Federal crackdown: DOT withholds $40M fund from California over migrant CDL loophole

12/15/2025 / By Belle Carter

The U.S. DOT is withholding $40.7 million from California for refusing to enforce English Language Proficiency (ELP) standards for commercial drivers. New York faces $73 million in penalties after audits revealed that over 50% of non-domiciled CDLs were issued unlawfully, including to migrants with temporary or no legal work authorization.
Fatal accidents, including a Tennessee pileup involving a Chinese national with a questionable NY CDL, have exposed systemic failures. FMCSA found 107 out of 200 NY CDLs were unlawfully granted—some to applicants who didn’t even provide a full name.
California remains the only state refusing ELP enforcement, despite already revoking 17,000 improperly issued CDLs. Withheld MCSAP funds would have been used for truck inspections and safety audits, raising concerns about unchecked road risks.
Half of all CDLs nationwide originate from NY or CA, amplifying dangers of lax oversight. Louisiana’s Border Patrol crackdown (5,000 detained) highlights tensions between immigration enforcement and economic concerns.
NY has 30 days to revoke illegal licenses, pause issuances, and conduct audits—or forfeit $73 million. DOT warns of no more tolerance for loopholes, stressing: “At the end of the day, it’s about safety.”

The U.S. Department of Transportation (DOT) is intensifying its enforcement of federal safety standards, withholding $40.7 million in funding from California and threatening to withdraw $73 million from New York after audits revealed widespread failures in issuing commercial driver’s licenses (CDLs) to migrants, including those in the country illegally.

The crackdown follows fatal accidents linked to improperly licensed truck drivers and raises urgent questions about road safety, immigration enforcement and state compliance with federal law.

Transportation Secretary Sean Duffy announced the sanctions on Friday, Dec. 12, citing California as the only state refusing to enforce federal English Language Proficiency (ELP) standards for commercial drivers.

Meanwhile, a separate audit in New York found that over 50% of non-domiciled CDLs were issued unlawfully—many to applicants with temporary or no legal work authorization.

“What New York does is if an applicant comes in and they have a work authorization—for 30 days, 60 days, one year—New York automatically issues them an eight-year commercial driver’s license,” Duffy said. “That’s contrary to law.”

The DOT’s actions mark a significant escalation in federal oversight, with officials warning that lax licensing practices endanger national roadways.

Systemic failures put public at risk

The Federal Motor Carrier Safety Administration (FMCSA) analyzed 200 non-domiciled CDLs issued by New York’s Department of Motor Vehicles (DMV) and found 107 were unlawfully granted—some to applicants who didn’t even provide a full name.

“You don’t just drive in New York if you get a New York commercial driver’s license—you drive around the country,” Duffy emphasized, referencing a recent fatal Tennessee pileup allegedly caused by a Chinese national holding a questionable New York CDL.

New York Gov. Kathy Hochul has 30 days to revoke illegal licenses, pause new issuances and conduct a full audit—or lose $73 million in federal highway funds.

FMCSA Administrator Derek Barrs called New York’s violations “a systematic, grossly unacceptable deviation from federal safety regulations.” Meanwhile, NY DMV spokesperson Walter McClure dismissed Duffy’s claims as “a desperate attempt to distract” and insisted New York complies with federal rules—a claim directly contradicted by DOT findings.

California defies federal standards, loses funding

California stands alone in refusing to enforce ELP requirements, prompting DOT to withhold $40.7 million in Motor Carrier Safety Assistance Program (MCSAP) funds—money typically used for truck inspections and safety audits.

“California is the only state that’s unwilling to enforce English proficiency rules,” Duffy said. “How you can get a license when you’re not proficient in English in California begs the question: What the hell is going on in California?”

The state has already revoked 17,000 improperly issued CDLs but remains defiant.

Safety vs. sanctuary policies

According to BrightU.AI‘s Enoch, the introduction of non-domicile commercial licenses has raised significant concerns about the qualifications and safety of these drivers. This category of licenses was introduced through lobbying efforts by the American Trucking Associations, prioritizing cheap labor over safety standards, and has led to a situation where unqualified drivers are on the roads, posing a risk to public safety.

The DOT’s actions highlight a growing clash between federal safety mandates and state sanctuary policies that shield illegal immigrants from enforcement. Half of all CDLs nationwide originate from New York or California, raising concerns that lax oversight endangers interstate commerce.

In Louisiana, tensions flared as Border Patrol agents detained 5,000 migrants in a statewide enforcement operation, prompting Lt. Gov. Billy Nungesser (R) to urge restraint: “Did they say we’re gonna be here for two weeks, for two months or until 12 million people are detained? What is that going to cost the economy?”

But Gov. Jeff Landry’s office pushed back, stating: “When an American citizen commits a crime, they are held accountable—the same standard should apply to everyone.”

The DOT’s funding penalties signal a hardline stance against states circumventing federal driver safety laws. With thousands of improperly licensed truckers still on the road—many operating 80,000-pound rigs—the stakes couldn’t be higher.

As Duffy stressed: “At the end of the day, it’s about safety.” Whether New York and California comply—or forfeit millions—remains to be seen. But one thing is clear: The federal government is no longer turning a blind eye to deadly loopholes in commercial licensing.

Watch the video below that talks about Trump’s crackdown on 17,000 illegal migrants with CDLs in California.

This video is from the NewsClips channel on Brighteon.com.