New York, DOT back in the ring
New York Gov. Kathy Hochul and Transportation Secretary Sean Duffy have already butted heads over congestion pricing. Now, Hochul and Duffy are prepared to tangle over the DOT’s decision to withhold $73 million in federal funding to the state.
Late last week, Hochul and New York Attorney General Letitia James announced that they were suing over DOT’s decision to withhold tens of millions of dollars in highway funding over its handling of non-domiciled CDLs. The state’s leaders argue that its CDLs were issued in full compliance with federal regulations and that the decision to withhold funding is “illegal and puts New Yorkers at risk.”
“Once again, New York is facing devastating federal cuts for nothing more than political payback,” Hochul said in a news release. “Here’s the truth: New York has always followed federal rules when issuing CDLs, something even the previous Trump Administration verified year after year. Ripping away money that goes towards critical safety upgrades on our roads is reckless, and it is illegal. Standing with Attorney General James, we will fight – and win – in court to restore this funding and ensure that our roads are safe for millions of New Yorkers who rely on them.”
Saying that New York failed to revoke “illegally issued” non-domiciled CDLs and commercial learner’s permits, the U.S. DOT announced on April 16 that it was withholding about $73 million from the state.
“I promised the American people I would hold any state leader accountable for failing to keep them safe from unvetted, unqualified foreign drivers,” Duffy said. “I’m delivering on that promise today by refusing to fund Gov. Hochul’s dangerous, anti-American policies. My message to New York’s far left leadership is clear: families must be prioritized on American roads.”
According to an FMCSA audit, the New York Department of Transportation had been routinely issuing CDLs to foreign drivers in violation of federal law. The federal audit revealed a 53% failure rate in the sampled records.
In response to several high-profile crashes, FMCSA has worked over the past year to get a handle on the number of non-domiciled CDLs issued by states. The agency has called it a safety issue, citing examples of CDLs being issued to drivers who weren’t vetted or weren’t legally in the U.S.
FMCSA’s non-domiciled CDL rule took effect on March 16. Under the final rule, eligibility for a non-domiciled CDL is much more limited. The rule is expected to take nearly 200,000 non-domiciled CDL holders off the road.
However, New York says that its CDLs are compliant and that revoking them would disrupt key industries that rely on commercial drivers and could lead to bus driver shortages.
“New Yorkers depend on safe, reliable roads and bridges to get to work, take their kids to school, and keep our economy moving,” James said. “The administration cannot promise funding to our state and then abruptly yank it away. By canceling this funding, the federal government is putting jobs and communities at risk. New Yorkers are counting on these investments, and we will not let the president jeopardize our communities’ safety. My office is taking this administration to court to ensure New York gets every dollar it is owed.”
Congestion pricing
This is not the first time that Hochul and Duffy have been on the opposite end of an argument.
Since President Donald Trump took office in 2025, the DOT set out to stop New York City’s congestion pricing toll program.
In February 2025, Duffy sent Hochul a letter informing her that the Federal Highway Administration was revoking its approval of congestion pricing. New York had one month to end the program.
That prompted Hochul to sue the Trump administration, sparking a public dispute between the two. Duffy’s deadline to end congestion pricing was extended twice. He also included threats to withhold federal funding.
Last month, a federal judge ruled in favor of New York, effectively ending the Trump administration’s attempts to kill congestion pricing. LL