By — Larry Neumeister, Associated Press Larry Neumeister, Associated Press By — Josh Funk, Associated Press Josh Funk, Associated Press Leave your feedback Share Copy URL https://www.pbs.org/newshour/politics/u-s-wrongly-withheld-new-york-highway-funds-over-immigrant-licenses-appeals-court-rules Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter U.S. wrongly withheld New York highway funds over immigrant licenses, appeals court rules Politics Nov 13, 2026 5:55 PM EST NEW YORK (AP) — The U.S. Transportation Department wrongly decided to withhold nearly $74 million in highway money from New York state after it refused to revoke nearly 33,000 questionable commercial driver's licenses for immigrants when an audit revealed problems last year, a federal appeals court said Friday. A three-judge panel of the 2nd U.S. Circuit Court of Appeals in Manhattan concluded in a written decision that the Federal Motor Carrier Safety Administration, an arm of the Transportation Department, acted in a manner that was "arbitrary, capricious, or contrary to law" when it penalized New York. WATCH: Duffy threatens to withhold millions in highway funds from New York over flaws in immigrant commercial driver's license system The appeals court said the…
U.S. wrongly withheld New York highway funds over immigrant licenses, appeals court rules
In short
A three-judge appellate panel ruled that the U.S. Transportation Department acted arbitrarily by penalizing New York for issuing eight-year commercial licenses that outlasted drivers' visa expirations. Federal officials had argued that allowing roughly 33,000 immigrants to retain their licenses after losing legal status posed severe safety hazards. However, the court found the state could not be punished because the cancellation mandates were not yet active during the audit period. The dispute emerged amid an administration initiative led by Transportation Secretary Sean Duffy to enforce stricter licensing and language rules.
Key points
- New York cannot be legally penalized for failing to revoke roughly 33,000 commercial lice…: New York cannot be legally penalized for failing to revoke roughly 33,000 commercial licenses before federal cancellation regulations took effect.
- State officials successfully argued that the withheld infrastructure funds jeopardized vi…: State officials successfully argued that the withheld infrastructure funds jeopardized vital maintenance for local roads and bridges.
- The legal fight intersects with federal initiatives that have removed approximately 26,00…: The legal fight intersects with federal initiatives that have removed approximately 26,000 commercial drivers nationwide over English language proficiency issues.