New York will lose more than $73.5 million in federal funding as the Transportation Department stated that the state has not revoked nearly 33,000 commercial driver's licenses issued to immigrants, flagged as questionable after an audit discovered issues last year. The audit revealed that more than half of the reviewed licenses were still active long after the immigrants had legal authorization to remain in the country. The federal government has been reviewing similar records in all states since Transportation Secretary Sean Duffy highlighted this issue following a tragic truck accident in Florida that resulted in three deaths.

Various states, including California, have faced significant financial penalties for similar reasons, prompting proactive measures to ensure the validity of driver’s licenses.

Duffy, aiming to hold state leaders accountable, emphasized that immigrants represent around 20% of truck drivers overall, but the non-domiciled licenses only amount to roughly 5%. New regulations are expected to prevent a majority of these drivers from obtaining new commercial licenses in the future.

New York officials stand by their licensing practices, arguing they comply with federal law and suggesting that these recent actions are a broader effort to target blue states. The state's response highlights ongoing tensions with federal authorities, raising questions about the balance between safety regulations and immigration policies.