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New York State is suing the US federal government over the revocation of $73.5 million in highway funding.

by The Key 2 DOT
April 24, 2026
in Blog
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The state of New York is suing the United States Federal government over $73.5 million in yanked highway funding over illegally issued commercial drivers licenses. 

Secretary Duffy officially announced the withholding of $73.5M in highway funding on April 16th after much back and forth. New York state failed to revoke illegally issued non-domiciled CDLs and CLPs. Officials allege that 53% of all reviewed non-domiciled CDLs in the state were issued illegally. The USDOT also alleges that DMV’s systems defaulted to issuing 8-year licenses to foreign drivers for non-REAL ID licenses, regardless of when their legal status expired.”

Now, New York Attorney General Letitia ⁠James and Governor Kathy ​Hochul are representing the state of New York in a suit filed against the federal government filed on Friday, April 24th. The suit seeks to reverse the decision on yanked funding, arguing that the lost funds puts New Yorkers at risk, reported Reuters.

The appeals court will now consider whether the federal government acted within its own authority when it withdrew the funds. 

The post New York State suing US federal government over $73.5M in yanked highway funding appeared first on CDLLife.

  

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