US compliance alert: New York warned of $73M fund loss; federal audit flags improper immigrant commercial licences

The US Transportation Department has warned New York that it could lose $73 million in federal highway funds after an audit found thousands of immigrant commercial driver’s licences (CDLs) were allegedly issued without proper verification, Transportation Secretary Sean Duffy said on Friday, AP report.Duffy said federal investigators reviewed 200 non-domiciled commercial licences and found more than half had been issued improperly, including several that defaulted to an eight-year validity period regardless of when the applicant’s work authorisation expired. He also said New York could not demonstrate immigration-status verification for roughly 32,000 active licences in this category and, in some cases, issued CDLs despite applicants’ work permits already having lapsed.“When more than half of the licences reviewed were issued illegally, it isn’t just a mistake — it is a dereliction of duty by state leadership. Gov. (Kathy) Hochul must immediately revoke these illegally issued licences,” Duffy said. New York has 30 days to respond to the findings.The New York Department of Motor Vehicles rejected the allegations. DMV spokesperson Walter McClure said: “Secretary Duffy is lying about New York State once again in a desperate attempt to distract from the failing, chaotic administration he represents.

Here is the truth: Commercial Drivers Licenses are regulated by the Federal Government, and New York State DMV has, and will continue to, comply with federal rules.

”Duffy has launched a nationwide audit of immigrant CDL issuance following a fatal Florida crash involving a driver who was not authorised to be in the US. So far, only states led by Democratic governors have been warned of potential sanctions, though Duffy insisted the effort is not political and is focused on preventing unqualified drivers from operating heavy trucks and buses.The Transportation Department has already pressured California, Pennsylvania and Minnesota, where audits uncovered similar issues, prompting California to revoke 17,000 licences. A separate federal rule that sought to sharply restrict eligibility for noncitizens to obtain CDLs has been put on hold by a court.Immigrants constitute around 20% of US truck drivers, although non-domiciled licence holders account for only about 5% of CDL holders nationally.