From Fox News: The Trump administration is withholding roughly $160 million in federal transportation funding from California beginning in fiscal year 2027 after the state failed to revoke more than 17,000 commercial drivers’ licenses (CDLs), which federal regulators say were unlawfully issued, by a federally agreed-upon deadline, U.S. Transportation Secretary Sean Duffy announced Wednesday.
The funding penalty follows a “final determination” issued by the Federal Motor Carrier Safety Administration (FMCSA) after California missed a Jan. 5, 2026, deadline to cancel the licenses. Federal officials say this allowed foreign drivers whose licenses did not comply with federal lawful-presence requirements to continue operating heavy commercial vehicles on U.S. roads.
According to the FMCSA, the agency’s audit uncovered what it described as a “systemic collapse” of California’s non-domiciled CDL program. Federal officials said the state illegally issued licenses with expiration dates extending years beyond a driver’s lawful presence and granted CDLs to individuals who were ineligible to hold them under federal safety regulations.
Overall, more than 20,000 active non-domiciled — people whose permanent home is located outside the U.S. — CDLs were issued by California in violation of federal rules, according to the audit.
In a post on X, Duffy said, “It’s reckoning day for [Gov.] Gavin Newsom and California. Our demands were simple: follow the rules, revoke the unlawfully-issued licenses to dangerous foreign drivers, and fix the system so this never happens again.”
“Gavin refused. So now I am pulling nearly $160 MILLION from California. Under @POTUS, federal dollars won’t fund this CHARADE.”
🚨It’s RECKONING DAY for Gavin Newsom 🚨
Our demands to California were simple:
➡️ Follow the rules
➡️ Revoke the unlawfully-issued licenses to dangerous foreign drivers
➡️ Fix the system so this never happens againGavin refused. So now I am pulling nearly $160 MILLION from… pic.twitter.com/j2ckDLlRdI
— Secretary Sean Duffy (@SecDuffy) January 7, 2026
Read more at Fox News
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