set a precedent for the relationship between state governments and federal agencies in similar matters concerning the simultaneous enforcement of local and national laws.
