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New York, California React Differently to FMCSA CDL Threats
With Funds on the Line, California Complies but New York Balks at Merit of Claims
Key Takeaways:
- New York is pushing back after FMCSA threatens penalties over the issuance of non-domiciled CDLs.
- California's response was to comply, revoking 17,000 CDLs to avoid steeper losses.
- New York maintains that it "follows federally issued rules when issuing" CDLs.
Faced with federal penalties over the issuance of non-domiciled commercial driver licenses and permits, two states chose sharply different paths: New York is holding its ground despite a $73.5 million funding hit, while California complied — revoking thousands of licenses to avoid steeper losses.
New York lost the funding after the Federal Motor Carrier Safety Administration determined the state violated federal requirements governing commercial driving privileges for non-domiciled applicants.
FMCSA cited a 53% failure rate, finding that 107 of 200 sampled records were issued in violation of federal law.
The agency also said the New York Department of Motor Vehicles defaulted to issuing eight-year non-REAL ID licenses to immigrant drivers regardless of when their legal status expired.
“I promised the American people I would hold any state leader accountable for failing to keep them safe from unvetted, unqualified foreign drivers,” Transportation Secretary Sean Duffy said April 16. “I’m delivering on that promise today by refusing to fund Governor [Kathy] Hochul’s dangerous, anti-American policies. My message to New York’s far left leadership is clear: Families must be prioritized on American roads.”
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Duffy
The withheld funds represent 4% of New York’s National Highway Performance Program and Surface Transportation Program Block Grant allocations from the U.S. Department of Transportation.
Hochul and New York DMV Commissioner Mark J.F. Schroeder were notified of the action in an April 16 notice of noncompliance from FMCSA Administrator Derek Barrs, who said the penalty was “a direct consequence” of the state dismissing federal enforcement warnings after concluding the agency’s preliminary findings lacked merit.
Barrs said New York “refuses to even identify the drivers with noncompliant CLPs and CDLs and take corrective action,” adding that “there are likely thousands of drivers” holding noncompliant licenses while operating across New York and the country — a situation he called “unacceptable” and “a significant safety risk.”
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Barrs
He said New York has issued roughly 25,000 non-domiciled licenses across industries ranging from trucking and sanitation to school transportation.
FMCSA conducted its audit of New York licensing records in July. Barrs said the state “did not dispute the 101 transactions” in which licenses exceeded the expiration dates of drivers’ lawful presence documents, but “continues to dispute the legal and procedural merits” of the agency’s noncompliance determination.
A spokesperson for the governor rejected FMCSA’s findings when contacted by Transport Topics.
“These charges are a baseless attempt to attack blue states, because as everyone knows New York simply follows federally issued rules when issuing commercial driver’s licenses, something that even the Trump administration has acknowledged,” the spokesperson said. “This continues a yearlong pattern of Secretary Duffy threatening to withhold money that keeps our roads, subways and other infrastructure safe for New Yorkers. We will fight back, and once again we will win.”
The withheld funds were earmarked for fiscal year 2027. Barrs warned they are “no longer available for apportionment,” and said continued noncompliance could put an additional $147 million at risk in fiscal 2028. New York has also been warned it could face federal decertification of its CDL program.
“FMCSA’s mission is safety,” Barrs said. “That means ensuring that every commercial driver on the road is properly vetted and qualified. New York’s continued refusal to fix these failures undermines that mission, and we will not allow federal dollars to support a system that falls short of the law.”
California Complies but Lost Millions
California, by contrast, has moved to achieve compliance, revoking thousands of non-domiciled CLDs and CLPs after facing steep financial penalties of its own.
In January, the state received a final determination of noncompliance for its handling of non-domiciled driving privileges and permanently lost 4% of its federal highway and surface transportation funding — $160 million — after auditors found that roughly 25% of those licenses were issued contrary to FMCSA regulations.
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While the California Department of Motor Vehicles and FMCSA initially clashed over the timing and scope of required corrective actions — particularly a federal mandate to revoke thousands of licenses — the state ultimately shifted course. Facing the potential loss of an additional $158.3 million and the possible revocation of its authority to issue CDLs, California began complying with FMCSA directives.
The state has revoked the licenses deemed to be unlawfully issued and is now working with FMCSA to complete additional corrective measures. Duffy said California initially took a similar stance to New York before reversing course.
“We pulled $160 million from the state of California. They had the same tone as New York, but in the end they came into compliance,” Duffy said during an interview with Fox News. “They revoked 17,000 licenses that were unlawfully issued in the state of California. So, pulling money from states does work.”
