California loses $160M for delaying revocation of 17,000 commercial driver’s licenses for immigrants

California Faces $160 Million Federal Funding Cut Over Immigrant Trucker License Dispute

California will forfeit $160 million in federal transportation funding after delaying the revocation of approximately 17,000 commercial driver’s licenses issued to immigrants, federal officials announced Wednesday.

The decision marks an escalation in tensions between California and federal transportation authorities. Transportation Secretary Sean Duffy had already withheld $40 million in funding, claiming the state failed to enforce English proficiency requirements for truck drivers.

The dispute stems from a federal audit that identified multiple compliance issues with California’s commercial driver’s license program. Investigators found licenses remained valid long after visa expirations, and some were improperly issued to Mexican and Canadian citizens. More than 25 percent of California licenses reviewed during the sample audit were deemed unlawful.

California initially notified affected drivers last fall that their licenses would be revoked. However, last week, state officials announced they would delay these actions until March following legal challenges from immigrant advocacy groups concerned about unfair targeting. Federal officials maintain California was required to complete the revocations by Monday.

“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,” Duffy stated. “Gavin Newsom has failed to do so — putting the needs of illegal immigrants over the safety of the American people.”

California DMV spokesperson Eva Spiegel defended the state’s position, saying California complies with all regulations and had engaged in positive conversations with the Federal Motor Carrier Safety Administration (FMCSA) about the delay. The extension was requested to allow federal officials time to complete their review of the state’s commercial licensing program.

“We strongly disagree with the federal government’s decision to withhold vital transportation funding from California — their action jeopardizes public safety because these funds are critical for maintaining and improving the roadways we all rely on every day,” Spiegel said.

Federal officials contradicted this characterization in their formal letter, stating they never agreed to the delay and still expected the licenses to be revoked by the original deadline.

The federal crackdown on commercial driver’s licenses intensified last summer following a fatal crash in Florida that killed three people. The incident involved a truck driver unauthorized to be in the United States who performed an illegal U-turn. A similar crash occurred in California in October.

Previously, Duffy had threatened to withhold funding from eight states where audits uncovered significant problems, including California, Pennsylvania, Minnesota, New York, Texas, South Dakota, Colorado, and Washington. The threat against California had temporarily been dropped after state officials promised to revoke the problematic licenses by January 5.

Derek Barrs, FMCSA Administrator, criticized California’s failure to fulfill this commitment. “We will not accept a corrective plan that knowingly leaves thousands of drivers holding noncompliant licenses behind the wheel of 80,000-pound trucks in open defiance of federal safety regulations,” he said.

The state also reportedly decided unilaterally to delay cancellation of approximately 4,700 additional unlawful licenses discovered after the initial audit.

Trucking industry organizations have generally supported the enforcement efforts. Todd Spencer, president of the Owner Operator Independent Drivers Association, stated, “For too long, loopholes in this program have allowed unqualified drivers onto our highways, putting professional truckers and the motoring public at risk.”

However, the situation has prompted concerns about potential discrimination. The Sikh Coalition and the Asian Law Caucus filed a class-action lawsuit on behalf of California drivers, arguing immigrant truck drivers were being unfairly targeted. This concern intensified because both drivers in the recent fatal crashes were Sikhs.

According to industry data, immigrants represent approximately 20 percent of all truck drivers in the United States, while non-domiciled licenses—those issued to certain immigrants—account for about 5 percent of all commercial driver’s licenses, representing roughly 200,000 drivers nationwide.

The Transportation Department had proposed additional restrictions that would significantly limit which non-citizens could obtain commercial licenses, but these new rules have been temporarily blocked by court action while legal challenges proceed.