U.S. DOT Withholds $160 Million From California Over Commercial Driver’s License Dispute

The U.S. Department of Transportation (USDOT) announced it is withholding $160 million in federal transportation funding from California, citing the state’s failure to cancel more than 17,000 improperly issued commercial driver’s licenses (CDLs) held by non-U.S. citizens. The decision escalates a growing dispute between the federal government and California over trucking safety, immigration enforcement, and regulatory compliance.

According to USDOT, California missed a January 5 deadline to revoke the licenses after being warned as early as September that federal action could follow. A federal audit found that more than 25% of CDLs issued by California to non-U.S. residents were unlawful, raising concerns about road safety and compliance with federal motor carrier regulations. The Federal Motor Carrier Safety Administration (FMCSA) said it would not accept a corrective plan that leaves thousands of noncompliant drivers operating heavy commercial trucks on U.S. highways.

California officials strongly dispute the federal government’s claims. A spokesperson for the California Department of Motor Vehicles said the agency is fully compliant with both state and federal regulations and criticized the funding freeze as a move that could undermine public safety. The spokesperson added that California had engaged in discussions with federal officials about extending the January 5 deadline to allow additional review of its CDL program.

The issue has also taken on a political dimension. The Trump administration has repeatedly targeted California Governor Gavin Newsom, a vocal critic of the former president. Democratic Representative John Garamendi called the funding decision retaliatory, arguing that it punishes Californians by jeopardizing highway safety, road maintenance, and law enforcement training.

The dispute follows recent legal battles between California and USDOT, including a lawsuit over $33 million in withheld funds tied to English proficiency requirements for truck drivers and a separate case involving high-speed rail funding. Nationally, the administration has intensified scrutiny of foreign-born truck drivers, citing safety concerns. Federal data shows that about 16% of U.S. truck drivers were born outside the United States, making the issue a significant factor in ongoing transportation and immigration policy debates.